Vistra Energy Finds Federal Energy Regulatory Commission's O
IRVING, Texas, Dec. 30, 2019 /PRNewswire/ -- After thorough review of the Federal Energy Regulatory Commission's order on the PJM capacity auction rules, Vistra Energy (NYSE: VST) supports the reasoned action that directs PJM to reform its capacity auction to address the anti-competitive effects state-subsidized resources have on the ability of the capacity market to function properly. While the order allows certain exemptions, it strikes the right balance by specifically directing PJM to establish a minimum capacity offer price for all state-subsidized resources equal to the net cost of entry for new resources and the net avoidable cost rate for existing resources. FERC initiated the proceeding to reform PJM's capacity market in a June 2018 order that rejected two PJM proposals for capacity market reform, finding PJM's existing capacity auction rules unjust and unreasonable as a result of the price-suppressive impact of state subsidies.
"We are pleased FERC has resolved the regulatory uncertainty hanging over the PJM markets. We applaud the Commission for directing reforms that preserve the integrity of competitive markets and will provide the confidence in the PJM capacity auction process necessary to support investment in a balanced set of resources to maintain electric reliability," said Curt Morgan, president and chief executive officer of Vistra. "We recognize that some will initially react negatively to the FERC order; however, as they evaluate options, we hope they take into account the tremendous savings their constituents have realized over the years from the competitive PJM markets and recognize that FERC must ensure fair and equitable treatment for all market participants. Vistra supports states developing energy policies, but the company does not support exercising those policy decisions in a way that distorts competitive pricing."
Morgan continued, "It seems most of the energy policy objectives relate to climate change and we believe there is a better path forward to achieve these objectives – one that is market-based, does not disrupt competitive market dynamics, and provides a level playing field. As we recently announced, Vistra supports an economy-wide, national or regional carbon abatement program with a dividend as the most effective and equitable mechanism to promote the reduction of greenhouse gas emissions. This kind of approach would allow companies to make strategic choices about their assets based on a uniform set of rules and transparent pricing and would eliminate the need for subsidies that are the focus of FERC's reforms. We encourage states to work expeditiously to adopt and enhance market-based carbon abatement programs, and we look forward to participating in that process."
Vistra believes the FERC order is appropriate for the following reasons:
The PJM capacity market order is a balanced approach to a very complex and hyper-politicized matter that will preserve the competitive markets, which have protected electric consumers and provided billions of dollars of savings, and ensure that rates are just and reasonable for all market participants, regardless of their fuel source. The order and an effective carbon abatement program can be a powerful combination bridging power markets to a new future. We look forward to working with PJM and stakeholders as this order is implemented.
About Vistra Energy
Vistra Energy (NYSE: VST) is a premier, integrated, Fortune 350 energy company based in Irving, Texas, providing essential resources for customers, commerce, and communities. Vistra combines an innovative, customer-centric approach to retail with safe, reliable, diverse, and efficient power generation. The company brings its products and services to market in 20 states and the District of Columbia, including six of the seven competitive power markets in the U.S. and markets in Canada and Japan, as well. Serving nearly 5 million residential, commercial, and industrial retail customers with electricity and gas, Vistra is the largest competitive residential electricity provider in the country and offers over 40 renewable energy plans. The company is also the largest competitive power generator in the U.S. with a capacity of approximately 39,000 megawatts powered by a diverse portfolio of natural gas, nuclear, coal, solar, and battery energy storage facilities. In addition, the company is a large purchaser of wind power. The company is currently developing the largest battery storage system of its kind in the world – a 300-MW/1,200-MWh system in Moss Landing, California. Vistra is guided by four core principles: we do business the right way, we work as a team, we compete to win, and we care about our people, our neighbors, and our stakeholders. Learn more about Vistra's environmental, social, and governance efforts and read the company's sustainability report at https://www.vistraenergy.com/sustainability/.
Cautionary Note Regarding Forward-Looking Statements
The information presented herein includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which Vistra Energy Corp. ("Vistra Energy") operates and beliefs of and assumptions made by Vistra Energy's management, involve risks and uncertainties, which are difficult to predict and are not guarantees of future performance, that could significantly affect the financial results of Vistra Energy. All statements, other than statements of historical facts, that are presented herein, or in response to questions or otherwise, that address activities, events or developments that may occur in the future, including such matters as activities related to our financial or operational projections, projected synergy, value lever and net debt targets, capital allocation, capital expenditures, liquidity, projected Adjusted EBITDA to free cash flow conversion rate, dividend policy, business strategy, competitive strengths, goals, future acquisitions or dispositions, development or operation of power generation assets, market and industry developments and the growth of our businesses and operations (often, but not always, through the use of words or phrases, or the negative variations of those words or other comparable words of a future or forward-looking nature, including, but not limited to, "intends," "plans," "will likely," "unlikely," "believe," "expect," "seek," "anticipate," "estimate," "continue," "will," "shall," "should," "could," "may," "might," "predict," "project," "forecast," "target," "potential," "forecast," "goal," "objective," "guidance" and "outlook"),are forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Although Vistra Energy believes that in making any such forward-looking statement, Vistra Energy's expectations are based on reasonable assumptions, any such forward-looking statement involves uncertainties and risks that could cause results to differ materially from those projected in or implied by any such forward-looking statement, including but not limited to (i) adverse changes in general economic or market conditions (including changes in interest rates) or changes in political conditions or federal or state laws and regulations; (ii) the ability of Vistra Energy to execute upon the contemplated strategic and performance initiatives (including the risk that Vistra Energy's and Dynegy's respective businesses will not be integrated successfully or that the cost savings, synergies and growth from the merger will not be fully realized or may take longer than expected to realize); (iii) actions by credit ratings agencies, (iv) with respect to the Crius acquisition, the ability for Vistra to successfully integrate the Crius business as currently projected, and (v) those additional risks and factors discussed in reports filed with the Securities and Exchange Commission ("SEC") by Vistra Energy from time to time, including the uncertainties and risks discussed in the sections entitled "Risk Factors" and "Forward-Looking Statements" in Vistra Energy's annual report on Form 10-K for the year ended December 31, 2018 and any subsequently filed quarterly reports on Form 10-Q.
Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law, Vistra Energy will not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible to predict all of them; nor can Vistra Energy assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.
View original content:http://www.prnewswire.com/news-releases/vistra-energy-finds-federal-energy-regulatory-commissions-order-on-the-pjm-capacity-auction-to-be-just-reasonable-and-protective-of-competitive-markets-300979670.html
SOURCE Vistra Energy