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PJM Interconnection CEO assails Perry plan to prop up coal, nuclear

Published 10/24/2017, 03:23 PM
© Reuters.  PJM Interconnection CEO assails Perry plan to prop up coal, nuclear
XOM
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APC
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DVN
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  • The head of PJM Interconnection, the biggest grid operator in the U.S., wants regulators to reject Energy Secretary Perry’s plan to prop up ailing coal and nuclear plants, calling it "unworkable" and "discriminatory."
  • "I don’t know how this proposal could be implemented without a detrimental impact on the market," says Andrew Ott, CEO of PJM, which manages competitive wholesale power markets in more than a dozen states and serves more than 65M people.
  • Hundreds of comments from energy companies poured in yesterday, the initial deadline to weigh in on Perry’s proposal; Exxon Mobil (XOM +0.3%), Anadarko Petroleum (APC +0.2%) and Devon Energy (DVN +0.6%) were among producers stressing the reliability and low cost of natural gas, while the Solar Energy Industries Association warned that coal and nuclear plants are not immune to unexpected outages.
  • FirstEnergy (FE -0.6%), which operates several coal-fired plants in the PJM market, filed comments in support of Perry’s plan, saying coal and nuclear retirements would put the electric grid at risk.
  • ETFs: XLU, TAN, UTG, KOL, VPU, IDU, GUT, BUI, KWT, FUTY, RYU, UPW, FXU, SDP, FUGAX, JHMU, UTLF
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