Energy Department proposes change to electricity pricing that could boost coal, nuclear plants

[IsailedawayfromFR]

The U.S. Department of Energy on Friday proposed a rule that would change the way regional power markets price electricity, potentially bolstering ailing coal and nuclear plants.

The rule would require the organizations to factor in certain characteristics of coal-fired and nuclear power generation when they set prices for electricity. The sources, known as baseload, provide steady, uninterrupted power, but have lost market share to natural gas and renewable energy in recent years.

The rise of these energy sources, especially solar and wind power, has raised concerns in some circles about the reliability of U.S. power generation. Energy harvested by wind turbines and solar panels provides intermittent power, meaning it is only available when the wind blows and the sun shines.

https://www.cnbc.com/2017/09/29/energy-dept-proposes-power-pricing-that-may-boost-coal-nuclear-plants.html

Now if Perry will cut the renewable subsidies, the market will be reflected much better.

[Joe Wooten]

Now if Perry will cut the renewable subsidies, the market will be reflected much better.

 

[thackney]

Now if Perry will cut the renewable subsidies, the market will be reflected much better.

Looks like he is proposing more subsidies:

Rick Perry just proposed sweeping new steps to help struggling coal and nuclear plants
https://www.washingtonpost.com/news/energy-environment/wp/2017/09/29/rick-perry-proposes-sweeping-new-moves-to-support-coal-and-nuclear-plants/?utm_term=.e0a64ad2736d
September 29, 2017

...Perry announced the Energy Department would provide $3.7 billion in loan guarantees to three Georgia utilities struggling to complete a pair of nuclear reactors at the Alvin W. Vogtle generating plant. These loan guarantees come on top of $8.3 billion in loans the department has already given to the project, but they still might fall short of what will be required to complete the costly reactors.

The nuclear project has been running far over-budget and behind schedule, and the utilities have been scrambling to come up with financing after the main engineering company, Westinghouse, declared bankruptcy earlier this year....

...Perry also moved Friday to help nuclear and coal plants competing in regional electricity markets. Citing his department’s recent, contested study about the workings of the electric grid, Perry asked the independent Federal Energy Regulatory Commission, or FERC, to adopt new regulations that would ensure coal and nuclear plants that add to the grid’s reliability can “[recover] fully allocated costs and thereby continue to provide the energy security on which our nation relies.

”Perry’s letter to FERC, and the proposed regulation, argue these so-called “baseload” plants provide critical stability and reliability to the electric grid and should be compensated accordingly. They cite not only the department’s recent grid study, but also the recent hurricane disasters afflicting the United States and power outages during the 2014 Polar Vortex event....

[IsailedawayfromFR]

Looks like he is proposing more subsidies:

Rick Perry just proposed sweeping new steps to help struggling coal and nuclear plants
https://www.washingtonpost.com/news/energy-environment/wp/2017/09/29/rick-perry-proposes-sweeping-new-moves-to-support-coal-and-nuclear-plants/?utm_term=.e0a64ad2736d
September 29, 2017

...Perry announced the Energy Department would provide $3.7 billion in loan guarantees to three Georgia utilities struggling to complete a pair of nuclear reactors at the Alvin W. Vogtle generating plant. These loan guarantees come on top of $8.3 billion in loans the department has already given to the project, but they still might fall short of what will be required to complete the costly reactors.

The nuclear project has been running far over-budget and behind schedule, and the utilities have been scrambling to come up with financing after the main engineering company, Westinghouse, declared bankruptcy earlier this year....

...Perry also moved Friday to help nuclear and coal plants competing in regional electricity markets. Citing his department’s recent, contested study about the workings of the electric grid, Perry asked the independent Federal Energy Regulatory Commission, or FERC, to adopt new regulations that would ensure coal and nuclear plants that add to the grid’s reliability can “[recover] fully allocated costs and thereby continue to provide the energy security on which our nation relies.

”Perry’s letter to FERC, and the proposed regulation, argue these so-called “baseload” plants provide critical stability and reliability to the electric grid and should be compensated accordingly. They cite not only the department’s recent grid study, but also the recent hurricane disasters afflicting the United States and power outages during the 2014 Polar Vortex event....

Perry appears to be in the role of picking winners and losers, to paraphrase the words you commonly use.

What was the 2014 Polar Vortex event anyway other than just a weather pattern that periodically occurs? 

Is Perry a Climate Alarmist now?  If he is, I sure don't want him spending my money on his pipe dreams.

[thackney]

Perry appears to be in the role of picking winners and losers, to paraphrase the words you commonly use.

What was the 2014 Polar Vortex event anyway other than just a weather pattern that periodically occurs? 

Is Perry a Climate Alarmist now?  If he is, I sure don't want him spending my money on his pipe dreams.

Perry has several conservative positions.  But in my opinion, he still sees government as a probable solution instead of recognizing that good intentions don't lead to real government solutions to individual problems.  He does best when he remembers that government is best when it gets out of the way.  But he does sometimes forget.

[kidd]

Looks like he is proposing more subsidies:

...Perry announced the Energy Department would provide $3.7 billion in loan guarantees to three Georgia utilities struggling to complete a pair of nuclear reactors at the Alvin W. Vogtle generating plant. These loan guarantees come on top of $8.3 billion in loans the department has already given to the project, but they still might fall short of what will be required to complete the costly reactors.

The nuclear project has been running far over-budget and behind schedule, and the utilities have been scrambling to come up with financing after the main engineering company, Westinghouse, declared bankruptcy earlier this year....

A loan or a loan guarantee is not a subsidy.
It has to be paid back.

[thackney]

A loan or a loan guarantee is not a subsidy.
It has to be paid back.

If it is a financial benefit not equally provided to all competing technologies.  It is a subsidy.

[kidd]

If it is a financial benefit not equally provided to all competing technologies.  It is a subsidy.

That's Wikipedia talking.
It is a  financial benefit not equally provided to all competing technologies in that collateral does not need to be established, but it is not a subsidy

Merriam-Webster states it as follows:

Definition of subsidy
 
plural subsidies

:a grant or gift of money: such as
 
   a :a sum of money formerly granted by the British Parliament to the crown and raised by special taxation
   b :money granted by one state to another
   c :a grant by a government to a private person or company to assist an enterprise deemed advantageous to the public

[IsailedawayfromFR]

That's Wikipedia talking.
It is a  financial benefit not equally provided to all competing technologies in that collateral does not need to be established, but it is not a subsidy

Merriam-Webster states it as follows:

I can offer that it is a clear financial benefit which is tantamount of picking winners and losers, a role the federal government should not be involved in.

Also, there is no guarantee it will be paid back, aka Solyndra

[thackney]

That's Wikipedia talking.
It is a  financial benefit not equally provided to all competing technologies in that collateral does not need to be established, but it is not a subsidy

Merriam-Webster states it as follows:

Play all the word games you want.  Tax Payer dollars to benefit one competing technology over another.  Probably to be paid back.  Definitely at costs lower than the market.

Subsidy.