Utility Dive – The Trump administration is planning to bail out coal and nuclear plants at risk of closure under the authority of two seldom-used federal laws, according to a memo made public Friday.
Under the plan, the federal government would purchase electricity or generation capacity from the plants for two years using its power under Section 202 of the Federal Power Act and the Cold War-era Defense Production Act. Bloomberg first reported on the memo Thursday night.
It remains unclear whether President Trump has signed off on the 41-page memo, but critics say guaranteeing revenue for a large number of uneconomic generators could unravel wholesale power markets. The Federal Energy Regulatory Commission rejected a similar bailout proposal from the White House earlier this year.
Read more at Utility Dive.