The Electric Power Association's Todd Snitchler discusses the challenges facing traditional merchant power generators in the transition to a clean energy grid, calling for an economywide price on carbon as part of the grid transformation required to meet the climate change threat. Studies show relatively small price on carbon can achieve a "dramatic reduction" in harmful emissions, EPSA's president and CEO says, noting that in regions with competitive markets, consumers will get "more bang for their buck" from a carbon price than from state subsidies. Snitchler addresses the problem of state-subsidized power resources in federally regulated regional wholesale power markets. Those subsidies distort price signals and jeopardize the flexible capacity resources needed to assure grid reliability, a chore that will only become more complicated with increased market penetration by intermittent, renewable resources. The more than 20-year history of the merchant power sector has shown that competitively sourced wholesale electric power has lowered electricity prices, reduced harmful emissions including greenhouse gases, and promoted innovation that has improved the grid and system reliability.
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