Eddystone units under federal mandate raise cost concerns for Pennsylvania consumers

The federal mandate to keep the Eddystone coal plant operational has raised concerns over the costs that might be incurred by the Pennsylvania consumers, as well as potentially 13 other US states. The Trump administration has mandated that the Eddystone site continue operations well beyond the planned retirement date. The current President has done everything in his considerable power to keep the lights on at Eddystone, along with nearly every other coal site that had planned to retire several plants across the United States. This has not gone down well with environmental and activist groups.

The Federal Energy Regulatory Commission approved PJM’s plan to recoup losses

The FERC announced that it would allow PJM Interconnection to recover its payments to the plant’s owner, Constellation Energy, by raising prices for electricity in 13 US states. The United States Department of Energy claimed the US was in an energy emergency, and approved the plan to kick the money can down the road to the customers in Pennsylvania.

Last month, the agency ordered the plant in suburban Philadelphia and another in southwest Michigan to continue operations well beyond their planned retirement dates. Extending the order will keep both sites operational for 180 days, which aligns with the DOE’s emergency orders that aim to prop up the coal sector in the United States.

The DOE Secretary, Chris Wright, who is a former oil drilling and mining executive, praised the current administration’s executive orders, including the “One Big Beautiful Bill”, which aims to revitalize the coal sector by removing regulatory barriers and ordering coal plants to keep the lights on well beyond their planned retirement dates. During a visit to the National Energy Technology Laboratory in Morgantown, West Virginia, Wright outlined the administration’s plans for the coal sector.

“There are like 40 coal plants that are supposed to close this year, and our biggest impact is going to be to stop the closure of most of those.” – DOE Secretary, Chris Wright

Environmental and activist groups are raising concerns over the emergency orders implemented by the DOE

Several environmental groups have raised some serious and credible concerns over the apparent emergency in the energy sector in the United States, which the DOE has stated is a direct result of peak electricity demands and growing consumption. The cost of keeping Eddystone online is estimated at nearly $70 million annually. Which would inevitably be passed along to customers in the Pennsylvania region.

Several groups have stated their dismay with the order to keep the Eddystone site operational, which will inevitably result in higher rates for customers.

“There is no need for this plant to continue operating. We’re waiting for a compelling reason and one is not emerging.” – Jessi Eidbo, senior advisor at the Sierra Club

“The Trump administration has made very clear that they are going to issue an order to every coal plant that is going to retire in the next few years. Were they allowed to do that for four years, the cost for consumers very quickly would go up.” – Greg Wannier, senior counsel at the Sierra Club

“Our concern is making sure Pennsylvania families and businesses are not forced to shoulder the cost of power shortages in other states. While the added expense from Eddystone may be modest right now, if this becomes a pattern with larger plants, the price tag for consumers could grow quickly — and those costs should fall more heavily on the regions that actually need the extra power.” – Pennsylvania Public Utilities Commission Chairman Stephen DeFrank

The Trump administration is rolling back regulatory restrictions for the coal sector in the US

Since coming into office for the second time, Trump has lived up to his mantra of “drill baby, drill”. His administration has elevated the standing of the coal sector by signing several executive orders that aim to reinvigorate the sector by removing regulatory barriers. The result, however, is that customers will feel the pinch in their pocket as costs will inevitably be pushed down the line to everyday customers. The cost of keeping the Eddystone site operational is astronomical, and the average Pennsylvanian will not be happy about paying more for electricity.