Bailout Without Benefit: DOE's Proposed Rule Would Drive Up Costs and Do Nothing to Strengthen the Grid

Posted by Reports on Oct 25, 2017 4:28:00 PM

Publish Date: October 25, 2017

On Sept. 30, the U.S. Dept. of Energy announced a proposed rulemaking for the Federal Energy Regulatory Commission under its authority in Section 403 of the Federal Power Act to urge FERC to provide out-of-market financial support to uneconomic coal and nuclear power plants.

DOE's proposal would reward power plants with 90 days of onsite fuel supply (coal and nuclear plants) by exempting them from competition in wholesale electricity markets governed by FERC and give them full recovery of their costs and a guaranteed profit paid for by consumers. DOE gave FERC an accelerated timeline of 60 days to take final action on its proposal.

AEE's backgrounder analyzes the case before FERC, cites studies and other reports by industry experts that challenge DOE arguments, and outlines possible actions FERC could take.

Please fill out the form to download the backgrounder.

Topics: Wholesale Markets