Illustration: Brendan Lynch / Axios
Energy regulators are weighing whether to change the rules of regional energy markets intended to secure enough power supply as demand rises from AI and data centers.
Why it matters: The move would be a significant action by FERC to change 25-year-old regional energy markets in ways that could incentivize new gas and disadvantage wind and solar.
- The debate over how to rate wind and solar power on the grid comes as the Trump White House and Energy Department focus on keeping coal plants open to meet demand.
The big picture: Chair Mark Christie said Wednesday that the commission was building a record to address whether markets have failed and should be replaced with something else.
- "That's a compelling question, and I think after 25 years, it is time to ask it," Christie said.
- Christie questioned grid executives at a conference on whether it makes sense for FERC to require operators to meet a specific grid reserve or else be penalized.
- "It really comes down to, are you getting enough generation built, are you keeping generation from retiring," Christie said.
The conference was Christie's first appearance following Monday's news that the White House wants to replace him when his term expires at the end of the month.
Between the lines: Grid operators testifying to FERC said they were working to address the rise in demand but supported keeping the markets.
- "I don't know that we need" the Energy Department emergency to order plants to keep running, said Lanny Nickell, CEO of Southwest Power Pool, which operates in the south-central U.S.
- Nickell said states in his region have experienced a dramatic rise in requests to build gas-fired power plants.
- States are "starting to realize the value of generation that has the reliability attributes and a higher degree of accreditation," he said.
