Pres. Trump Defies Free Market Principles and Moves to Force Consumers to Pay for Uneconomic Power

Yesterday, Bloomberg reported that the Trump Administration is preparing to issue a bailout for uneconomic coal and nuclear plants by forcing grid operators to buy their power. As renewable energy and natural gas has become very inexpensive, many coal and nuclear plants can no longer compete on price without intervention such as what is proposed by the Administration, and are therefore likely be retired soon. The Administration claims that the retirement of these plants is a national security emergency, although there seems to be little factual basis for this claim. The move to mandate the purchase of electricity from old, uneconomic sources and guarantee them revenue has been heralded as an unprecedented intervention into energy markets.