FERC on Thursday finalized in a 3-2 vote an immediate change in policy to clarify how it plans to consider market rules proposed by regional grid operators that want to incorporate carbon prices into the wholesale market.

FERC

With Republicans James Danly and Mark Christi in partial dissent, the Federal Energy Regulatory Commission finalized the policy statement proposed last fall (No. AD20-14-000). The approved policy took immediate effect.

“Carbon pricing has emerged as an important market-based tool in state efforts to reduce greenhouse gas emissions, including in the electricity sector,” FERC noted. “Twelve states now impose some version of carbon pricing, with numerous additional states considering them. Various entities, including regional grid operators, are examining...