Forum Held to Address Utility MACT Implementation Concerns

On February 7, 2012, the Federal Energy Regulatory Commission (FERC) and the National Association of Regulatory Utility Commissioners (NARUC) held a forum in Washington, D.C., to address growing concerns about implementation of the Utility MACT. These include concerns that implementation of the rule may harm electrical grid liability, that there is a lack of certainty in implementation because multiple agencies are involved, and that the Utility MACT still has critical flaws.

At the forum, stakeholders agreed that there must be an open exchange of data and meaningful collaboration in order to identify potential localized electrical grid reliability issues. Some argue that the rule will harm grid reliability as plants go offline to install pollution controls, or choose to shut down rather than invest in technology to comply with the rule. Collaboration to address grid reliability and other implementation issues will require the coordination of multiple layers of decision-making, including FERC, EPA, the Department of Energy (DOE), regional transmission organizations, and state regulators. These agencies are currently developing strategies to address Utility MACT implementation issues efficiently.

The industry has also expressed concern that the process for granting case-by-case extensions to the MACT compliance deadline is flawed, and could expose utilities to the risk of third-party suits charging noncompliance in some instances.

Additionally, in a House Energy and Commerce Committee hearing on February 8, 2012, Republican lawmakers challenged the Utility MACT standards for new coal power plants, asking whether these standards functionally prevent the construction of new power plants because they are so stringent.

The NARUC-FERC forum is scheduled to meet again to address Utility MACT issues in July 2012.