BEYOND COAL

About This Epis0de

The coal business is costly. With the price of renewable forms of energy plummeting in the last decade, coal has become an increasingly uneconomical asset. But who’s on the hook for bearing the financial, health, and environmental burdens of coal fired power plants? Whether the plants are operating or retired, ratepayers are paying for them, plus interest. And, without community engagement and support from state legislators, it will likely be the local communities and laid off coal plant workers that pay the highest price.

Utility investments are reviewed and approved by a state-appointed public utility commission. This approval includes assurances that the new assets are needed and that they are a benefit to ratepayers. The approval also includes a protected rate of return for the utility investors over the life of the asset. But what happens when the utility and their regulators get it wrong? When the asset, like a coal-fired power plant, begins to lose money well before expected? Should ratepayers continue to pay higher prices to ensure that investors get their expected returns? Or, does the coal plant become a “stranded asset” for which the investors will not be fully reimbursed? And what happens to the plant workers and local community when the power plant is shuttered?

Though regulatory policy has long been the driver of change to the Midwest’s energy mix, community voices focused on creating economical and equitable energy systems are starting to find their rightful place in the decision-making process. State legislatures across the Midwest are also stepping up to support a clean energy transition that provides economic, societal, and environmental benefits to communities across the Midwest. And local champions, along with community leaders like Laura Lane and Ryan Hidden, are leading the way with support of the Sierra Club’s Beyond Coal Campaign.

In the last few months alone, utilities have announced plans to retire coal plants across the Midwest and, at the same time, build a record amount of utility owned solar and wind generation. How will this affect the coal plant communities near you? What will happen to the workers? Who will pay for the clean-up? How will the communities recover economically? These answers will depend, in large part, on how the communities organize. Our guests for this episode have demonstrated that your voice can matter. By working together, you can put pressure on your representatives and on your utility’s executives to transition your community’s energy mix to cheaper, cleaner sources that deliver greater local economic development benefits.