FERC rejects Secretary Perry’s plan to subsidize coal and nuclear plants

Utility Dive reports that the Federal Energy Regulatory Commission on Monday rejected a proposal from the Department of Energy to subsidize to coal and nuclear plants, instead of turning to regional grid operators to assess how best to enhance the resilience of the power system.

The report continues that the five-member FERC voted unanimously to reject the proposed rule from Secretary of Energy Rick Perry to provide cost recovery for plants with onsite fuel supplies, writing that neither the DOE proposal nor comments in the record showed that existing market rules are unjust and unreasonable.

Adding that the decision notably rejected calls from coal and nuclear plant operators to enact short-term support for struggling power plants. A wide array of power sector critics argued that moving many generators into cost recovery could upend wholesale power markets.

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