DOE efforts to prevent retirement of large fossil fuel plants could cost U.S. ratepayers about $3.1 billion annually by 2028.
Grid Strategies used a proxy cost of $89,315 per MW-year to estimate these expenses, with California facing the highest potential cost of $389 million.
DOE has issued emergency orders under section 202(c) of the Federal Power Act to keep plants like Michigan’s J.H. Campbell online, costing $29 million in the first 38 days.
About 34.9 GW of generating capacity is slated to retire before 2029 unless plants are forced to continue operating, potentially inflating consumer electricity bills.
If plant owners accelerate retirements to access subsidies, annual costs to ratepayers could rise to $5.9 billion.
MISO, PJM and California ISO could face annual costs of $1.1 billion, $732 million and $389 million respectively by the end of 2028.
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