DOE’s $3.1B Fossil Power Plant Mandate

DOE’s mandate to keep large fossil-fuel power plants running could cost ratepayers about $3.1 billion annually by 2028.

The cost estimate uses a proxy of $89,315 per MW-year based on reliability-must-run contracts.

States with the highest projected costs include California ($389 million), Texas ($183 million), and Colorado ($178 million).

DOE has already issued emergency orders delaying retirements at units such as Michigan’s J.H. Campbell plant, costing $29 million in 38 days.

If up to 34.9 GW of planned retirements are retained, annual costs could rise to $5.9 billion.

Regions like MISO, PJM, and CAISO could face $1.1 billion, $732 million, and $389 million in extra annual costs, respectively.