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Richard "Dick" Brooks
Richard "Dick" Brooks
Expert Member
Top Contributor

It makes no sense to eliminate the competitive electricity market - CommonWealth Magazine

I concur with the author of this opinion piece (click Read More) below. We need to fix what's broken with the energy markets in Massachusetts. A return to "cost of service" programs would introduce more uncertainty in the energy transition.

This is the time to focus on collaborative efforts to ensure grid reliability, such as collaborative Integrated Resource Planning as part of capacity market reforms (AOCE), to address grid reliability risks, which NERC has astutely identified in their 2023 Risk Priorities Report.

With increased legislative focus on decarbonization, decentralization, and electrification,Ā energy policy is expected to drive rapid change, NERC’s report concludes. ā€œThere is an undeniable need to increase coordination and collaboration among all policy makers and regulators as well as on the owners and operatorsā€ of the bulk power system

The disruptions caused by a return to "cost of service" by MA would likely introduce reliability risks across all of New England, negatively impacting neighboring States at a time when collaboration and cooperation are needed most to address extreme weather risks and risks to grid reliability:

The Secretary of EEA finds that use of multi‐state, market‐based mechanisms, structures, systems or competitive solicitations would be beneficial to the Commonwealth. Massachusetts can improve on its current single‐state, technology‐specific approach to supporting clean energy development and achieving greenhouse gas emissions reductions. New structures may help the Commonwealth meet its clean energy needs and decarbonization requirements while supporting reliable system operations and affordability for consumers.

  • Massachusetts must collaborate with its regional partners and explore more expedient market‐based approaches to support the development of clean energy, the achievement of state decarbonization requirements, and reduced consumer costs.
  • While we explore other market‐based approaches with our regional partners, Massachusetts should continue to optimize its existing clean energy procurement authority through multi‐state and regional coordination, building on recent efforts to partner with other states to further shared clean energy goals and decarbonization requirements.

A return to "cost of service" may also slow progress toward achieving decarbonization goals, as compared to other options to address capacity market issues needing reforms.

Reliable Energy Analytics (REA) supports NERC's recommendation to mitigate grid reliability risks through collaborative and cooperative integrated resource planning initiatives among policy makers, grid operators and asset owners, as part of capacity market reforms within New England and the positions expressed by Travis Kavulla in his opinion piece (click Read More button below).

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