Governors call for modernization of regional electricity system

MONTPELIER | Vermont Governor Phil Scott (R) and governors from four other New England states issued a statement Oct. 14 calling for "reforms" needed to achieve their states' respective goals for clean, affordable, and reliable electricity. "I've long said our work to address climate change can and must also work to make energy more affordable for Vermonters, so I'm pleased to be a part of this regional approach to achieving both of these priorities," said Scott. "With a strategic, multi-state approach we can have a greater impact on both climate change mitigation and energy affordability." The statement, signed by Scott, Connecticut Gov. Ned Lamont (D), Maine Gov. Janet Mills (D), Massachusetts Gov. Charlie Baker (R), and Rhode Island Gov. Gina Raimondo (D) indicates that reform of the regional electricity market design, transmission planning process, and the governance of the ISO-New England, the independent system operator for the New England power system, is needed. New Hampshire Gov. Chris Sununu (R) did not join fellow governors by signing-on to the statement Their so-called "vision document", which will outline the reforms, will be released through the New England States Committee on Electricity (NESCOE) this month. "It is far past time that New England reforms how its electric grid is managed," said Maine's Mills. "The wholesale electricity markets must advance and support clean energy laws and policies, as the states demand decarbonization and markets and consumers support more renewables. ISO-New England must keep pace with state priorities and it must be more transparent and accountable in its decision making, broadening its focus to include consumer and environment concerns as well as reliability and cost." "To meet to our administration's goal of net-zero emissions in Massachusetts by 2050, the Commonwealth needs a regional electricity system that can support the delivery of clean, affordable, and reliable energy to residents and businesses," said Massachusetts' Charlie Baker. "My administration looks forward to working with our partner states, ISO-New England and stakeholders to build a more transparent, modern and cost-effective power system that will allow New England states to meet our ambitious climate change and clean energy goals while creating a better future for our residents." "Here in Rhode Island, we're committed to reducing our greenhouse gas emissions and decarbonizing our future. I'm proud that we're on track to achieving 100% renewable energy by 2030," said Rhode Island's Raimondo. "In order to meet our shared clean energy goals and aggressively combat climate change, it's clear we need to take a regional approach." It is unknown if the called-for "reforms" would mean new state regulations impacting regional businesses. However, Guy Page, editor of The Vermont Daily Chronicle, has unpacked the meaning behind the governors' statement. And he sees a New England regional carbon tax looming on the horizon. Maybe that's why Gov. Sununu is absent? "Translated into layman's language, the governors don't like that ISO only buys the lowest-cost power available," according to Page. "Carbon-cutting renewable power rarely fits that description. Power plants burning energy-dense natural gas can sell wholesale power for 2-3 cents/kilowatt-hour. By contrast, power from proposed New England offshore wind projects would sell at an estimated wholesale cost of about 20 cents/kilowatt-hour. ISO's lowest-cost purchasing policy may be welcome to ratepayers but it's troublesome to states with laws requiring steep carbon reduction. "The same state legislatures that passed the reduction mandates lack the will to enforce them. In their own states, they won't ban cheap fossil-fuel power, mandate renewable power, or levy a carbon tax on life-essential electricity. Instead, the states want ISO-New England to solve their carbon-reduction problems for them, by taxing carbon." Page wrote that renewable power advocates "typically ignore or downplay the carbon-reduction value of nuclear and hydro. However, a June 2018 statement by Scott and every New England governor except Maine's suggested nuclear power price supports."

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Governors call for modernization of regional electricity system

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