America’s energy sector has reached an interesting crossroads.
After eight years of the Obama administration working to dismantle the nation’s coal fleet, the Trump administration has swept into office and upended the apple cart. Earlier this year, Energy Secretary Rick Perry commissioned a study to assess the health of America’s power grid. His subsequent report noted a sizable decline in America’s “baseload” power, and urged steps to improve the reliability of the nation’s electric grid.
Overall, Perry is advocating an “all of the above” mix for the nation’s power sector. And this is an eminently sensible position. But in attempting to shore up America’s power grid, Secretary Perry is facing criticism because he’s chosen to prioritize reliable, practical power generation. Significantly, his proposal could help to preserve 100 megawatts of Wisconsin’s coal capacity — a significant step for a state that generates 56 percent of its electricity from coal.
No doubt, rising natural gas production and a decade of crippling federal regulations have served to eliminate a substantial portion of America’s coal fleet. And bankruptcies and cost overruns have simultaneously hampered replacements for an aging nuclear industry.
But in response to such a stark problem, Secretary Perry has proposed that the Federal Energy Regulatory Commission allow some power plants to recover the cost of storing on-site fuel. Such fuel storage allows power stations to run non-stop during extreme weather. Typically, America’s utilities give priority to the lowest-cost energy option for power transmission. But Perry is urging a pricing mechanism that would value these plants for their ability to continually provide power during disruptive events like massive storms and frigid winters.
The bottom line is that coal and nuclear plants still produce 50 percent of the nation’s electricity. It’s a significant — but declining — share of the energy needed to ensure reliable electricity. Thus, Secretary Perry is simply taking a very real-world approach to a burgeoning problem.
Polling shows that 70 percent of voters favor a diverse mix of fuel sources to maintain grid reliability and affordable power. So rather than simply take coal and nuclear power plants offline, the Trump administration can support a more reliable electric grid by encouraging upgrades to existing facilities. These are important considerations for the coming decades, when an ever-growing nation will look to keep powering its schools, hospitals and infrastructure.
Secretary Perry is right to help ensure a continuation of the reliable and affordable power that undergirds America.
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