Dive Brief:
- While many generators have pressed the federal government for more flexibility in carbon rules, PSEG CEO Ralph Izzo said the EPA has been responsive in communicating with stakeholders and believes the process could ultimately be a positive for both sides.
- Izzo has long preferred that any action to curb carbon emissions come through the legislative process, according to E&E, but "we are supportive of bringing some regulatory controls over carbon," he said.
- PSEG and the New Jersey Board of Public Utilities both want the EPA to credit the utility's nuclear fleet as the state looks to reduce carbon emissions, Izzo said.
Dive Insight:
As the federal government works on proposed carbon limits, generators have pressed for flexibility. But that tension is natural, and the back-and-forth between regulators and the industry has generally been positive, according to PSEG CEO Ralph Izzo. EPA Administrator Gina McCarthy "has been outstanding in terms of her willingness to listen on a whole range of issues," Izzo said, as reported by E&E Publishing, calling her "a brilliant regulator."
"The fundamental difference at this point that starts to creep into the world is how much time is left in the administration; so how much flexibility can she allow herself to provide when the calendar waits for no person and the days click off?" Izzo said.
PSEG is considering constructing a new $600 million, 450 MW combined-cycle plant in Connecticut, which would run on oil or natural gas and would feed into the New England ISO grid.
Izzo also weighed in on the determination that federal regulators overstepped their bounds in issuing Order 745, predicting that demand response would eventually cease to exist in both the power and capacity markets.
PSEG officials also noted that FERC opened a "preliminary, non-public staff investigation" into errors related to bidding into the PJM market.
