8/13/2019 PA Coal Alliance blames call for energy conservation on closed coal power plants

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PA Coal Alliance calls for hearings on power supply problems

MONESSEN, Pa., Jan. 28, 2014 /PRNewswire/ -- As consumers brace for considerably higher electricbills in the coming weeks, the Pennsylvania Coal Alliance called for legislative hearings to investigate thereasons for the supply shortages that are causing prices to spike.

Last week PJM Interconnection, which operates the regional power grid, asked the Federal EnergyRegulatory Commission for emergency approval to exceed a $1,000 per megawatt-hour price cap on thesuddenly needed purchased power. The average wholesale price in the PJM region last yearwas $42 per megawatt-hour, according to the Energy Information Administration (EIA).

PJM this week has asked consumers to curtail their use of electricity during high-demand portions of theday.

Although PJM did not provide an estimate of the effect that higher wholesale prices would have onconsumers, EIA estimated in January that some may see home heating bills rise by more than 23 percentfor the season, compared with the previous heating season. That was before our second visit from thepolar vortex, which is causing an extreme drop in temperatures currently.

John Pippy, Coal Alliance CEO, noted that PJM's dilemma follows the closing of three Pennsylvania coal-fired power plants last year. Others are also slated to close, in large part due to proposed federalemission standards.

"Extreme weather can cause energy prices to become volatile, but coal-fired electricity is much less likelyto be subject to severe price swings," Pippy said. "Coal as an energy source brings a strong element ofstability to the power supply and, therefore, to wholesale power prices."

After expressing concerns initially, PJM signed off on the closing of the three power plants last year,contending that their closing would not have a negative impact on the reliability of the region's powersupply.

"Obviously, we are having power supply problems, which will cause electric bills to skyrocket in the nextcouple of months," he said. "Surely there are some lessons that we can learn from this, and we believethat legislative hearings are a good way to do that."

PJM purchases the cheapest power first, and more expensive generation is added as it is needed.

"The problem is, there wasn't enough reasonably priced power available during this extreme cold snap,and that's due in part to federal emission regulations that have forced the premature closing of coal-firedpower plants," Pippy said. "Federal regulators want to impose standards that are not achievable withcurrent technology.

"We've made great strides in reducing emissions of sulfur, nitrogen, particulates and even carbon. Moreadvances are on the horizon that would reduce emissions even further, but the proposed standards

remove the incentives to continue their development."

Pippy said the affordability, reliability and abundance of coal make it an essential part of the energy mix,to the benefit of manufacturers, retailers and consumers. Unilaterally taking coal out of the mix would putthis country at a competitive disadvantage against developing countries such as India and China, whichare increasing their reliance on coal.

"No energy source is perfect, but the higher electric bills consumers will be receiving in the near futureshow that there are unintended, negative consequences to short-sighted environmental and energy

8/13/2019 PA Coal Alliance blames call for energy conservation on closed coal power plants

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policies," he said. "We don't need to choose between affordable, reliable energy and a cleanenvironment. We can have both with a collaborative effort between federal regulators and all energystakeholders."

SOURCE Pennsylvania Coal Alliance