Signature Sponsor
Trump's Coal Bailout Moves to the Back Burner

 

 

By John Siciliano


October 6, 2018 - President Trump’s plan to save uneconomic coal and nuclear plants is showing signs of being relegated to a backburner priority, especially in the wake of conservative, free-market groups lashing back against it, say industry sources.


“Last I heard this week the bailout push is on the backburner,” Devin Hartman, the former head of electricity policy at the free-market R-Street Institute, told the Washington Examiner. “The [White House] has pumped the breaks on it as conservative groups have come to strongly oppose it.”


Hartman is the incoming president and CEO of the Electricity Consumers Resource Council, representing large industry electricity users, which is part of an industry coalition that opposes the Trump grid plan to essentially provide subsidies to coal-fired and nuclear power plants.


Other industry sources have said recently that the White House has also been struggling with the legal justification for the plan, as well as questioning whether there is a real need for the plan to make the grid more resilient.


The White House did not return emails to respond to the idea of the grid plan being on hiatus.


Secretary of Energy Rick Perry told a roundtable of reporters last month that his agency has completed all its work on the plan, and that it was now up to the White House to make a decision.


Other industry sources have said recently that the White House has also been struggling with the legal justification for the plan, as well as questioning whether there is a real need for the plan to make the grid more resilient.


The White House did not return emails to respond to the idea of the grid plan being on hiatus.


Secretary of Energy Rick Perry told a roundtable of reporters last month that his agency has completed all its work on the plan, and that it was now up to the White House to make a decision.


PJM is proposing a way to balance out the cost of subsidies by limiting their price distorting-effects. The same should apply to a federal subsidy.

 

“Federal subsidies should be subject to the same mitigation that the state subsidies are, because it’s causing the same distortion in the market,” said Bagot.