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NMA submits comments to FERC regarding fuel-secure electricity resources loss

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World Coal,

The design of the nation’s largest wholesale electricity market is contributing to the loss of fuel-secure electricity resources, while encouraging reliance on pipeline-dependent and intermittent resources, the National Mining Association (NMA) said in comments submitted to the Federal Energy Regulatory Commission (FERC) on 2 October. NMA’s comments support a properly expanded Minimum Offer Price Rule (MOPR) and the establishment of a market-based mechanism for valuing fuel security.

“Coal-powered plants are retiring at an alarming rate and, to date, nothing has been done to prevent the potentially disastrous loss of our most resilient fuel source,” said Hal Quinn, NMA president and CEO.

“Now is the time to put in place a market-based mechanism that values fuel security. A balanced, fuel-secure electricity mix is the strength of the U.S. electric grid and, without action to properly value fuel security, we are poised to trade reliability and balance for over-dependence on intermittent fuel sources and natural gas pipelines.”

A recent study conducted by Energy Ventures Analysis (EVA) for NMA found that the cost to consumers of premature retirements of coal vastly outweighs the cost of supporting continued operations. The study also found that, during periods of extreme cold weather when natural gas supplies are strained from competing power and heating demands, coal is the only source of resilience for the grid.

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US coal news National Mining Association news