Energy regulators split on EPA rules’ impact

The Democratic chairman of the Federal Energy Regulatory Commission (FERC) will tell Congress Wednesday that power companies can comply with various Environmental Protection Agency rules without jeopardizing supply reliability, but a GOP member of the commission isn’t so sure.

“With sufficient information and time, the electric industry can plan to meet both its reliability and environmental obligations,” said FERC Chairman Jon Wellinghoff, in prepared testimony for a House Energy and Commerce Committee hearing on the issue scheduled Wednesday.

The Energy and Power subcommittee hearing is reviewing the effects of recently finalized EPA rules to curb air pollution that blows across state lines, as well as upcoming rules on air toxics, cooling water, greenhouse gases and coal wastes.

Many Republicans, who are seeking to delay and soften EPA regulations, say the rules will cumulatively jeopardize the industry’s ability to meet the nation’s power demand.

Republican FERC member Philip Moeller, in his statement to the panel, provides new support for that view. He states:

With respect to reliability, I remain concerned that the timeline for electric utility planning and implementation is not compatible with the EPA timelines for its new regulations. Constructing needed transmission assets in this nation is still a very challenging endeavor. Planning, cost-allocation, permitting, siting, and construction are often extremely difficult and controversial, often leading to years of litigation, delay and potentially stranded capital.

But Democratic FERC member John Norris offers a view similar to Wellinghoff’s.

“In short, based on the information I have reviewed to date on EPA’s regulations, I am sufficiently satisfied that the reliability of the electric grid can be adequately maintained as compliance with EPA’s regulations is achieved,” he states.

Wellinghoff and Moeller also differ on the appropriate role for FERC in addressing the issue. Their testimony, as well as statements from the other FERC members, is available here.