In a March 25 Maine Voices op-ed, “We should stop subsidizing dinosaur fossil fuel plants in New England,” the authors (Ruthie Clements and Sonja Birthisel) claim that fossil fuel power plants are “subsidized” in the electricity market. That is simply wrong.
I’m president of the New England Power Generators Association, representing over 90 percent of the region’s electric generation capacity.
Every power plant in New England is required to participate in a forward capacity auction to guarantee availability three years into the future. It is the core reliability market for the region – one that does not exist in Texas and California, which have had recent blackouts. This competitive market is technology-neutral and is seeing growing amounts of renewables. The fuel diversity that exists in New England provides a reliable and resilient supply, dramatically lowers emissions and has resulted in the lowest prices in decades.
I do agree with the authors that today’s market does not adequately recognize climate change. Maine and other states should put a meaningful price on carbon emissions that covers electric generation, as well as the two biggest emissions sources: transportation and heating. This will drive needed investments and can be done in a way that keeps costs affordable for consumers. This changing economy will be powered by electricity, which means reliability must remain a core priority.
The forward capacity market is the best mechanism to ensure that New England will have electricity supplies on the coldest winter nights, hottest summer days and all those in between.
Dan Dolan
president, New England Power Generators Association
Boston
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