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PRINTER'S NO. 2626
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE RESOLUTION
No.
576
Session of
2017
INTRODUCED BY PYLE, SNYDER, CORBIN, MATZIE, QUIGLEY, CUTLER,
PASHINSKI, PICKETT, SAYLOR, BERNSTINE, MARSHALL, MEHAFFIE,
LONGIETTI, NEILSON, BARBIN, HICKERNELL, SAINATO, TOOHIL,
MACKENZIE, CHARLTON, EVERETT, M. K. KELLER, A. HARRIS,
GODSHALL, PETRARCA, PETRI, GILLESPIE, METZGAR, MAHER, SANKEY,
MASSER, DeLUCA, KORTZ, KAMPF, TOEPEL, ROTHMAN, LEWIS,
SANTORA, FARRY, MILLARD, STEPHENS, COOK, WARD, WALSH,
MARSICO, MILNE, ELLIS, JOZWIAK, DELOZIER, HENNESSEY, TURZAI,
BARRAR, TAYLOR, DRISCOLL, READSHAW, REED, RAPP AND FEE,
OCTOBER 24, 2017
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, OCTOBER 24, 2017
A CONCURRENT RESOLUTION
Urging the Federal Energy Regulatory Commission to swiftly
consider the United States Department of Energy's proposed
Grid Resiliency Pricing Rule and implement policies to ensure
fuel-secure baseload electricity generation resources receive
proper compensation for the positive attributes they provide
our nation's and our Commonwealth's electric system.
WHEREAS, Electric generation power plants in this
Commonwealth that participate in the wholesale electric markets
strengthen competition and enhance the resilience and
reliability of the bulk power and transmission systems and are
vital to the public interest; and
WHEREAS, The nation's and this Commonwealth's economy,
environment and security depend on a reliable, resilient
electric grid powered by an "all of the above" mix of energy
generation resources, including traditional baseload generation
that is produced from long-term fuel sources located onsite; and
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WHEREAS, The North American Electric Reliability Corporation,
whose mission is to assure the reliability and security of North
America's bulk power system, in a May 2017 letter to United
States Secretary of Energy Rick Perry warned that "premature
retirements of fuel-secure baseload generating stations reduces
resilience to fuel supply disruptions"; and
WHEREAS, The recent United States Department of Energy Staff
Report to the Secretary on Electricity Markets and Reliability
made clear that resiliency must be addressed by the Federal
Energy Regulatory Commission (FERC) and there is an "urgent need
for clear definitions of reliability- and resilience-enhancing
attributes and should quickly establish the market means to
value or the regulatory means to provide them"; and
WHEREAS, The 2014 polar vortex exposed problems with the
resiliency of the electric grid when PJM Interconnection
struggled to meet demand for electricity because a significant
amount of generation was not available to run due to weather-
related outages; and
WHEREAS, Pennsylvania's fuel-secure baseload generation
plants employ thousands of workers in high-paying jobs and
contribute significantly to State and local economies; and
WHEREAS, Pennsylvania's coal industry, including coal power
plants, is a vital contributor to the State's economy, providing
support through direct, indirect and induced impacts, including
approximately 36,100 full and part-time jobs, and $4.1 billion
in total value added to the Commonwealth's economy; and
WHEREAS, Pennsylvania's nuclear industry, including nuclear
power plants, is a vital contributor to the State's economy,
providing support through direct, indirect and induced impacts,
including approximately 15,900 in-State full time jobs and $2
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billion to the Commonwealth's gross domestic product, and $69
million in net State tax revenues annually; and
WHEREAS, In addition to the reliability, security, grid
resilience and economic attributes, Pennsylvania's fuel-secure
baseload coal plants have made significant investments to meet
increased environmental standards, helping to improve air and
water quality in the Commonwealth; and
WHEREAS, Pennsylvania is also home to unique fuel-secure coal
generation sources that use waste coal as a fuel-source,
employing 3,800 Pennsylvania residents and producing 1,500
megawatts of renewable energy, also helping to remove
approximately 200 million tons of refuse coal from mine scarred
land in Pennsylvania; and
WHEREAS, In addition to the reliability, security, grid
resilience and economic attributes, Pennsylvania's fuel-secure
baseload nuclear power plants also provide more than 93% of this
Commonwealth's emissions-free electricity and are the only
emissions-free, predictable and reliable electric generation
source; and
WHEREAS, Pennsylvania's diverse portfolio of fuel-secure
baseload generation resources are vital to our Commonwealth's
economic competitiveness, natural environment and public health
and safety; and
WHEREAS, It is in the public interest that fuel-secure
baseload generation resources be properly compensated for
providing these positive attributes and under the current design
of the wholesale electric markets, prices are set in a manner
that undervalues fuel-secure generation resources; and
WHEREAS, The Secretary of Energy has proposed, for
consideration by FERC, a Grid Resilience Pricing Rule with the
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goal of ensuring our nation's energy security; therefore be it
RESOLVED (the Senate concurring), That the General Assembly
of the Commonwealth of Pennsylvania acknowledge the grid
resilience and reliability benefits that fuel-secure baseload
electricity generation resources provide to the residents,
businesses and economy of this Commonwealth and assert that
fuel-secure baseload generation resources receive proper
compensation for these positive attributes; and be it further
RESOLVED, That the General Assembly of the Commonwealth of
Pennsylvania agree with the goals of the United States
Department of Energy's proposed Grid Resiliency Pricing Rule and
urge the Federal Energy Regulatory Commission to swiftly
implement policies and approve tariff provisions to ensure fuel-
secure baseload electricity generation resources receive proper
compensation for all of the positive attributes they provide our
nation's and this Commonwealth's electric system; and be it
further
RESOLVED, That the General Assembly of the Commonwealth of
Pennsylvania, while expressing support for FERC's swift action
to ensure the positive attributes provided by fuel-secure
baseload generation resources receive proper compensation in the
wholesale market, will continue to exercise the General
Assembly's authority to make energy policy consistent with the
health, safety and welfare of our residents; and be it further
RESOLVED, That copies of this resolution be transmitted to
the President of the United States, United States Secretary of
Energy Rick Perry, FERC Commissioners, the presiding officers of
each house of Congress, each member of Congress from
Pennsylvania and the Board of Mangers of PJM Interconnection.
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