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 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, energy policy is expected to drive rapid change, NERC’s report concludes. “There is an undeniable need to increase coordination and collaboration among all policy makers and regulators as well as on the owners and operators” 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. A withdrawal from the competitive energy market in New England 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.