Here are six key items to be aware of today concerning FERC Carbon Pricing Policy:

1. FERC issues Policy Statement on carbon pricing. On October 15, 2020, during a FERC webcast technical conference on “Carbon Pricing in Organized Wholesale Electricity Markets,” FERC issued a Policy Statement signaling its authority to review and approve ISO and RTO incorporation of carbon pricing programs into their rate structures.

2. Commissioners have expressed mixed views on carbon pricing. Following on this October conference, former FERC Chairman Neil Chatterjee (a Republican) indicated his view that there was “consensus and enthusiasm” for carbon pricing as a market-driven solution to climate change. Commissioner James Danly outlined a more conservative response, especially concerning whether FERC has the authority and jurisdiction to review and comment on grid operators’ carbon pricing measures under the Federal Power Act. At that time, Commissioner Glick noted that, “if finalized, the policy statement would provide states with the confidence that FERC would not deny state-led efforts to price carbon”; that said, Glick at that time also rejected the idea of focusing solely on “byzantine administrative pricing.”...