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Energy Subsidies
FERC Foils Perry’s Plan to Coddle Coal

The Trump administration’s plan to help struggling coal producers hit a major roadblock this week.

Published on: January 10, 2018
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  • I can’t believe that the Secretary of the Department of what was the department’s name anyway proposed under false pretenses a poorly thought-out rule that had the goal of subsidizing specific business owners to the detriment of the country as whole. Such things only happen in banana republics in South America, not in the the United States.

  • Tom Scharf

    Somehow subsidizing wind and solar is never characterized as “coddling”.

    If you are from a coal state then you aren’t as concerned with natural gas winning on the economic merits, you are worried about a lot of out of town politicians actively trying to kill one of your already poor state’s leading industries and then replacing it with subsidized solar/wind that ultimately ends up out of state. Dancing on the grave of a poor state’s economy doesn’t help.

  • CaliforniaStark

    “As intermittent renewables continue to gain market share, reliability will be an increasingly salient, and valuable, issue.”

    Renewables are not gaining market share. Their existence is dependent on government subsidies; in some cases the subsides are massive. The National Review had an article on June 6, 2016, comparing the cost of the wind subsidy with the price of natural gas at the time:

    “Recall that the production tax credit is $23 per megawatt-hour. A megawatt-hour of electricity contains 3.4 million Btu. That means wind-energy producers are getting a subsidy of $6.76 per million Btu. The current spot price of natural gas is about $2.40 per million Btu. Thus, on an energy-equivalent basis, win energy’s subsidy is nearly three times the current market price of natural gas.”

    This is insane. Making it even more ludicrous is wind energy is intermittent, which means we must incur the additional cost of a second energy source, such as natural gas, to provide energy when the wind is not blowing. A similar situation exists with solar subsidies. It is time to phase out all special energy subsidies, and not create any new ones. Am pleased the FERC rejected the Perry proposal, which was complete nonsense.

    A carbon tax is another form of subsidy; whose purpose is to attempt to raise the price of fossil fuels to make renewable energy more competitive. It is an indirect form of price control, and in effect a tax increase which burdens those with lower incomes in a disproportionate manner. Its totally unfair. Its interesting that the United States, which does not have a carbon tax, has experienced the greatest reduction in carbon emissions of any country on the planet. Maybe more government intervention is not the solution?

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