Explainers Electricity Policy

Why Regulation of Net Energy Metering Programs Should Remain a State Matter

Should FERC agree with NERA’s position, it would have a significant impact on our system of federalism. A growing number of states are already concerned with what they view as FERC infringement in state decision-making and policy development. As a result, some states have begun to lose faith in wholesale markets. States such as Maryland, New Jersey and Connecticut have all announced their intentions to investigate leaving wholesale capacity markets due to FERC’s intrusion into state authority. Were the federal government to preempt state policies in this area, it may result in a greater number of states looking to exit wholesale organized markets entirely.

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