Crain's editorial: Power failure
Originally Published: December 3, 2017 4:15 AM Updated: 12/3/2017
The Republican tax plan isn't the only piece of bad economic policy coming out of Washington that's tilted dramatically in favor of big donors and corporate interests.
As Bloomberg put it in a story last week, President Donald Trump "is on the verge of subsidizing coal plants that would otherwise be driven out of business by cheaper, cleaner natural gas." Driving a plan due out Dec. 11 "that would leave consumers footing a potential multibillion-dollar bill" is Neil Chatterjee, chairman of the Federal Energy Regulatory Commission.
Chatterjee told Bloomberg that his plan would be "the most significant proposed change to market rules in decades," but that's only true in scope, not creativity. Coal, as well as nuclear, plants "would collect monthly payments from grid operators to keep them in the black, regardless of how much energy they generate," the news service said. And where would those payments come from? Electricity customers, primarily in the Midwest.
Reviving the coal business was a central theme of Trump's 2016 presidential campaign. Elections indeed have consequences, and this plan is one of them.
Coal magnate Robert Murray, owner of Murray Energy Corp. in St. Clairsville and a big Trump donor/supporter, is pushing the bailout plan hard. Akron's FirstEnergy Corp., beset by financial challenges in its coal and nuclear operations, stands to be a major beneficiary. Indeed, Bloomberg noted that more than 80% of the coal payments proposed in the plan would go to five companies, including FirstEnergy.
Last March, in an editorial on FirstEnergy's desire for "zero emission credits" for nuclear plants in its home state, we noted, "The addiction to subsidies is not serving Ohio residents well, as they continue to prop up old power-generation sources at the expense of fully committing to development of renewable energy."
The same is true here. This emergency lifeline for coal, paid for by consumers, is in no one's long-term interest.
Use of editorial content without permission is strictly prohibited. All rights Reserved 2018 www.crainscleveland.com
Crain's editorial: Power failure
Originally Published: December 3, 2017 4:15 AM Updated: 12/3/2017
The Republican tax plan isn't the only piece of bad economic policy coming out of Washington that's tilted dramatically in favor of big donors and corporate interests.
As Bloomberg put it in a story last week, President Donald Trump "is on the verge of subsidizing coal plants that would otherwise be driven out of business by cheaper, cleaner natural gas." Driving a plan due out Dec. 11 "that would leave consumers footing a potential multibillion-dollar bill" is Neil Chatterjee, chairman of the Federal Energy Regulatory Commission.
Chatterjee told Bloomberg that his plan would be "the most significant proposed change to market rules in decades," but that's only true in scope, not creativity. Coal, as well as nuclear, plants "would collect monthly payments from grid operators to keep them in the black, regardless of how much energy they generate," the news service said. And where would those payments come from? Electricity customers, primarily in the Midwest.
Reviving the coal b
usiness was a central theme of Trump's 2016 presidential campaign. Elections indeed have consequences, and this plan is one of them.
Coal magnate Robert Murray, owner of Murray Energy Corp. in St. Clairsville and a big Trump donor/supporter, is pushing the bailout plan hard. Akron's FirstEnergy Corp., beset by financial challenges in its coal and nuclear operations, stands to be a major beneficiary. Indeed, Bloomberg noted that more than 80% of the coal payments proposed in the plan would go to five companies, including FirstEnergy.
Last March, in an editorial on FirstEnergy's desire for "zero emission credits" for nuclear plants in its home state, we noted, "The addiction to subsidies is not serving Ohio residents well, as they continue to prop up old power-generation sources at the expense of fully committing to development of renewable energy."
The same is true here. This emergency lifeline for coal, paid for by consumers, is in no one's long-term interest.
Use of editorial content without permission is strictly prohibited. All rights Reserved 2018 www.crainscleveland.com