The Energy Markets Podcast S3E17: EPSA's Todd Snitchler discusses EPA's new power plant rules in the context of ongoing reliability concerns stemming from the transition to a clean-energy power grid
The Environmental Protection Agency's new proposed rules to significantly crack down on carbon emissions from fossil fuel-fired power plants, as published, promises to aggravate growing power grid reliability concerns, EPSA president and CEO Todd Snitchler suggests. "I think we need to be thinking a little more holistically and not siloed in the rules in order for us to make sure that we can achieve the outcomes that policymakers want us to achieve, while still ensuring system reliability. That has to be first and foremost," Snitchler says.
More broadly on grid-reliability concerns, Snitchler rejects assertions by some that competitive markets and RTOs are particularly vulnerable to outages and reliability issues. "I know that there are a number of views about what the right model is," he says, but he notes there are increasing reliability concerns in monopoly-regulated states as well as the clean-energy transition ratchets up. "I don't think there's a one-size-fits-all and we should just copy a different market because it allows vertically integrated utilities to carry the day because, even in that example, they're not able to get done, I think, some of the things that maybe some advocates would say that they can."
While there's little expectation the industry concerns will benefit anytime soon from a historically fractured Congress, Snitchler suggests lawmakers missed a key opportunity for bipartisan agreement during a recent debate over whether to include energy project permitting reforms in the Inflation Reduction Act.
"There was a time when energy wasn't quite so partisan. I think we would do well to try to think about constituents first," the former Ohio lawmaker and utility regulator says. "If you need to have transmission, and we all agree that we're going to need to have natural gas pipelines in order to power the system, those should go together. And that's where I think room for compromise would exist. That would be a best-case scenario in Washington because both sides would have something to gain. And they would be able to take that home and say, look, I won. And it would, in the end, result in a more reliable, more efficient power system."