$3.1B annual cost estimated for fossil fuel plants DOE won't allow to retire
7 days ago
- #energy-policy
- #ratepayer-costs
- #fossil-fuels
- The U.S. Department of Energy's efforts to prevent fossil-fuel power plant retirements could cost ratepayers $3.1 billion annually by 2028.
- States with the highest potential costs include California ($389M), Texas ($183M), Colorado ($178M), Michigan ($171M), Louisiana ($164M), and Illinois ($161M).
- DOE has issued emergency orders to keep plants running, citing reliability concerns, but critics argue this inflates costs and undermines cleaner energy transitions.
- Michigan's attorney general challenged a DOE order to keep the J.H. Campbell plant running, calling the emergency determination unjustified.
- Grid Strategies estimates that if more plants seek subsidies to delay retirements, costs could rise to $5.9 billion annually.
- MISO, PJM, and CAISO face significant costs to keep aging plants operational, with MISO potentially incurring $1.1 billion annually by 2028.