Posted on 10/03/2017 7:26:43 AM PDT by BenLurkin
The Department of Energy’s proposed rulemaking to cover the costs of baseload coal and nuclear generators could lead to an unraveling of wholesale power markets if adopted by the Federal Energy Regulatory Commission, energy regulators and industry analysts told Utility Dive.
“This would blow the market up,” former FERC Chairman Jon Wellinghoff, a Democrat appointed to the commission by President Bush in 2006, told Utility Dive. "And you can quote me on that."
On Friday, the DOE directed FERC to open a rulemaking proceeding to provide “full recovery of costs” for power plants that keep 90 days of fuel supplied onsite. DOE officials wrote that the Notice of Proposed Rulemaking (NOPR) would enhance the resilience of the nation’s electric system and “protect the American people from energy outages expected to result from the loss of this fuel-secure generation."
...
Coal and nuclear operators praised the proposal, saying it could enhance power system resilience by ensuring baseload generators threatened by retirement stay online. But much of the sector joined with the former FERC commissioners in criticizing the rule on Friday, saying it could increase customer costs and power sector pollution while actually doing little to enhance system resilience.
"It’s gonna be as expensive as hell," Wellinghoff said. "Expensive as it can be because we will be paying the full freight on coal and nuclear plants."
FERC is unlikely to take up the proposal as written, analysts and former regulators agreed, but regulators currently at the agency have indicated they plan to address plant compensation and reliability questions — making the NOPR the Trump administration's opening salvo in what is likely to be a long and contentious regulatory battle over the future of the fuel mix and competitive electricity markets.
(Excerpt) Read more at utilitydive.com ...
Blowing up the market means competing with the energy providers. Sounds like a good thing.
Another element of the Trump energy policy.
Stockpiles of fuel will be worthless after an EMP attack.
The possibility of EMP attack is not far fetched and the feds know it (well some of them do). They dither while Rome burns.
Also, the increasing centralization of the power grid makes it very vulnerable regardless of full stockpiles.
Neither of these more immediate weaknesses are being addressed. Heads in the sand, hoping nothing happens.
Stockpiles of fuel will still burn after an EMP attack, not worthless.
EMP is the scary external enemy they need to justify the desired federal grab over electrical distribution. The Feds want to run and manage the grid.
Simple as that.
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