CEO DATELINE - Plans for coal, nuclear subsidies nixed, disappointing industry associations
CEO DATELINE - Plans for coal, nuclear subsidies nixed, disappointing industry associations
- January 9, 2018 |
- Walt Williams
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Groups representing coal and nuclear power producers expressed their disappointment Monday after a regulatory commission rejected a Trump administration proposal to subsidize energy generation by both industries.
Secretary of Energy Rick Perry had pitched a plan to prop up the struggling coal and nuclear industries through higher payments for the electricity they generate. However, the five-member Federal Energy Regulatory Commission rejected the plan by unanimous vote.
The American Coalition for Clean Coal Electricity—which represents coal producers—was among the groups unhappy with FERC's decision. ACCCE pointed to the recent severe weather along the East Coast as example of how coal-fired power plants provides reliable electricity during emergencies.
"The recent bomb cyclone is a reminder why we need a healthy coal fleet," ACCCE CEO Paul Bailey said. "Several grid operators relied on the coal fleet for more than 40 percent of the electricity this past week."
National Mining Association CEO Hal Quinn also pointed to the recent bout of bad weather to illustrate what he said is the importance of coal for maintaining a stable electric grid.
"That coal-powered electricity came from many plants that will no longer be available if retirements continue at the pace expected," Quinn said.
The Nuclear Energy Institute applauded Perry's effort to draw attention to the issue, but at the same time said the current status quo "will lead to more premature shutdowns of well-run nuclear facilities."
"Once closed, these facilities are shuttered forever," NEI CEO Maria Korsnick said.
While the coal and nuclear industries decried the FERC vote, groups representing the oil and renewable energy industries celebrated what they characterized as a heavy-handed government solution that ignored market realities.
The Independent Petroleum Association of America "finds FERC's reasoning and resulting order to be sound and in keeping with the overwhelming documentation submitted? by a diverse group of interested parties. Even the organized markets stated there is no grid reliability emergency," said Susan Ginsberg, IPAA vice president of crude oil and natural gas regulatory affairs.
"We are very encouraged by the action taken by FERC today," a coalition of nine oil and renewable energy groups said in a joint statement. The American Petroleum Institute, Solar Energy Industries Association and American Wind Energy Association are among the groups that signed off on the statement.
"We look forward to engaging with FERC, (U.S. Department of Energy), and grid operators in an examination of what resilience of the electric power system means and requires, and to demonstrating the contribution of our industries to ensuring reliable power for all," the groups said.
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