Apr 18, 2018 IPAA Underscores Importance of Free Market U.S. Energy Policies
Letter to National Economic Council Specifically Cites FirstEnergy Solutions’ DOE Filing on Nuclear-Powered and Coal-Fired Generators
WASHINGTON, D.C. – Independent Petroleum Association of America (IPAA) President and CEO Barry Russell today called on The White House to support free market policies that put America first by encouraging the use of all sources of American energy. In his letter to newly-named National Economic Council Director Larry Kudlow, Russell urged the need for fairness in implementing policies that directly affect the national energy marketplace.
“You have long been aware of the key role of American oil and natural gas production to the U.S. economy and as a means to achieve foreign policy goals through exports,” wrote Russell in the letter. “In your new role, IPAA urges you to promote policies that encourage American energy production without implementing policies that artificially advantage one fuel over other sources.
“All energy sources have experienced cycles in production and/or demand. The decreased demand for coal and nuclear energy, due in large part to the abundance of lower-cost natural gas, is particularly notable. However, recent efforts by owners of coal-fired and nuclear generators for special treatment within electric markets would lead to bad policy and negative implications for gas-fired generators.”
For example, IPAA goes on to specifically cite, “FirstEnergy Solutions filed a request with DOE for issuance of an order pursuant to Section 202(c) of the Federal Power Act, requiring PJM Interconnection, L.L.C. to pay certain nuclear-powered and coal-fired generators ‘…cost-based rates that provide for full cost recovery….’”
The full text of the letter is available on the IPAA website.
In November 2017, IPAA joined a diverse group of U.S. energy industry associations in submitting comments urging the Federal Energy Regulatory Commission (FERC) not to adopt the U.S. Department of Energy’s proposed rulemaking to provide out-of-market financial support to uneconomic coal and nuclear power plants in the wholesale electricity markets overseen by FERC. In addition, the Natural Gas Council, which collectively represents companies that produce, transport, and deliver natural gas throughout the country, released a joint report last summer that emphasized the flexibility, reliability, and resiliency of U.S. natural gas systems.
About the Independent Petroleum Association of America
The Independent Petroleum Association of America (IPAA) is a national upstream trade association representing thousands of independent oil and natural gas producers and service companies across the United States. Independent producers develop 90 percent of the nation’s oil and natural gas wells. These companies account for 54 percent of America’s oil production, 85 percent of its natural gas production, and support over 2.1 million American jobs. Learn more about IPAA by visiting www.ipaa.org and following @IPAAaccess on Twitter.