Over the past decade, an influx of cheap natural gas and the rapid rise of renewable energy has transformed the nation’s power sector, driving down electricity prices and pushing many older coal and nuclear plants into retirement.

In September, Perry warned that the loss of these plants could threaten the “reliability and resiliency of our nation’s grid” and asked the Federal Energy Regulatory Commission, which oversees regional electricity markets, to guarantee financial returns for any power plants that can stockpile at least 90 days’ worth of fuel on-site — which, in effect, meant propping up uncompetitive coal and nuclear plants.

While a few power companies with significant coal and nuclear capacity supported the idea, Perry’s proposal generated a fierce backlash from a broad coalition of utilities, electricity consumers and former regulators.

Critics argued that Perry’s proposal would upend competition in the nation’s electricity markets, which have been deregulated in much of the country since the 1990s and currently tend to favor the lowest-cost sources of power.

“There is no evidence in the record to suggest that temporarily delaying the retirement of uncompetitive coal and nuclear generators would meaningfully improve the resilience of the grid,” Commissioner Richard Glick wrote, concurring with the agency’s decision to reject the proposal. “Rather, the record demonstrates that, if a threat to grid resilience exists, the threat lies mostly with the transmission and distribution systems, where virtually all significant disruptions occur.”

The agency did add, however, that it would investigate potential threats to the resilience of the grid from natural disasters and other disruptions, giving grid operators 60 days to submit comment. At that time, it could issue a new order to tweak rules in competitive electricity markets.

“I appreciate the commission’s consideration and effort to further assess the marketplace distortions that are putting the long-term resiliency of our electric grid at risk,” Perry said in a statement. “As intended, my proposal initiated a national debate on the resiliency of our electric system.”

The commission’s unanimous decision to reject Perry’s proposal is final.

The New York Times