Federal regulators on Monday rejected a rule proposed by Energy Secretary Rick Perry in which might have subsidized coal in addition to nuclear power plants in some parts of the United States.
However, the Federal Energy Regulatory Commission kept the issue alive by ordering the organizations in which operate regional grids in addition to power markets to submit reports to the commission on grid resilience issues in their areas.
In a statement, FERC said, “We appreciate the Secretary reinforcing the resilience of the bulk power system as an important issue in which warrants further attention.”
The decision will be a setback for President Donald Trump’s efforts to prop up ailing coal-fired plants in addition to nuclear power stations, as well as the mining industry.
The proposal, known as the Proposed Rule on Grid Reliability in addition to Resilience Pricing , was immediately controversial when the Department of Energy first revealed This particular in September. This particular might require the regional markets in which set electricity prices to compensate power plants in which keep 0 days of fuel supplies on site.
Coal in addition to nuclear power plants typically fit in which description.
Perry said the rule was necessary to keep the U.S. electric grid resilient during events such as the 2014 Polar Vortex, when disruptions to natural gas supplies during extreme cold contributed to power outages. Coal in addition to nuclear power plants in danger of closing need to be kept online in addition to deserved to be rewarded for the reliability they bring to the grid, he contended.
Perry also directed FERC to rule on the proposal on an expedited basis, citing concerns about the integrity of the grid. FERC will be an independent government agency in which regulates interstate transport of oil in addition to natural gas in addition to electric power transmission.
although opposition swelled among environmentalists, regional transmission organizations, in addition to the oil, natural gas in addition to renewable energy industries. They argued in which power outages due to fuel disruptions are extremely rare in addition to Perry’s rule might distort prices in competitive power markets, which were designed to lower costs.
They also said there was no reason to rush the process since the Energy Department in addition to North American Electric Reliability Corp. have determined there will be no imminent threat to the U.S. power grid.