A road paved with good intentions?: FERC's illegal war on state electricity subsidies

Todd S. Aagaard; Andrew N. Kleit

doi:10.1016/j.tej.2020.106766

A road paved with good intentions? FERC's illegal war on state electricity subsidies

Todd S. Aagaard, Andrew N. Kleit

John and Willie Leone Department of Energy & Mineral Engineering (EME)

Research output: Contribution to journal › Article › peer-review

2 Scopus citations

Abstract

Most initial reviews of FERC's order have offered scathing criticism of its negative policy consequences. Our critique adds two perspectives not represented thus far in the reaction to FERC's order. First, we explain how the FERC majority got to the point where it felt compelled to take action against state subsidies and why that judgment, although understandable in some respects, is misguided. FERC's action follows logically from a flawed policy adopted by a Democratic-majority Commission in 2011. Second, we explain why FERC's order fails to create a mechanism for a just and reasonable price and violates both the Administrative Procedure Act and Federal Power Act. It is therefore likely to be set aside by a court during the judicial review process.

Original language	English (US)
Article number	106766
Journal	Electricity Journal
Volume	33
Issue number	5
DOIs	https://doi.org/10.1016/j.tej.2020.106766
State	Published - Jun 2020

All Science Journal Classification (ASJC) codes

Energy (miscellaneous)
Law
Management of Technology and Innovation
Business and International Management

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10.1016/j.tej.2020.106766

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title = "A road paved with good intentions?: FERC's illegal war on state electricity subsidies",

abstract = "Most initial reviews of FERC's order have offered scathing criticism of its negative policy consequences. Our critique adds two perspectives not represented thus far in the reaction to FERC's order. First, we explain how the FERC majority got to the point where it felt compelled to take action against state subsidies and why that judgment, although understandable in some respects, is misguided. FERC's action follows logically from a flawed policy adopted by a Democratic-majority Commission in 2011. Second, we explain why FERC's order fails to create a mechanism for a just and reasonable price and violates both the Administrative Procedure Act and Federal Power Act. It is therefore likely to be set aside by a court during the judicial review process.",

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AB - Most initial reviews of FERC's order have offered scathing criticism of its negative policy consequences. Our critique adds two perspectives not represented thus far in the reaction to FERC's order. First, we explain how the FERC majority got to the point where it felt compelled to take action against state subsidies and why that judgment, although understandable in some respects, is misguided. FERC's action follows logically from a flawed policy adopted by a Democratic-majority Commission in 2011. Second, we explain why FERC's order fails to create a mechanism for a just and reasonable price and violates both the Administrative Procedure Act and Federal Power Act. It is therefore likely to be set aside by a court during the judicial review process.

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A road paved with good intentions? FERC's illegal war on state electricity subsidies

Abstract

All Science Journal Classification (ASJC) codes

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