Quantcast
iStock

Picking Losers: Why Coal and Nuclear Interests Are Desperate for a Ratepayer Bailout

Without Energy Sec. Rick Perry's scheme to make utility customers buy more expensive electricity from aging, dirty and dangerous coal and nuclear plants, utilities plan to close 75 coal and nuclear units in the next three years, according to federal data compiled by the Environmental Working Group (EWG).

A new EWG report, Picking Losers, analyzes data from the Federal Energy Regulatory Commission (FERC) and the Energy Information Administration (EIA) showing that since 2009, solar power capacity has grown by a factor of 89 and wind power capacity has increased sixfold. But coal and nuclear capacity have declined or stagnated, as the rapidly declining cost of solar and wind power—among other factors, including the glut of natural gas and increased energy efficiency—are driving coal and nuclear plants out of the competitive wholesale market for electricity.


Despite the inexorable trend, Perry has ordered FERC to fast-track consideration of a proposed rule to require regional electricity suppliers to buy above-market-rate power from coal and nuclear plants, even when cheaper sources are available. And at the United Nations global warming conference that began this week, the Trump administration will promote coal and nuclear power as answers to climate change.

"The administration's attempt to prop up its friends in the coal and nuclear industries isn't just picking winners and losers, but picking energy sources that are already proven losers," said Grant Smith, EWG's senior energy policy advisor. "It's like trying to bring back the market for whale oil. Perry's absurd proposal could keep these dying industries on life support a bit longer, but the competition for America's energy future is over, and renewables have won."

Energy Innovation estimates Perry's proposal would cost ratepayers up to $10.6 billion a year. Up to 90 percent would go to 10 or fewer companies, such as FirstEnergy, which could get $500 million a year. To avoid bankruptcy, the Ohio utility is considering selling 13 struggling coal and nuclear plants.

In August, the Associated Press obtained a letter to a Trump aide from the CEO of Murray Energy, a major FirstEnergy fuel supplier, urging an emergency bailout. According to Politico, Murray and its PAC contributed $200,000 to President Trump's campaign.

Support for Perry's proposal is virtually nonexistent outside of the coal and nuclear industries.

An unprecedented coalition of energy industry groups, from the American Council on Renewable Energy to the American Petroleum Institute, filed a joint petition of opposition to the scheme. Congressional opposition is bipartisan, and Rep. Pete Olson, R-Texas, chair of a key House energy subcommittee, said the proposal would "jack prices up" and "hurt the consumer."

"Trump's decision to pull out of the Paris climate accord has made the U.S. an energy pariah to the rest of the world," said EWG President Ken Cook. "Perry's scheme is more madness that would not only further set back global efforts to curb carbon emissions, but force Americans to pay billions for dirtier air."

Show Comments ()
Sponsored
Animals
The turkey ranch in Sonora is where Diestel keeps its pasture-raised birds. Jeanne Cooper

Popular Diestel Turkey Sold at Whole Foods Tests Positive for FDA-Prohibited Drugs

Diestel Turkey, sold by Whole Foods and other retailers at premium prices, says on its website that its "animals are never given hormones, antibiotics or growth stimulants."

But Diestel Turkey samples tested by the U.S. Department of Agriculture (USDA) suggest otherwise, leading consumers to wonder: Can these companies be trusted?

Keep reading... Show less
Animals

Slaughter of 90,000 Wild Horses Could Proceed Despite 80% Objection From American Public

The American Wild Horse Campaign on Thursday harshly criticized Interior Sec. Ryan Zinke's appointment of Brian Steed, the former chief of staff for U.S. Rep. Chris Stewart (R-UT), as the acting director of the Bureau of Land Management (BLM) as dangerous and out of step with the wishes of the vast majority of Americans.

"Rep. Stewart is leading the charge to slaughter America's wild horses and burros over the opposition of 80 percent of Americans," said Suzanne Roy, AWHC Executive Director. "Putting his deputy at the helm of the agency charged with protecting these national icons is like putting the wolf in charge of the chicken coop."

Keep reading... Show less
Renewable Energy

Bright Idea: This Lamp Harvests Its Own Energy From Plants

Now that's green energy. Dutch product designer Ermi van Oers and her team are working on the first atmospheric lamp powered by living plants.

The Living Light does not require an electric socket. It can harvest its own energy through the photosynthetic process of the encased plant, which means the potential of this off-grid light source could be "huge," as Van Oers told Dezeen.

Keep reading... Show less
Climate

Landmark Youth Climate Lawsuit Heads to Federal Appeals Court

There has been a significant development in the constitutional climate change lawsuit so far successfully prosecuted by 21 youth plaintiffs: The Ninth Circuit Court of Appeals has decided to hear oral argument over whether the Trump administration can evade trial currently set for Feb. 5, 2018. Oral arguments will be heard before the Ninth Circuit Court of Appeals in San Francisco on Dec. 11 and can be watched on a live stream beginning at 10 a.m. PST.

Keep reading... Show less
Sponsored
Climate
Martin Schulz / Flickr

Pope Francis: These 4 'Perverse Attitudes' Could Push Earth to Its Brink

Pope Francis issued a strong message to negotiators at the COP23 climate talks in Bonn, Germany on Thursday, warning them not to fall into "four perverse attitudes" regarding the future of the planet—"denial, indifference, resignation and trust in inadequate solutions."

Francis, who has long pressed for strong climate action and wrote his 2015 encyclical on the environment, renewed his "urgent call" for renewed dialogue "on how we are building the future of the planet."

Keep reading... Show less
Climate
The Greenpeace ship Esperanza sits near the Statoil contracted oil rig Transocean Spitsbergen. Greenpeacce

Groups Sue Norway Over Failure to Protect Environment for Future Generations

By David Leestma

Greenpeace and the Nature and Youth environmental group opened a lawsuit this week over Norway's failure to abide by its constitutional obligation to safeguard the environment for future generations.

The lawsuit, which focuses on local environmental damage and the contribution that oil extraction will make to climate change, challenges 10 licenses issued by the Norwegian government for exploration in the Barents Sea. Given to Statoil, Chevron and other oil companies, the licenses violate Norway's constitution and the Paris agreement, according to the plaintiffs. Government lawyers claim the case is a publicity stunt that risks valuable jobs.

Keep reading... Show less
Sponsored
Food
Lia Heifetz of Barnacle Foods hauls kelp for salsa. Bethany Sonsini Goodrich

A Plea for Kelp: These Farmers and Chefs Want to Make Seaweed the Next Superfood

By Sarah Bedolfe

Summer in southeast Alaska is kelp season for the cofounders of Barnacle Foods, Lia Heifetz and Matt Kern. Each week, the pair watches the tides and weather, waiting for the right moment to cruise out to the abundant kelp beds offshore. They lean over the side of the boat and pull up the fronds and stalks, one piece at a time. As soon as they get back to shore, they start processing the day's harvest into a local delicacy: kelp salsa.

Salsa and Alaskan algae might seem like odd bedfellows, but for Barnacle Foods, it's a calculated decision. The kelp's savory notes make the salsa's flavor "a little more explosive," according to Kern. And the pairing is also a practical one. "Salsa is such a familiar food item," Heifetz said. It's "a gateway to getting more people to eat seaweed."

Keep reading... Show less
Popular
Lorie Shaull / Flickr

Massive Pipeline Leak Shows Why Nebraska Should Reject Keystone XL

About 210,000 gallons (5,000 barrels) of oil leaked Thursday from TransCanada's Keystone oil pipeline near Amherst, South Dakota, drawing fierce outcry from pipeline opponents.

The leak, the largest spill to date in South Dakota, comes just days before Nebraska regulators decide on whether its controversial sister project—the Keystone XL (KXL) Pipeline—will go forward.

Keep reading... Show less
Sponsored

mail-copy

The best of EcoWatch, right in your inbox. Sign up for our email newsletter!