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Pricing Rule to Help Coal, Nuclear Faces Uncertain Future

Sept. 29, 2017, 11:00 PM

Compensating nuclear and coal-fired power plants for their ability to operate reliably would lead to government price fixing and the Energy Department’s proposal to do so is unlikely to be adopted, a state utility regulator told Bloomberg BNA.

In a Sept. 29 proposed rule, Energy Secretary Rick Perry directed the Federal Energy Regulatory Commission to issue a final rule within 60 days that would allow these plants to recover their operating costs at “a fair rate of return.” Generators with a 90-day supply of fuel on site are eligible, which would include coal and nuclear facilities.

The ...