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Proposal from grid operator would disproportionately impact offshore wind, prevent states from achieving climate goals.

April 20, 2022 – Yesterday, the New England for Offshore Wind coalition called on federal regulators at the Federal Energy Regulatory Commission (FERC) to reject ISO-New England’s (ISO-NE) proposal to delay the elimination of a market rule that disproportionately impacts offshore wind and would increase costs for ratepayers. In a letter to FERC, the coalition underscored the importance of offshore wind to state climate goals, highlighted the momentum of offshore wind policy across the country, and pushed back on ISO-NE’s claims that offshore wind development is uncertain. ISO-NE’s proposal to delay the elimination of the Minimum Offer Price Rule (MOPR) would prevent the fair participation of clean energy in regional markets and drive up consumer costs by incentivizing the procurement of unnecessary and redundant energy generation capacity in the region.

Offshore wind is our best opportunity for new sources of clean, renewable energy in New England, which boasts the best offshore wind resources in the country. Expanding local, renewable energy is critical to our efforts to prevent the worst impacts of climate change and increase energy security in these times of instability due to the conflict in Ukraine. Developed responsibly, offshore wind has the potential to create tens of thousands of high-quality, family-sustaining jobs; provide health benefits to vulnerable communities through pollution reduction; ensure equity in economic benefits; coexist with existing ocean uses; and protect wildlife and the environment every step of the way.

New England for Offshore Wind is a broad-based coalition of associations, businesses, environmental and justice organizations, institutions, and labor unions committed to combatting climate change by increasing the supply of clean energy to our regional grid through more procurements of responsibly developed offshore wind. We believe that responsibly developed offshore wind is the single biggest lever we can pull to address the climate crisis while also strengthening our regional economy, protecting ratepayers, creating high quality jobs, and improving public health by reducing pollution.

Susannah Hatch, Environmental League of Massachusetts Director of Clean Energy Policy and New England for Offshore Wind Regional Lead, said:
“Responsibly developed offshore wind will be the workhorse of our decarbonization efforts in our region, and it holds enormous potential to grow the economy, meet our energy needs, and create equitable economic benefits for decades to come. ISO-NE should allow that transition to take place instead of hindering states’ ability to achieve their climate goals and burdening ratepayers with unnecessary costs.”

Melissa Birchard, Acadia Center Director for Clean Energy and Grid Reform, said:
“Offshore wind is one of the most promising energy opportunities of this decade and, combined with energy storage, can be a key to addressing climate change and grid reliability in New England. We call on FERC to direct ISO-New England to stop dragging its feet on clean energy and eliminate the backward Minimum Offer Price Rule now – not years down the road – so that the region can meet its climate goals in time to protect communities from danger.”

Launa Zimmaro, League of Women Voters Massachusetts Legislative Specialist, Climate Change and Energy, said:
“Maintaining the MOPR would have real and lasting impacts on the health and well-being of residents in the Commonwealth, as well as our opportunities to grow a clean energy economy in the region.”

Charles Rothenberger, Save the Sound Climate and Energy Attorney and New England for Offshore Wind Connecticut State Lead, said:
“Removing the barriers to clean, renewable energy and supporting state efforts to transition to zero-carbon resources should be fundamental to the operation of our regional energy market. Every year that we delay reforming or eliminating the market rules that disadvantage renewable resources makes it more difficult and more expensive to address the pressing climate and air quality issues we face.”

John Carlson, Ceres Manager of State Policy and New England for Offshore Wind Business Lead said:
“New England states are making informed, considered policy decisions to forge a new clean energy economy in the region. Local, renewable energy resources will drive investment in the region, reduce emissions, create jobs, and insulate us from volatile fossil fuels markets. The continued imposition of the Minimum Offer Price Rule will delay and reduce the ability of states to reap these benefits in the long-term and drive up ratepayer costs in the near term. ISO-NE should eliminate this protectionist rule immediately and embrace the just transition to a clean energy future.”

Logan Malik, Massachusetts Climate Action Network Clean Energy Director, said:
“The rapid deployment of offshore wind is critical for the Commonwealth of Massachusetts to meet its 2030, 2040, and 2050 climate goals. ISO-NE’s proposal to delay repealing MOPR by two years will unnecessarily slow our progress towards meeting our emissions reduction targets and extend the life of old and dirty facilities that are polluting our communities. FERC should reject this proposal. In doing so they would be supporting grid reliability, energy security, and the growth of a promising industry that will create thousands of good-paying jobs in New England.”

Jen Benson, The Alliance for Business Leadership President, said:
“In delaying a decision on MOPR, ISO-NE is making it harder for renewables to gain access to the energy market by artificially raising the cost of clean energy to allow more expensive fossil fuels to “compete”. Ultimately this hurts ratepayers, impacts our economy, and potentially reduces New England-based innovation and investment. In order for Massachusetts to reach its own climate goals, we must project a consistent message that renewable energy will be valued fairly in forward capacity markets to ensure that near and long-term investment continues.”

William Sedlack, Maine Conservation Voters Program Manager and New England for Offshore Wind Maine State Lead, said:
“We call on ISO-NE to be a partner with Maine and the rest of New England in the transition to a just clean energy future. Delaying the elimination of the Minimum Offer Price Rule blocks clean energy from being able to fairly compete and participate in the market, burdens taxpayers, and wastes time that we do not have as states in a geographically vulnerable region to climate impacts.”