Coal / Energy / Ohio Utility Bailouts

A U.S. coal bailout wouldn’t stop electric sector transition

A blatant misuse of the law and a phony national-defense argument

CLEVELAND — “It seems a waste of time and resources to call on a nearly 70-year-old defense law to rescue certain failing and outdated sectors of the energy industry. Yet that is precisely what has been proposed.

The Trump administration is floating a plan to use the Defense Production Act of 1950, enacted as a drastic national-security measure to be deployed in time of war, to prop upfailing coal and nuclear power plants. Invoking this act would be a blatant misuse of the law, which came into effect at the outset of the Korean War and with the intent of ensuring rapid mobilization of U.S. industries within the larger context of the Cold War.

And it would be costly for anyone who pays an electric bill.”

— David Schlissel, IEEFA’s director of resource planning analysis. A version of this column appeared this morning in USA Today.

read more