- Five governors call for evaluation of incentives for clean, secure energy options
- Region relies more on expensive heating oil as nuclear, coal plants retire
- Governors’ statement follows action to value nuclear in New York, Illinois, New Jersey
Five New England governors have released a statement highlighting the benefits of nuclear energy for their region and calling for a serious evaluation of plans to properly value secure, clean energy sources.
“Effective next June, the [New England] region will have two nuclear power plants that represent approximately 3,500 megawatts of baseload energy that is not dependent on natural gas infrastructure and also helps to meet emission goals,” they wrote. “While some regional programs, including the Regional Greenhouse Gas Initiative assign value to clean energy resources, it is important to continue to evaluate cost-effective policies that properly value existing clean energy resources which have significant fuel security implications.”
The governors of Connecticut, Massachusetts, New Hampshire, Rhode Island and Vermont added that winter fuel security is “the most significant issue facing the region.” The governors underlined the challenge of increasing reliance on natural gas-fired generation during cold periods when the region’s natural gas is used primarily for home heating.
“These concerns have been heightened as non-natural gas-fired generation resources, such as nuclear, coal, and oil, have retired in recent years,” the governors said. “During recent winters, ISO New England has been relying on more expensive, carbon-intensive oil-fired units to ensure sufficient generation to meet hour-by-hour demands on our energy system.”
…It is important to continue to evaluate cost-effective policies that properly value existing clean energy resources which have significant fuel security implications.
The governors suggested different strategies to address this reliance on expensive heating oil, including public education campaigns, demand response and energy efficiency measures.
“There is no one clear solution to the problem, and each state’s policy priorities will inform the solutions that the states want to prioritize,” the governors say.
The letter adds that as the region works to develop “market incentives” for fuel security, realistic assumptions must be made concerning energy options.
“It is essential that the ISO-NE accurately define the nature and extent of the problem, ensure that reasonable assumptions are made regarding available resources, and provide transparent information regarding the operational benefits of different solutions,” the governors said. “When considering market design options, the ISO-NE must also examine whether existing markets that provide similar services are providing benefits commensurate with the costs borne by New England customers.”
Several states have already taken steps to properly value nuclear energy’s zero-emissions benefits. Three states—New York, Illinois and New Jersey—have decided to use zero-emissions credits to compensate their nuclear plants for carbon-free electricity generation. In 2017, Connecticut passed a law that would allow the Millstone Power Station to compete with other non-emitting sources in a clean electricity procurement program. Similar policies supporting nuclear energy are under active consideration in Ohio and have drawn attention in Pennsylvania.