March 5, 2018 Read More →

U.S. Coal Group Continues to Seek Grid Subsidies

S&P Global Market Intelligence:

Despite federal regulators’ rejection of a U.S. Department of Energy proposal to prop up financially struggling coal-fired power plants, the head of the American Coalition for Clean Coal Electricity still hopes that grid operators will change wholesale market rules to keep even more of those plants from retiring prematurely.

In a Feb. 23 interview, ACCCE President and CEO Paul Bailey said the DOE was “directionally right” in asking the Federal Energy Regulatory Commission to value power plants based on their ability to store fuel on-site as part of a September 2017 notice of proposed rulemaking.

Although FERC denied the request, ACCCE hopes that grid operators and FERC will consider rewarding the beneficial attributes of the coal-fired fleet as they evaluate possible reforms to competitive markets.

Bailey suggested that grid operators hold an auction or develop other market mechanisms for compensating energy resources based on their “fuel security” characteristics. “It makes a lot of sense to value a 70- or 80-day supply of coal on-site versus mostly just-in-time [generation] … and a lot of interruptible gas, [but] we’re not bashing gas,” Bailey said.

More ($): Coal group still pushing for market relief after DOE grid rule rejection

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