Report: Department of Energy recommends bail out of failing coal plants

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In a draft memo to be circulated on Friday, the Department of Energy (DOE) argues in favor of using a wartime rule called the Defense Production Act to bail out failing coal and nuclear plants, according to Bloomberg, which obtained a copy of the memo.

The memo suggests that the Energy Department could force grid operators to buy power or electric generation capacity from a list of pre-determined power plants for two years, “to forestall any future actions toward retirement, decommissioning or deactivation.”

During that time, the DOE would conduct a study of vulnerabilities in the US power grid system. The justification for using the Defense Production Act would be that keeping unprofitable power plants running is a matter of national security until the two-year vulnerability study is complete.

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Source: Ars Technica – Report: Department of Energy recommends bail out of failing coal plants