Regulator turns down US coal and nuclear subsidies plan

09 January 2018

The US Federal Energy Regulation Commission yesterday rejected the energy secretary’s proposal to subsidise coal and nuclear power plants in parts of the country.

It said it is “terminating” the proposal submitted to the commission by energy secretary Rick Perry as the Trump administration was unable to provide any evidence that shutting down coal-fired power plants threatens the nation’s electric grid.

Critics have said the plan would have disrupted electricity markets and raised prices in parts of the US.

In a statement, the FERC said: “We appreciate the secretary reinforcing the resilience of the bulk power system as an important issue that warrants further attention.”

Perry had argued that the commission should provide market-based incentives to coal and nuclear power plant owners to make the grid more resilient.  

The energy secretary said in response to the decision that his proposal was meant to initiate “a national debate on the resiliency of our electric system”.

He added that he looks forward to working with the commission “to ensure the integrity of the electric grid”. 

Originally published at publicfinanceinternational.org

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