PJM Defends Plan to Favor Coal & Nukes, Driving Elec Rates Higher
Last week we told you about the hypocrisy of PJM Interconnection–the regional transmission organization (RTO) that operates the electric grid in all or parts of 13 states and the District of Columbia, including PA, OH and WV (see PJM Double Talk: Grid Operator Floats Plan to Favor Nukes & Coal). For nearly a year PJM has been saying the electric grid in our region is just fine using natural gas-fired electric plants. PJM said coal plants are shutting down, and nuclear plants are too expensive–don’t worry about it because gas has got our backs. And then last week they did a 180 degree about face and floated a plan that will “protect” coal and nuclear, which will result in electric customers paying 2-5% more for their electricity. MDN wasn’t the only outlet to notice the hypocrisy. Stung by criticism, PJM offered a defense of their so-called plan to protect (we’d call it favor) coal and nukes…
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In October the Pennsylvania Dept. of Environmental Protection held a hearing on a proposed 488-megawatt natural gas-fired electric plant in Birdsboro, in Berks County, near Philadelphia (see 
Yesterday Patrick McDonnell, Secretary of the Pennsylvania Dept. of Environmental Protection, went on a field trip and took a tour of the Panda Power Funds Hummel Station natural gas power plant site in Synder County. In February 2015, Panda announced a joint venture with Sunbury Generation to build a whopping 1,124-megawatt plant on the site of a recently retired coal-fired plant near Shamokin Dam in Snyder County (see 
We’re wondering if anyone else smells a tad bit of hypocrisy with this one. In March, PJM Interconnection–the regional transmission organization (RTO) that operates the electric grid in all or parts of 13 states and the District of Columbia (including PA, OH and WV), released a study saying even with fewer coal plants producing electricity, PJM’s electric supplies–using more and more natgas and renewables–will be just fine (see 
Last week’s big news that China committed to invest $83.7 billion in shale and petrochemical projects in West Virginia continues to reverberate (see 
We’re still reeling after yesterday’s announcement that China has agreed to invest $83.7 billion in the State of West Virginia–largely in shale and shale-related petrochemical projects (see 
Recently the profoundly biased mouthpiece for Big Green groups, PBS StateImpact Pennsylvania, ran an article about the political fallout around the construction of what will be Pennsylvania’s largest natural gas-fired electric generating plant, located near Scranton. Invenergy is currently building the Lackawanna Energy Center, a 1,480 megawatt plant in Jessup, PA that will cost “well over $1 billion” according to an exclusive MDN source working on the project. The PA Dept. of Environmental Protection (DEP) approved the plant in December 2015 (see 
The Federal Energy Regulatory Commission (FERC) has just escalated a much-needed war with the CORRUPT, Andrew Cuomo-directed Dept. of Environmental Conservation (DEC) in New York. We won’t recount the entire history, but the DEC had arbitrarily, after more than one year of review, ruled against issuing a federal water crossing permit for a tiny 7.8 mile pipeline Millennium needs to build from its main pipeline to an electric generating plant under construction in Orange County. The power plant is due to be completed in early 2018–and needs a fuel supply. In a monumental decision, FERC overruled NY DEC in September (see 
Last week an exclusive (invitation-only) event was held in Hershey, PA. It was the second annual Executive Energy Seminar: Regional Energy Markets 10 Years After Marcellus Shale event. This year’s theme (or the name for this year’s event), was “Decade of Disruption: Marcellus Shale and Regional Energy Markets.” The event was organized by John Hanger, a former Pennsylvania state utility regulator and former Secretary of the PA Dept. of Environmental Protection under Ed “Fast Eddie” Rendell. Hanger also previously served as Secretary of Policy and Planning under current Gov. Tom Wolf. Hanger assembled an impressive group, including FERC Commissioner Rob Powelson, FERC Chairwoman Gladys Brown, current Secretary of PA DEP Pat McDonnell, and PJM Interconnection president Andrew Ott (among many others). RTO Insider scored an invite and reported on what was said. Below we have a few select portions of their coverage, of interest to the MDN audience…
On Monday, experts said that closing the Indian Point nuclear plant on the Hudson River in New York will cause a loss of power to the local electric grid feeding New York City. However, they also said natural gas electric generation will fill the void left by the old and uneconomic nuke plant. That is, Marcellus Shale gas will save the day–yaaah! Entergy, the plant owner, is not all that thrilled that natural gas has won this round. An Entergy spokesman at the event could barely conceal his venom, warning gas is an “intermittent facility” with “consequences.” Oooooo. We’re scared. Of course it was nothing more than sour grapes that nukes can’t compete without massive increases for ratepayers to pay the owners of the nuke plants. We live in the U.S., not the U.S.S.R. We have free enterprise, capitalism, freedom and liberty–not a command-and-control economy. Entergy wasn’t the only one spouting nightmare scenarios when (not if) natural gas takes over. Antis don’t want low carbon, low cost natural gas either–because it’s an evil fossil fuel. Antis are looking for a solution, any solution, other than gas-fired power generation, to fill the void that will be left by Indian Point when it closes. Antis have even gotten behind a plan to dig up 333 miles of precious Mom Earth to lay a power cable from Canada through NY. To which we ask: What’s the difference in digging up the ground to lay a power cable or digging up the ground to lay a gas pipeline? Answer: None. Which points out antis’ rank hypocrisy on the issue of pipelines…
Several weeks ago U.S. Energy Secretary Rick Perry sent a letter to the Federal Energy Regulatory Commission (FERC) directing the agency to complete action on a “grid resiliency” pricing rule within 60 days. The proposed rule Perry proffered to FERC would put in place regulations that favor electric generating plants powered by coal and nuclear. That is, it would allow unprofitable ventures to pass along new costs, making them profitable–in the name of protecting the electric grid. The theory Perry (and by extension President Trump) subscribe to is that if the free market drives out coal and nuke plants, the electric grid would be “vulnerable” to far fewer sources to power it. If coal and nukes are all but gone, and all of sudden there’s a natural gas shortage, or prices spike for natural gas, it would endanger the electric supply in this country. On one side of the argument are those who believe the free market sometimes needs a helping hand (via regulation), and on the other those who believe the free market will sort it all out and we are not vulnerable. It’s no surprise that the coal and nuclear lobbies are celebrating Perry’s action, and the oil & gas lobby along with electric grid operators, are not (see 
It’s not supposed to work this way. Wednesday evening a “public meeting” was held in Albany, NY to share details about construction of a “state-of-the-art, locally-sourced mini-power grid” that will connect to the statewide electric grid but will also be able to operate independently, to power the Empire State Plaza in Albany–a complex of buildings in downtown Albany housing much of New York State government (see 
Several weeks ago U.S. Energy Secretary Rick Perry sent a letter to the Federal Energy Regulatory Commission (FERC) directing the agency to complete action on a “grid resiliency” pricing rule within 60 days. The proposed rule Perry proffered to FERC would put in place regulations that favor electric generating plants powered by coal and nuclear. That is, it would allow unprofitable ventures to pass along new costs, making them profitable–in the name of protecting the electric grid. The theory Perry (and by extension President Trump) subscribe to is that if the free market drives out coal and nuke plants, the electric grid would be “vulnerable” to far fewer sources to power it. If coal and nukes are all but gone, and all of sudden there’s a natural gas shortage, or prices spike for natural gas, it would endanger the electric supply in this country. On one side of the argument are those who believe the free market sometimes needs a helping hand (via regulation), and on the other those who believe the free market will sort it all out and we are not vulnerable. It’s no surprise that the coal and nuclear lobbies are celebrating Perry’s action, and the oil & gas lobby is not. The largest grid operator in the U.S. is PJM Interconnection, which covers all or parts of DE, IL, IN, KY, MD, MI, NJ, NC, OH, PA, TN, VA, WV, and Washington, DC. The head of PJM has weighed in on the resiliency debate. He told FERC that Perry’s plan to prop up coal and nuclear is not necessary–that PJM is just fine without it…
It seems like since Donald Trump was elected, the far-left loons of the Democrat Party have become unhinged. Nowhere is that more apparent than New York State, with it’s corrupt governor, Andrew Cuomo. When it comes to oversight of the nation’s electric grid, and interstate pipeline infrastructure, the law is clear: The federal government, specifically the Federal Energy Regulatory Commission, is numero uno. Individual states cannot just willy-nilly decide they will horn in on how energy companies are incentivized–and they cannot use regulations to change the nature of power generation within their borders, because of the interconnected nature of electric power. Yet that is precisely what the lawless Cuomo is attempting to do in the Empire State. Via the NY Public Service Commission, Cuomo has set up a program called the Zero Emissions Credits (ZEC) program to subsidize nuclear power at the expense of fossil fuels, like natural gas. He’s trying to make it uncompetitive and expensive for natural gas to generate electricity in the state. An industry group sued to overturn ZEC, but a liberal judge for the US District Court for southern New York stuck up for Cuomo’s cockamamie plan (no surprise there). The case has been appealed and the Natural Gas Supply Association and American Petroleum Institute filed a friend-of-the-court brief supporting the appeal against ZEC. It’s a loooong brief–40 pages. We have it below…