82 FR 24966 - State Policies and Wholesale Markets Operated by ISO New England Inc., New York Independent System Operator, Inc., and PJM Interconnection, L.L.C.; Notice Inviting Post-Technical Conference Comments

DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission

Federal Register Volume 82, Issue 103 (May 31, 2017)

[Federal Register Volume 82, Number 103 (Wednesday, May 31, 2017)]
[Notices]
[Pages 24966-24967]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-11199]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. AD17-11-000]


State Policies and Wholesale Markets Operated by ISO New England 
Inc., New York Independent System Operator, Inc., and PJM 
Interconnection, L.L.C.; Notice Inviting Post-Technical Conference 
Comments

    On May 1 and May 2, 2017, Federal Energy Regulatory Commission 
(Commission) staff convened a technical conference to discuss the 
interplay between state policy goals and the wholesale markets \1\ 
operated by ISO New England Inc., New York Independent System Operator, 
Inc., and PJM Interconnection, L.L.C. (Eastern RTOs/ISOs).
---------------------------------------------------------------------------

    \1\ Unless otherwise indicated, all references herein to 
wholesale markets refer to the capacity, energy, and ancillary 
services markets.
---------------------------------------------------------------------------

    All interested persons are invited to file initial and reply post-
technical conference comments on the topics discussed during the 
technical

[[Page 24967]]

conference, including the questions listed in the Supplemental Notice 
issued in this proceeding on April 28, 2017.
    In order to provide structure to the technical conference 
discussion, staff identified the following potential paths forward with 
respect to the interplay between state policy goals and the wholesale 
markets:
     Path 1--Limited or No Minimum Offer Price Rule: An 
approach that would either not apply the minimum offer price rule to 
state-supported resources, or limit application of the minimum offer 
price rule to only state-supported resources where federal law preempts 
the state action providing that support.
     Path 2--Accommodation of State Actions: An approach that 
would accommodate state policies that provide out-of-market support 
with the operation of the wholesale markets by allowing state-supported 
resources to participate in those markets and, when relevant, obtain 
capacity supply obligations, subject to adjustments necessary to 
maintain certain wholesale market prices consistent with the market 
results that would have been produced had those resources not been 
state-supported.
     Path 3--Status Quo: An approach that would rely on 
existing tariff provisions applying the minimum offer price rule to 
some state-supported resources, and continuing case-by-case litigation 
over the specific line to be drawn between categories of state actions 
that may, or may not, result in a state-supported resource being 
subject to the minimum offer price rule.
     Path 4--Pricing State Policy Choices: An approach in which 
state policies, to the extent possible, would value the attributes 
(e.g., resilience) or externalities (e.g., carbon emissions) that 
states are targeting in a manner that can be readily integrated into 
the wholesale markets in a resource-neutral way. For those state 
policies that cannot be readily valued and integrated into the 
wholesale markets, Path 4 would also require consideration of what, if 
anything, the Commission should do to address the market impacts of 
these state policies. For instance, other approaches for these state 
policies may include accommodation, application of the minimum offer 
price rule, or an exemption from the minimum offer price rule.
     Path 5--Expanded Minimum Offer Price Rule: An approach 
that would minimize the impact of state-supported resources on 
wholesale market prices by expanding the existing scope of the minimum 
offer price rule to apply to both new and existing capacity resources 
that participate in the capacity market and receive state support.
    Commenters are invited to address these paths, to describe 
alternative potential paths forward in the wholesale markets, or to 
describe individual solutions. Commenters are encouraged to discuss the 
following with regard to any approach: (1) Any centralized wholesale 
market changes (at a conceptual level) that would need to accompany 
implementation of a particular approach; (2) the feasibility of 
implementation; (3) the implications for market participants' ability 
to make long-term decisions; and (4) the near-term and long-term 
sustainability.
    In addition, Commission staff is interested in comments on the 
following topics:
    1. The principles and objectives that should guide the selection of 
a path forward, as well as the principles and objectives that should 
guide rule changes that would be required by their suggested approach.
    2. The degree of urgency for reconciling wholesale markets and 
state policies and if that urgency necessitates both a near-term (e.g., 
next one to three years) approach and a different long-term approach. 
To the extent commenters advocate for different near-term and long-term 
solutions, please explain what type of transition is needed and why, 
and how the suggested near-term approach will facilitate achievement of 
the suggested long-term approach.
    3. Long-term expectations regarding the relative roles of wholesale 
energy and capacity markets and state policies in the Eastern RTOs/ISOs 
in shaping the quantity and composition of resources needed to cost-
effectively meet future reliability and operational needs.
    4. What procedural steps the Commission should take, if any, to 
reconcile the competitive market framework with the increasing interest 
by states to support particular resources and resource attributes that 
might facilitate such reconciliation.
    Commenters may reference material previously filed in this docket, 
including the technical conference transcript, but are encouraged to 
avoid repetition or replication of previous material. Initial and reply 
comments must be submitted on or before 30 days and 45 days, 
respectively, from the date of this notice. Initial comments should not 
exceed 15 pages and reply comments should not exceed 10 pages.
    For further information please contact individuals identified for 
each topic:
    Technical Information: Amr Ibrahim, Office of Energy Policy and 
Innovation, Federal Energy Regulatory Commission, 888 First Street NE., 
Washington, DC 20426, (202) 502-6746, [email protected].
    Legal Information: Gretchen Kershaw, Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street NE., Washington, 
DC 20426, (202) 502-8213, [email protected].

    Dated: May 23, 2017.
Kimberly D. Bose,
Secretary.
[FR Doc. 2017-11199 Filed 5-30-17; 8:45 am]
 BILLING CODE 6717-01-P