NYISO Carbon Pricing Plan Could Challenge FERC
August 12, 2019
NYISO is preparing to ask FERC to approve a plan to put a price on CO2 emissions. The ISO would incorporate the social cost of carbon emissions into wholesale energy markets. Carbon pricing is positioned as a key component to help New York meet its 100% carbon-free electricity by 2040 goal.
S&P Platts reports that a CO2 emissions price will “increase zonal average wholesale electricity prices in New York by $20/MWh to $24/MWh, with the largest effects in New York City. However, if the carbon price is rebated to electricity end users, retail consumers would only pay an extra $0.09/MWh to $1.21/MWh, or 0.1% to 1.1%.”
Until now, current FERC leadership has declined to assert any role in curbing greenhouse gas emissions and no other ISO has proposed a similar plan.