We take electricity for granted until something causes us to lose power for a few hours, or perhaps even a few days. Losing power is a very inconvenient reminder of why we need an electric power grid that is both reliable — that is, having an adequate supply of electricity — and resilient — that is, responsive to extreme events that interrupt power.
Utilities have done a good job of ensuring reliability. But now, there is a lot of discussion about resilience because of man-made threats to the grid, such as cybersecurity, and natural challenges, such as extreme weather.
The nation’s fleet of coal-fueled power plants is critical to this discussion because the fleet helps make the electric grid both reliable and resilient. Also, the coal fleet helps keep electricity prices affordable. Forty-eight states rely on coal for electricity. However, more than 600 coal-fueled electric generating units are closing. These closures are equivalent to shutting down the combined electricity supplies of Indiana, Ohio, Pennsylvania, and West Virginia.
There are several reasons for these closures. Some, like low natural gas prices, are understandable. Others, like government policies and skewed energy markets, are not good reasons at all.
The Department of Energy, the North American Electric Reliability Corporation, and other experts have raised concerns about the continued retirement of coal-fueled and nuclear power plants which, between them, provide roughly half the nation’s electricity. One of their concerns is whether the electric grid can be resilient in the face of “high impact low frequency events” without fuel-secure coal and nuclear plants.
The Federal Energy Regulatory Commission, which regulates electricity markets in much of the U.S., is collecting information to evaluate the resilience of the grid. It’s unclear how long the evaluation will take and what steps FERC and other policymakers might take as a result of the evaluation. Based on past experience, it’s likely this exercise could take a while. Meanwhile, closures will continue. And these closures are irreversible — once coal-fueled power plants are closed, they will not be reopened.
So it makes sense to slow if not stop these closures at least temporarily until FERC, NERC, and other policymakers decide whether more closures will be a big problem.
Recently, Congressman Larry Bucshon, R-Ind., introduced the Electricity Reliability and Fuel Security Act to provide a temporary federal tax credit to help preserve at least some of the nation’s remaining coal fleet until FERC, grid operators, and other policymakers decide what steps are necessary to ensure the power grid is both reliable and resilient. The tax credit would offset a small portion of the expenses necessary to operate and maintain coal-fueled power plants that qualify for the credit. It would last for only five years, compared to 40 years of tax subsidies the federal government has provided for renewable energy sources.
Electricity is what makes our modern life possible. Also, it’s important to get this right. Congress should pass the Electricity Reliability and Fuel Security Act before it’s too late.
Paul Bailey is the president and CEO of the American Coalition for Clean Coal Electricity, the only national trade organization whose sole mission is to advocate at the federal and state levels on behalf of coal-fueled electricity and the coal fleet.
