, Columnist
This Coal Power Subsidy Is Nuts
A short-term gain for his political favorites would raise risks for the whole industry.
This article is for subscribers only.
Energy Secretary Rick Perry has hit upon a strategy to prevent blackouts and, coincidentally, subsidize struggling nuclear and coal-fired power plants. It's the squirrel strategy.
Perry sent a letter last week to the Federal Energy Regulatory Commission, directing it to come up with a rule that would change how electricity gets priced in America's unregulated wholesale power markets. Specifically, the Department of Energy wants plants that can store 90 days' worth of fuel onsite to be offered extra market compensation -- an effective subsidy.