A legal battle over the future of the US electricity system is looming after the Trump administration shocked the industry with proposals for new subsidies for coal-fired and nuclear power plants. If implemented, the plan could mean the most radical shake-up of the market in decades. Rick Perry, the energy secretary, on Friday sent a proposal to the Federal Energy Regulatory Commission calling for payments for power plants that provide “essential energy and ancillary reliability services” — and defined these in a way that means only coal and nuclear generators are likely to qualify.
FT 1st Oct 2017 read more »
The Trump administration is taking advantage of an obscure 30-year-old statute to make good on a promise to help America’s ailing coal industry. Rick Perry is using an authority granted to him as U.S. energy secretary to call on the independent Federal Energy Regulatory Commission to change its rules and help coal and nuclear plants compete in wholesale power markets. Perry said he’s seeking to ensure dependable power plants recover “a fair rate of return.” Those capable of storing 90 days of fuel supplies at their sites, such as coal and nuclear generators, would be eligible.
Bloomberg 2nd Oct 2017 read more »