Coal / Energy

PJM changes would help subsidized coal, nuclear compete on market

Photo by Matthew Henry / Unsplash

COLUMBUS — “Illinois already has one subsidy plan in place that could benefit from the new PJM proposal. The state’s plan subsidizes nuclear power and is currently being challenged at the Seventh Circuit Court of Appeals.

‘Subsidies are contagious,’ Bowring said. ‘If one subsidy program is permitted to undermine the PJM capacity market, others will follow.’

Ohio lawmakers are debating bills to subsidize coal and nuclear power plants, including FirstEnergy’s Davis-Besse and Perry nuclear power plants and two 1950s-era coal plants. Ohio regulators have also approved payments to bolster utility credit ratings, which could potentially be used to subsidize generation operations.

‘Ohio’s electric utilities continue to make a money grab for subsidies in PUCO cases and legislation to separate Ohioans from their hard-earned money. That needs to end,’ said spokesperson Dan Doron at the Office of the Ohio Consumers’ Counsel.

Although the agency is waiting for more details on the PJM proposal, Doron expressed concern after a briefing from Bowring about the plan. ‘It will be deeply disappointing if PJM uses its electric markets to subsidize inefficient, aging coal and nuclear plants at the expense of millions of consumers,’ Doron said.”

— Kathianne M Kowalski, Midwest Energy News

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