Breaking: Trump administration officials are making plans to order grid operators to buy electricity from struggling coal and nuclear plants in an effort to extend their life, a move that would represent an unprecedented intervention into U.S. energy markets.
“Federal action is necessary to stop the further premature retirements of fuel-secure generation capacity,” says a 41-page draft memo obtained by Bloomberg and circulated before a National Security Council meeting on the subject Friday.
Memo outlines plan for DOE to direct operators to purchase electricity or generation capacity from facilities at risk of retirement. Government also would establish a "Strategic Electric Generation Reserve" w/ aim of promoting nat'l defense & maximizing domestic energy supplies.
The Energy Department would be embracing authority under 2 laws - the Federal Power Act & the Cold War-era Defense Production Act - to intervene temporarily while the gov't conducts a 2-year study of vulnerabilities. Read more from @business:
bloomberg.com/news/articles/…? @tictoc
bloomberg.com/news/articles/…? @tictoc
Administration officials are still deciding on what - if anything - to do. This memo represents the DOE's latest, most fully developed plan to intervene on behalf of coal & nuclear power plants, pitched to Trump's top national security advisers.
Memo here: bloomberg.com/news/articles/…
Memo here: bloomberg.com/news/articles/…
Trump just ordered his energy secretary to take immediate action to stem power plant closures in the name of national security, arguing that declining coal & nuclear electricity puts the nation's grid at risk.
bloomberg.com/news/articles/…
bloomberg.com/news/articles/…
