By Frank Andorka, Senior Correspondent
So apparently the bailout of nuclear and coal plants is still a thing that is under consideration, so I have to keep writing about it. This time, there’s a new study out that says the new bailout is going to cost $34 billion – that’s B-illion, with a “b” – to implement. When there are more competitive solutions like solar and wind on the open market.
Are we tired of all the winning yet?
The Houston Chronicle reported today on the study, which was prepared for pro-solar advocacy group Advanced Energy Economy by the The Brattle Group, which the newspaper points out is opposed to the bailout plan (as are most Americans, based on all the support solar and wind get in all of the polls, Katie). I’ve included the entire report below, and it is certainly worth reading in its entirety. But I’ll post a couple of highlights from the executive summary to whet your appetite:
- “Current and likely future wholesale market conditions will continue to add pressure on some coal and nuclear plants to retire even if a financial support mechanism is put in place.”
Damn that INVISIBLE HAND! It seems that no matter how much Donald Trump and Rick Perry want to prop up these failing plants, Adam Smith’s Hand will come along to keep them failing.
- “We conservatively estimate that cost-of-service recovery (including embedded capital) could at least double the policy cost to between $20 and $35 billion per year.”
Well, now isn’t THAT a lovely thought? So we’re going to throw good money after bad and STILL not be able to save the coal jobs Trump promised.
And as for the nuclear side of things…I have two nuclear plants built in the 1970s and 1980s that are STILL being paid off by me and my fellow ratepayers. Exactly how long are we planning these bailouts to last? And aren’t these the same government officials who keep telling us we have to reduce spending so we don’t leave an enormous debt burden to our children? Where is that restraint now?
This bailout is the same boondoggle it has always been, a giveaway to the monopoly utilities (another instance of cognitive dissonance that nearly makes my head explode, but that’s a discussion for another day) and their wealthy investors, while your average taxpayer and ratepayer get screwed. Tell me again the one about how you love the free market and how the government shouldn’t be picking winners and losers?
To hell with the lotta ya.
More:
FERC Commissioners Tell Senate: Coal, Nuke Bailout Unnecessary
Brattle_AEE_Final_Embargoed_7.19.18