Trump’s bid to support coal could cost ratepayers billions, report finds – JS
By Alex Brown, Stateline.org
An independent analysis commissioned by several environmental groups warns that mandates from the Trump administration to preserve aging coal plants could lead to a significant increase in energy costs.
According to a report from Grid Strategies, a power sector consulting firm, orders from the U.S. Department of Energy to save coal plants from retirement could potentially cost ratepayers over $3 billion per year. This analysis was conducted on behalf of Earthjustice, Environmental Defense Fund, Natural Resources Defense Council, and Sierra Club.
Despite federal officials claiming that these coal plants need to remain operational to prevent blackouts, power plant owners and state regulators had previously planned their closures due to economic viability and reliability concerns.
The Grid Strategies analysis found that the DOE mandates override well-informed decisions, resulting in increased electric bills for households and businesses, and undermining the competitiveness of U.S. factories and data centers.
As coal plants across the country struggle to compete with cheaper renewable energy sources and natural gas, the cost of keeping them operational is becoming increasingly unsustainable. A 2023 analysis by Energy Innovation revealed that the majority of existing U.S. coal plants are more expensive to operate than transitioning to local wind, solar, and energy storage resources.
Despite this trend, Trump’s administration has intervened to keep a retiring coal plant in Michigan and an oil and gas plant in Pennsylvania online. The Grid Strategies report suggests that if all fossil fuel plants slated for retirement were mandated to remain operational by 2028, the annual cost to ratepayers would exceed $3.1 billion.
Furthermore, the report indicates that Trump’s actions could create a “perverse incentive” for plant owners to claim closure in order to receive federal intervention, ultimately leading to an additional $5.9 billion per year in ratepayer costs to keep the aging fossil fuel fleet operational. States like California, Texas, and Colorado would experience the highest increases in electricity bills.
Stateline reporter Alex Brown can be reached at abrown@stateline.org.
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