Firstenergy close to bankruptcy

Firstenergy, a major coal and nuclear utility in Ohio and Pennsylvania, is asking those state governments for subsidies to help it avoid bankruptcy. It’s biggest critics? Groups like the Sierra Club, which you might expect, but also the oil and gas industry.

Natural gas and renewable energy have been making up a larger amount of the country’s electric grid, eating into coal and nuclear power on wholesale markets. With that backdrop, FirstEnergy is also asking the Department of Energy to issue an immediate emergency order to PJM Interconnection, the grid operator for mid-Atlantic states, to provide “just and reasonable” compensation to its fleet of aging coal and nuclear power plants in order to keep them open…

“The Nation’s security is jeopardized if DOE does not act now to preserve fuel-secure generation and the diversity of supply…”

“FirstEnergy needs to stop misleading the public and government officials about the status of its power plants in Ohio and Pennsylvania,” said Todd Snitchler, Market Development Group Director for the American Petroleum Institute, in a statement. ”For FirstEnergy to cry wolf on the issue of grid reliability is irresponsible and is the company’s latest attempt to force consumers to pay for a bailout.

The collapse of the coal industry isn’t all that surprising, and anyone who has children or lungs should be glad. The possibility of nuclear going down with it is a little surprising. The idea of nuclear appeals to me at least a little bit, but it seems like the economics and keeping the plants up and running just isn’t working out. I wonder if this is just because most of our nuclear plants consist of obsolete, 50-year-old technology, or if nuclear really just will never be able to compete.

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