coal subsidies

The Obscure Federal Agency That Soon Could Raise Your Electric Bill: 5 Questions Answered on FERC

Power lines

By Joshua D. Rhodes, University of Texas at Austin

Editor’s note: On or before Dec. 11, the Federal Energy Regulatory Commission is expected to take action on a controversial proposal by Energy Secretary Rick Perry that seeks to prevent noncompetitive coal and nuclear power plants from retiring prematurely. Depending on how such a rule is structured, analyses have estimated that it could cost ratepayers in affected regions up to several billion dollars yearly. Energy scholar Joshua Rhodes explains what FERC is and why it has so much power over energy markets and (indirectly) the prices consumers pay.

Subsidizing Coal and Nuclear Power Could Drive Customers off the Grid

Solar home

By Joshua M. Pearce, Michigan Technological University

Within the next month, energy watchers expect the Federal Energy Regulatory Commission to act on an order from Energy Secretary Rick Perry that would create new pricing rules for certain power plants that can store fuel on site to support grid resilience. This initiative seeks to protect coal-fired and nuclear power plants that are struggling to compete with cheaper energy sources.

Taking a More Comprehensive Look at Coal Subsidies

Earlier this month, Robert Murray, President and CEO of coal giant Murray Energy Corporation, sparred with Tesla founder Elon Musk on the issue of subsidies. Murray called Tesla a “fraud” for failing to achieve a profit despite benefitting from consumer-facing electric vehicle tax credits, and then Musk lobbed back that EVs get “pennies on the dollar” compared to coal.

We reported the exchange here on DeSmog, adding some background on how the coal industry and companies like Murray actually do benefit from a broad range of subsidies. Murray took exception, and sent the following note to the managing editor of DeSmog:

Murray vs. Musk: Coal CEO Calls Tesla a “Fraud," Doesn't Mention Subsidies for Failing Coal

On Monday, Robert Murray, President and CEO of coal giant Murray Energy Corporation, called Tesla Motors a “fraud” on CNBC, going on to bash the company for failing to yet turn a profit despite subsidies.

Tesla is a fraud. [It] has gotten $2 billion from the taxpayer and has not made a penny yet in cash flow. Here again, it’s subsidies,” Murray claimed.

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