Coal power company files for bankruptcy, asks Trump for bailout

[ABX]

Once again, coal country is begging the Trump administration for help.
The coal and nuclear divisions of Ohio power company FirstEnergy filed for Chapter 11 restructuring over the weekend, mere days after the company sent a letter to the Energy Department requesting emergency relief. They're seeking a bailout through a rarely-used section of federal law normally reserved for natural disasters or times of war.....

http://www.wfmz.com/news/coal-power-company-files-for-bankruptcy-asks-trump-for-bailout/724189518

[thackney]

https://www.utilitydive.com/news/firstenergy-asks-doe-for-emergency-action-to-save-pjm-coal-nuke-plants/520280/

FirstEnergy Solutions on Thursday asked the U.S. Department of Energy to issue an emergency order to provide cost recovery to coal and nuclear plants in the PJM Interconnection, saying market conditions there are a "threat to energy security and reliability."

FirstEnergy made the appeal under Section 202(c) of the Federal Power Act, which allows the Department of Energy to issue emergency orders to keep plants operating. The company Wednesday announced it would close three nuclear plants in PJM before the end of their operational lives.

Orders under 202(c) are typically used to ensure reliable power supply after sudden emergencies, not insulate uneconomic plants from market forces. A DOE assistant secretary last month said the agency "would never" use a 202(c) order for economic reasons, and lawyers say an approval of FirstEnergy's request would face immediate court challenges. ​

More at the link

[thackney]

This is going to bring back discussion of Rick Perry's plan from last year:

Energy Secretary proposes rule to make grid managers favor coal, nuclear
https://arstechnica.com/tech-policy/2017/09/energy-secretary-proposes-rule-to-make-grid-managers-favor-coal-nuclear/

Today, US Energy Secretary Rick Perry directed the nation’s federal grid regulator to create rules favoring coal, hydroelectric, and nuclear generators. The Notice of Proposed Rulemaking (NOPR) (PDF) stated that the Federal Energy Regulatory Commission (FERC) must order grid operators to increase how they value “reliability and resilience attributes” in energy generation.....

[Cyber Liberty]

This is going to bring back discussion of Rick Perry's plan from last year:

Energy Secretary proposes rule to make grid managers favor coal, nuclear
https://arstechnica.com/tech-policy/2017/09/energy-secretary-proposes-rule-to-make-grid-managers-favor-coal-nuclear/

Today, US Energy Secretary Rick Perry directed the nation’s federal grid regulator to create rules favoring coal, hydroelectric, and nuclear generators. The Notice of Proposed Rulemaking (NOPR) (PDF) stated that the Federal Energy Regulatory Commission (FERC) must order grid operators to increase how they value “reliability and resilience attributes” in energy generation.....

That was last year.  Did the rule pan out?

[thackney]

That was last year.  Did the rule pan out?

Last September, DOE proposed a similar cost recovery plan at the Federal Energy Regulatory Commission, targeting plants with a 90-day fuel supply. FERC, however, rejected the plan unanimously, writing that DOE and its allies — including FirstEnergy — did not prove that reliability is threatened, or that the cost recovery plan would improve conditions.

https://www.utilitydive.com/news/firstenergy-asks-doe-for-emergency-action-to-save-pjm-coal-nuke-plants/520280/

[Cyber Liberty]

Last September, DOE proposed a similar cost recovery plan at the Federal Energy Regulatory Commission, targeting plants with a 90-day fuel supply. FERC, however, rejected the plan unanimously, writing that DOE and its allies — including FirstEnergy — did not prove that reliability is threatened, or that the cost recovery plan would improve conditions.

https://www.utilitydive.com/news/firstenergy-asks-doe-for-emergency-action-to-save-pjm-coal-nuke-plants/520280/

Thanks!  Sounds like that was a great waste of taxpayer money!

[IsailedawayfromFR]

From what I see,  only half dozen states are impacted here.  One solution is for those states to offer to subsidize the company rather than asking all 50 states to do so.  Am tired of the federal govt being responsible for everything.

Also, several of these states are the home of the largest gas resource ever discovered in this country, the Marcellus/Utica.  Seems logical to assume the growth of that resource is a large part of the demise of a utility company that relies upon coal.

Why should taxpayers subsidize poor decision-making by that utility regarding switching over to gas-fired plants?  Why pick winners and losers?




https://www.firstenergycorp.com/about.html