December 4, 2022

Volume XII, Number 338

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December 02, 2022

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December 01, 2022

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Key Takeaways | Outlook for Competitive Power in 2022

On February 2, Neil Levy and David Tewksbury, partners in McDermott’s Energy Regulatory, Markets & Reliability Practice Group, hosted Todd Snitchler, president and CEO of the Electric Power Supply Association (EPSA), for an in-depth discussion about developments affecting the competitive power sector as we move into 2022.

 

 

Below are the key takeaways from this discussion:

  • Competition has benefited consumers by shifting risk from consumers to investors, lowering prices, and reducing emissions, while improving reliability. However, competitive power markets are facing challenges due to recent state actions and FERC decisions.

  • Carbon pricing would be one way to address concerns regarding emissions within a competitive market framework.

    • Competition has benefited consumers by shifting risk from consumers to investors, lowering prices, and reducing emissions, while improving reliability. However, competitive power markets are facing challenges due to recent state actions and FERC decisions.

    • Carbon pricing would be one way to address concerns regarding emissions within a competitive market framework.

    • The federal government and states need to work together to preserve competition and ensure that state goals do not jeopardize reliability.

    • Steps must be taken to ensure that resources required for reliability are not pushed out of the market.

    • States have been focused on emissions reductions by subsidizing certain types of resources, which can result in lower market prices. At the same time, recent FERC actions have also reduced revenues for various resources.

© 2022 McDermott Will & EmeryNational Law Review, Volume XII, Number 35
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About this Author

Partner

Neil L. Levy focuses his practice on energy-related regulatory and transactional matters. He represents independent power producers, electric power and natural gas marketers, merchant transmission developers, interstate pipelines and local distribution companies before the Federal Energy Regulatory Commission (FERC), state public utility commissions and the courts of appeal. Neil regularly represents private equity clients in merger and acquisition transactions in the energy sector. He also focuses on representing clients in energy-related investigations and audits before FERC and the...

202-756-8080
Partner

David G. Tewksbury focuses his practice on federal energy regulatory law, particularly as it relates to electric power. He advises independent power producers, power marketers, trade associations and others on a wide range of federal energy regulatory, markets and reliability matters.

David handles issues arising under various federal and state laws, including the Federal Power Act, the Public Utility Regulatory Policies Act of 1978, the Natural Gas Act, the Natural Gas Policy Act of 1978, the Public Utility Holding Company Act of 2005 and the Energy Policy Act of 2005.

His...

202-756-8230
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