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Sunday, December 17, 2017

Rick Perry Wants To Keep the Coal Fires Burning … And Help a Big Donor

Energy Department Puts Together a Scheme to Subsidize Obsolete Coal and Nuclear Plants 
By Sarah Okeson

Image result for trump and coalEnergy Secretary Rick Perry is working to make our children’s lives worse and our planet hotter by financially bailing out polluting coal companies.

Perry wants to keep aging coal and nuclear power plants operating and financially reward some plants that can keep three months of fuel on-site. 

This could push up electricity rates by as much as $3.8 billion a year through 2030.


“The Trump administration wants taxpayers to pay more for an earlier death,” said philanthropist Michael Bloomberg who has funded the Sierra Club’s Beyond Coal campaign to pressure coal plants to shut down.

Perry insists subsidies for our nation’s polluters are needed to help keep our power grid safe from extreme weather and terrorists. The Federal Energy Regulatory Commission could vote by Dec. 11 on the proposed rule.

“I think this administration is literally trying to bring coal back from the grave,” said Sen. Maria Cantwell (D-Wash.).

Perry’s push to prod the commission to approve the so-called Grid Resiliency Pricing Rule appears to be written to benefit Murray Energy. 

The climate-change-denying CEO, Robert Murray, and Murray Energy employees donated more than $115,000 to Perry’s failed 2012 presidential campaign, his second largest corporate donor, and donated more than $300,000last year to the Trump campaign.

Less than 25% of the nation’s coal and nuclear plants would qualify for the increased rates in the Energy Department proposal. Only four out of dozens of electricity markets in our country would be affected.

PJM Interconnection, the market that buys most Murray Energy coal, also benefits the most.  PJM is the nation’s largest wholesale electricity market with customers in 13 states.

“If you want to tax customers to do favors for friends, be honest about it,” said Nora Mead Brownell, a former FERC commissioner who was appointed by former President George W. Bush.

Wholesale competitive electric markets were created under former President George H.W. Bush to foster competition. The average retail price per kilowatt of electricity, adjusted for inflation, has dropped from 16 cents, including taxes, in 1992 to about 10 cents in 2016.

“Wholesale competition worked as intended, driving inefficient, high-cost generation out of the market,” said consultant Alison Silverstein.

Perry is fudging facts to try to justify raising rates. Perry says his plan would protect the grid from power outages caused by coal and nuclear power plants that close because they can’t compete with cheaper, cleaner wind and solar energy and natural gas.

But only 0.0007%, or 2,815 hours, of 3.4 billion customer-hours of major electricity disruptions from 2012 to 2016 was due to fuel supply problems. Severe weather caused many outages.

Silverstein helped write a report for Perry that said regulation isn’t a huge factor in closing coal and nuclear plants. Perry’s Energy Department rejiggered her report to bolster the case for help for Perry’s former campaign donors.

“Perry and his team are doing all the right things for the cause, and if it works, great!” Silverstein said. “If it doesn’t work, it’s someone else’s fault. I think that’s the raw political answer.”

ACTION BOX/What You Can Do About It

Call Rick Perry at 202-586-5000 to let him know your thoughts about subsidizing polluters who will make our planet hotter or write him at 1000 Independence Ave. SW, Washington, D.C. 20585. He is also on Twitter and Facebook.

Contact the FERC commissioners to urge them not to raise our electric rates to benefit outdated coal and nuclear plants. Chairman Neil Chatterjee is at 202-502-8852. Commissioner Cheryl LaFleur is 202-502-8961. Commissioner Robert Powelson is at 202-502-6481.  Commissioner Richard Glick is at 202-502-6530. You can also write the commissioners at Federal Energy Regulatory Commission, 888 1st St. NE, Washington D.C, 20426.

Donate to the Sierra Club’s Beyond Coal campaign to support closing outdated, polluting coal plants.