Republican senator questions coal and nuclear bailout plan
WASHINGTON — Plans by the Department of Energy to bail out the financially struggling coal and nuclear power sectors to stop more plants from closing drew criticism from Republicans and Democrats alike Tuesday on Capitol Hill.
Sen. Lisa Murkowski, the powerful Republican chairman of the Senate Energy and Natural Resources Committee, said she was concerned about moves by the Department of Energy to prop up coal and nuclear plants, as Secretary Rick Perry comes under increasing pressure to intervene on their behalf from President Donald Trump, a champion of the coal industry.
“In my view, (the Federal Energy Regulatory Commission) should be pointing the way on policy improvements that address grid vulnerabilities, while reaffirming our commitment to competition in wholesale power markets,” Murkowski of Alaska said. “We must increase the light and lower the heat in policy debates.”
The comments came during a Senate oversight hearing to examine FERC’s approach to overseeing the nation’s energy infrastructure, with all five commissioners testifying. But taking center stage was the White House’s unprece-
dented move toward invoking national security powers to manage the nation’s power grid — on the grounds the closure of coal and nuclear plants could lead to widespread blackouts.
Sen. Maria Cantwell, DWash., ranking Democrat on the committee, recalled Perry’s plan last year to have FERC raise rates paid to coal and nuclear plants, which she criticized as a “radical proposal.” FERC, an independent federal agency, rejected Perry’s proposal.
“Not only is the underlying policy wrong,” Cantwell told the FERC commissioners, “but it is a threat on your independence and oversight, to be directed this way.”
FERC is in the middle of a review of the power grid to see what effect the growing number of coal and nuclear plant closures might have. Those power plants store fuel on-site and regulators are examining whether the influx of new natural gas plants and solar and wind farms, which rely on pipelines and weather to operate, provide the same reliability to the grid. The administration has argued that natural gas and renewable generators are more vulnerable to cyberattacks and natural disasters.
But the White House has indicated it’s not willing to wait for FERC to complete the review. Earlier this month, Trump ordered Perry to move ahead, telling him to “prepare immediate steps” to stop further coal and nuclear plant closures.
Under questioning from senators Tuesday, some FERC commissioners expressed doubts about the tack taken by the White House. Commissioner Robert Powelson said such drastic government intervention could throw what are supposed to be deregulated power markets into chaos.
“I’m a little concerned about the narrative that’s being put out there,” Powelson said. “We’re going to need all these resources, but I don’t think it’s appropriate to put FERC in the arena of creating moral hazards in these markets. These markets are working hyper-efficiently.”
Other commissioners warned that while the shift from coal and nuclear power has not caused problems with reliability, there were no guarantees.
“We shouldn’t assume that good fortune will continue,” Commissioner Neil Chatterjee said. “It’s important we and our partners in federal government remain vigilant in ensuring the reliability of our bulk power system.”
If FERC commissioners found the shift away from coal and nuclear power risked increasing the number of blackouts, they could adjust the federal policies that govern the nation’s wholesale power markets to aid coal and nuclear. With pressure from the White House increasing, Murkowski urged the commissioners to move quickly to determine a policy.
“It is critical for you all to engage,” she said. “Frankly, as one concerned about this issue for years now, I find it it unfortunate that prior commissions did not lead more effectively.”