This is what happens in a transitional economy. All the big brave tough bullies, Captains of Industry, turn into silly whiny little sissies begging for handouts. Isn’t life interesting. And no, this is not an April Fools Joke.
On Saturday, power corporation FirstEnergy placed its coal and nuclear generation units under chapter 11 bankruptcy. Although coal and nuclear plants across the country have struggled to compete with the low prices of natural gas, FirstEnergy’s filing is unique because it stands to take on a political dimension. Just two days before FirstEnergy’s bankruptcy filing, the company petitioned the Department of Energy (DOE) for an emergency bailout, citing concerns about reliability.
The petition could reinvigorate a debate started by Energy Secretary Rick Perry, who proposed a rule last year to change how coal and nuclear plants are compensated for their power. The rule was denied by the Federal Energy Regulatory Commission (FERC), which said that there was not enough evidence to justify changing how coal and nuclear are compensated.
FirstEnergy disparaged FERC’s decision in its Thursday petition (PDF), claiming that “as a result of FERC’s and the RTO’s [Regional Transmission Organization’s] failure to address this crisis, swift and decisive action is needed now to address this imminent loss of nuclear and coal-fired baseload generation and the threat to the electric grid that this loss poses” (emphasis FirstEnergy’s).
Go there and laugh your asses off. More next week.