Nuclear

Four state agencies in New York are calling on FERC to better address the safety issues that officials claim were uncovered by an independent risk analysis of the Algonquin Incremental Market (AIM) pipeline’s proximity to a nuclear power plant in Westchester County.

New domestic natural gas-fired generation, along with some renewables, will replace the power supply lost with the retirement of 35 GW of coal-fired and nuclear generation plants over the next five years, according to Moody’s Investors Service.

None of the five commissioners appointed to FERC believe the kind of emergency exists that would warrant a federal directive typically reserved for wartime and severe grid impairments to bail out faltering coal and nuclear plants. The commissioners’ views emerged during an oversight hearing Tuesday before the Senate Committee on Energy and Natural Resources.

Moody’s Investors Service said owners of coal-fired power plants, as well as domestic coal producers, would likely benefit from a Trump administration proposal to subsidize struggling coal and nuclear power plants, but retail customers could see higher electric bills and wholesale power markets could also be placed at risk.

The Trump administration’s plan to order the nation’s grid operators to purchase electricity or power generation capacity from struggling coal and nuclear plants could eventually come before FERC, but wouldn’t present many problems at that stage, according to Chairman Kevin McIntyre.

Days after news broke that the Trump administration is reportedly considering extending a lifeline to struggling coal and nuclear power plants on national security grounds, two cabinet departments appear to be taking the proposed directive as bonafide marching orders.

In an unprecedented move, and a surprise for the oil and natural gas industry, the Trump administration is reportedly planning to order the nation’s grid operators to purchase electricity or power generation capacity from struggling coal and nuclear plants, citing national security.

FERC members told a House panel on Tuesday that an order it issued in January to address the reliability and resilience of the nation’s power grid was moving forward, but decisions made by states over the composition of their energy portfolios could further squeeze coal and nuclear power generators.

Department of Energy (DOE) Secretary Rick Perry told a House panel Thursday that new legislation from Congress, rather than a rarely invoked provision within the Federal Power Act (FPA), may be a more appropriate vehicle for helping to keep uneconomic coal and nuclear power plants running.