Environmental Defense Fund today opposed a Department of Energy proposal to provide new revenues and guaranteed profits to the owners of inefficient, aging coal and nuclear power plants at the expense of American homeowners and businesses. The DOE’s proposal is currently being reviewed by the Federal Energy Regulatory Commission.
EDF’s filings – separately and with a coalition of environmental organizations – strongly oppose the DOE’s attempt to diminish, if not destroy, the integrity of competitive wholesale electricity markets through government intervention.
“At its essence, the Department of Energy’s coal bailout aims to create clear winners by sheltering coal and nuclear companies from competitive markets with profit guarantees. But everyone else loses. Americans would pay more on their electricity bills and suffer from dirtier air in return. Our electricity markets – and the companies that compete in it – would be undercut by blatant governmental interference.”
According to EDF analysis, under the DOE proposal the total operating costs that would be paid to eligible coal and nuclear resources could reach over $14 billion. The public health and environmental impacts associated with the proposal are also staggering, with preliminary EDF analysis finding the net incremental increase in carbon dioxide emissions could reach over 70 million tons annually. This equates to the annual greenhouse gas emissions for more than 13 million passenger vehicles.
- Jim Marston, Vice President, Clean Energy
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