Trump's Coal Revival Faces Setback

President Trump’s plan to revive the coal industry received a blow on Monday when the Federal Energy Regulatory Commission rejected a proposal by Energy Secretary Rick Perry to subsidize certain power plants. Perry’s proposal on grid reliance and reliance pricing recommended regional transmission organizations and independent system operators compensate plants that maintain 90-day fuel supplies against weather and emergency disruptions.

FERC agreed with critics that there is no evidence of a threat to the power grid that would justify Perry’s request and that RTO/ISO tariffs would increase the cost of electricity for consumers. The proposed subsidies would protect coal-fired and nuclear power plants that have the capability of on-site energy storage while putting natural gas and renewable energy sources such as wind and solar power at a financial disadvantage. Critics of the proposal said the plan would alter the competitive balance in the electricity markets and help only a handful of coal and nuclear companies.