The DOE Notice of Proposed Rulemaking (NOPR) for consideration and final action by the Federal Energy Regulatory Commission seeks to “protect the American people from the threat of energy outages that could result from the loss of traditional baseload capacity.” To that end, the NOPR proposes greater valuation of the reliability and resiliency benefits provided by baseload generation sources such as coal and nuclear. Although the rulemaking proposal could ultimately result in solutions to prevent the premature closure of at-risk critical generation assets, there is also the potential for major re-regulation of the current wholesale power markets. The DOE NOPR has very few specifications beyond the 90-day on-site fuel requirement, the identification of affected RTOs, and timing. The NOPR may also lead to a prolonged period of uncertainty and legal challenges. This is in part because the current market and regulatory structures are elaborate and complex, and the NOPR demands much work to be required over a short period of time.
