Many fossil fuel power plants across the country are no longer economic to operate year-round.
Regardless, plant owners continue to burn coal or fossil gas when there are cheaper options—namely renewables—because public utility commissions allow them to charge their customers higher rates to cover their losses.
In 2019 alone, even when gas prices were at record lows, utilities in the 20 states covered by two electric grid operators—the Midcontinent Independent System Operator (MISO) and Southwest Power Pool (SPP)—socked their ratepayers for an extra $117 million.
Regulators should stop utilities from forcing ratepayers to cover the cost of uneconomic gas-fired plants and remove the obstacles preventing renewable energy from lowering costs and cutting emissions. Likewise regulators should reject any plans to build new, uneconomic gas-fired power facilities and encourage electricity providers to replace their existing uneconomic gas-fired power facilities with economic alternatives, including renewable energy sources, storage, and energy efficiency programs.
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