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The Federal Energy Regulatory Commission does have the legal authority to implement a carbon price, legal experts agreed during a Wednesday technical conference on carbon pricing.
Under sections 206 and 205 of the Federal Power Act, FERC has the authority to actualize such a policy through the regional transmission operators (RTO) and independent system operators (ISO), six panelists spanning academia and industry law told commissioners. But a slightly murkier question is whether the commission has the power to implement such a tariff unilaterally — an issue Commissioner James Danly was particularly interested in.
If FERC were to establish a record, there is no “inherent jurisdictional bar” to prevent the commission from issuing a carbon price without a direct request from grid operators, Ari Peskoe, director of Harvard’s Electricity Law Initiative, said. Others said it was possible, but tricky without a legislative mandate.