Recently, the Washington Post editorial board published an opinion piece titled “What Energy Emergency?” America’s Power submitted the following letter in response to the piece:
Dear Editor:
In criticizing one of President Trump’s Executive Orders, your piece “What Energy Emergency?” failed to acknowledge an important part of the order that mentions the “increasingly unreliable [electricity] grid.” This part of the executive order is a response to years of warnings by experts and officials that our electricity supply has declined to the point that more than half the United States is at risk of electricity shortages over the next five years. The newly appointed chair of the Federal Energy Regulatory Commission, which is responsible for ensuring reliable and affordable electricity, has repeatedly warned that we are facing a “crisis” because dispatchable electricity sources – coal, gas, and nuclear power plants – are retiring faster than other (less dependable) electricity sources are being added to the electricity grid. The non-partisan North American Electric Reliability Corporation, which is also responsible for grid reliability, has warned about the risk of electricity shortages since 2018. This is one of the reasons why President Trump signed the executive order declaring a national energy emergency.
Electricity demand is growing faster than it has in decades, and we must be able to meet this demand to protect our national interests. At the same time more electricity is needed, almost a third of the fleet of coal-fired power plants is expected to retire. Fortunately, many utilities have decided to postpone these retirements. Electricity shortages are the last thing the U.S. needs as we compete with our rivals to build data centers that enable advances in artificial intelligence.
Not having enough power plants also drives up electricity prices. A few months ago, the nation’s largest grid operator held an auction to make sure it would have enough electric generating capacity to satisfy electricity demand in its 13-state region. Because electricity demand is beginning to outstrip supply, the cost of generating capacity increased from $2.2 billion in the previous auction to $14.7 billion in the most recent auction. One of the reasons for this enormous increase in electricity costs, which are passed on to consumers, is the retirement of existing power plants.
Whether we call this an emergency or a crisis, President Trump was right to take steps to ensure that we have an ample and affordable supply of electricity.
Sincerely,
Michelle Bloodworth