Industry Groups Urge FERC to Examine SEEM Proposal for Southeast Energy Market

Industry leaders from various sectors are calling on the Federal Energy Regulatory Commission (FERC) to scrutinize the Southeast Energy Exchange Market (SEEM) proposal submitted by 14 electric utilities in February 2021. The coalition, representing a broad coalition of clean electricity customers and developers, has expressed concerns that the proposed market may not provide the promised cost benefits to customers in the Southeast. They advocate for a more competitive regional wholesale market that would allow states to access clean energy supplies cost-effectively.

Key Takeaways:

• The SEEM proposal has been criticized for lacking transparency, governance, and consumer protections, which may hinder its effectiveness in serving ratepayers in the Southeast.
• The coalition urges FERC to require the utilities to supplement their filing with additional implementation details to determine whether SEEM is just and reasonable.
• The groups also advocate for modifications to the proposed SEEM design that enhance market and stakeholder protections, as well as the initiation of a joint conference with state regulators and energy officials to discuss the future of wholesale markets and transmission integration in the Southeast.
• The coalition notes that a recent study indicates that a fully competitive regional wholesale market in the Southeast would provide significant benefits to the region, well above those expected from the SEEM proposal.
• The industry groups stress that their members support the expansion of competitive wholesale electricity market frameworks in the Southeast, which would allow states to take advantage of low-cost advanced energy supplies and achieve their decarbonization goals.

Statistics:

• 14 electric utilities submitted the SEEM proposal to FERC in February 2021.
• The proposed SEEM market aims to serve ratepayers in the Southeast, but critics argue that it may not provide the promised cost benefits.
• A recent study indicates that a fully competitive regional wholesale market in the Southeast would provide significant benefits, including $14 billion in savings for clients and a reduction of 35% in carbon emissions by 2035.
• The Solar Energy Industries Association (SEIA) represents over 1,000 member companies, while Advanced Energy Economy (AEE) has more than 100 member companies in the $238 billion U.S. advanced energy industry, which employs 3.6 million U.S. workers.

Sources:

• Advanced Energy Economy
• Advanced Energy Buyers Group
• Renewable Energy Buyers Alliance (REBA)
• Solar Energy Industries Association (SEIA)
• FERC
• PR Newswire
• Advanced Energy Economy Blog