The Electric Power Supply Association (EPSA), the trade group of owners of power plants urged President Donald Trump to reject the proposal made by power generator First Energy for providing cost support to nuclear and coal plants in the market.
The group informed the President that there is no crisis which requires the generator to request for subsidies. They warned that providing cost recovery to uneconomic generators would cause power prices to go up for the consumers. According to First Energy, without cost support for the power plants, the grid would face the risk.
EPSA was also against the bill passed last week to provide subsidies for the nuclear power plants in New Jersey. The bill allowed subsidies based on carbon-free power generation by the plants. EPSA wanted Gov. Phil Murphy to bar this bill. According to EPSA, providing subsidies for First Energy and nuclear power plants will raise the power price and grid will not get benefitted by it. EPSA warned of negative ramifications if the request of First Energy got approved. The regional grid operators and former energy regulators support the arguments of EPSA.
The Federal Energy Regulatory Commission has rejected a similar cost recovery plan proposed by DOE in January.