skip to main content
skip to newscasts

Saturday, August 31, 2024

Public News Service Logo
facebook instagram linkedin reddit youtube twitter
view newscast page
play newscast audioPlay

Layoffs at CA immigration services center lead to protests; Trump: Six-week abortion limit is "too short"; WV voters worried about abortion care, reproductive health access; IL Latino communities advocate for a cleaner environment.

view newscast page
play newscast audioPlay

Vice President Harris says she'd consider a bipartisan cabinet should she win in November, Louisiana is the latest state to push the false claim of noncitizen voters, and incidents of 'swatting' contribute to an increasingly toxic political culture.

view newscast page
play newscast audioPlay

Alaska's 'canary of the sea' is struggling with a deteriorating whale environment, those in rural as opposed to urban areas are more likely to think raw milk is safe to drink, and climate change increases malnutrition in America's low-income counties.

Report Examines Private Equity Power Plants in PJM, Growing Financial Risks

play audio
Play

Thursday, August 24, 2023   

A new report found Pennsylvania communities could be negatively affected by the increasing financial risk in the nation's largest electricity market.

The PJM Interconnection includes Pennsylvania and a dozen other states. According to the Institute for Energy Economics and Financial Analysis, private equity and private capital-owned power plants in the PJM face financial struggles including lower revenue generating capacity.

Dennis Wamsted, energy analyst at the Institute For Energy Economic and Financial Analysis and the report's author, explained the PJM market had robust growth in the last decade from high-capacity prices; but those prices have collapsed, squeezing existing and new developers.

"Financial investors can essentially decide that they no longer want to operate these facilities, and they can notify and tell PJM, OK, we're gonna plan on closing this in 90 days, 100 days," Wamsted outlined. "Unfortunately, that leaves communities in broader areas where these plants are located at risk of losing a great deal of tax revenue, and many good jobs."

Wamsted offered an example of a coal-fired power plant in Homer City, Pennsylvania, which recently closed due to ongoing financial trouble. The owners, who are private equity companies, gave just 90 days warning before the July 1 shut down.

The report pointed out regulatory fines related to last December's winter storm Elliot totaled about $1.8 billion, with some private equity firms hit the hardest, pushing some existing plants into bankruptcy. He added there are no subsidies or loans available for the coal-fired power plants struggling financially.

"There are plenty of subsidies and loans and plenty of carrots, if you will available for new power plant developers, especially those that want to produce wind, solar or battery storage projects that were enacted with the Inflation Reduction Act of 2022," Wamsted stressed.

Wamsted acknowledged no coal-fired plants in Pennsylvania have filed for bankruptcy but elsewhere in the PJM system, there are a number of gas fired plants that have. He added it is another indication of the rising financial risks for power plant owners and developers in Pennsylvania and across PJM.

Disclosure: The Institute for Energy Economics and Financial Analysis contributes to our fund for reporting on Budget Policy and Priorities, Energy Policy, Environment, and Urban Planning/Transportation. If you would like to help support news in the public interest, click here.


get more stories like this via email
more stories
Research shows South Dakota had the fifth-highest rate of cropland abandonment between 1986 and 2018, trailing Texas, North Dakota, Kansas and Montana. (Adobe Stock)

Environment

play sound

Researchers mapped American croplands that have fallen out of production in hopes of inspiring new uses for them, such as renewable energy. Roughly 3…


Social Issues

play sound

The Public Children's Services Association of Ohio has launched a groundbreaking new initiative called Practice in Action Together, aimed at …

Social Issues

play sound

New polling found an overwhelming majority, 85% of Americans believe abortion access should be allowed in some situations. Two years ago in the …


A plan for the Trump Administration put together by a right-wing think tank, called Project 2025, calls to reclassify tens of thousands of employees as political appointees. (Gage Skidmore/Wikimedia Commons)

Social Issues

play sound

Former president Donald Trump is vowing to eliminate or alter thousands of government jobs if he wins this November, which could have a big effect on …

Social Issues

play sound

As Connecticut's school year begins, the state is still dealing with a teacher shortage. Almost every subject area is facing a statewide shortage …

Studies show ending the subminimum wage does not hurt employment in tipped industries. (Adobe Stock)

Social Issues

play sound

National proposals to end taxes on tips might have mixed effects on New Yorkers. Vice President Kamala Harris and former President Donald Trump have …

play sound

New Yorkers could see relief from medical debt if several national proposals move forward. The Consumer Financial Protection Bureau proposed a new …

Social Issues

play sound

Eligible Oregon families have until Monday to apply for summer food benefits. The Summer EBT program provides families with a one-time payment of $12…

 

Phone: 303.448.9105 Toll Free: 888.891.9416 Fax: 208.247.1830 Your trusted member- and audience-supported news source since 1996 Copyright © 2021