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.
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A new report highlighted efforts to restore Pennsylvania's wildlife habitats and called for stronger conservation to protect native species.
With Pennsylvania ranking among the top five states for animal-vehicle collisions, more than more than 1 million animals are killed on roads annually.
Stephanie Wein, clean water and conservation advocate at the PennEnvironment Research and Policy Center, said the report provided recommendations to enhance wildlife corridor projects and protect the state's diverse species, from bobcats and black bears to migrating songbirds. She added an infrastructure project along a Pennsylvania Interstate is keeping both wildlife and drivers safe.
"One example is in State College, Pennsylvania," Wein pointed out. "I-99 has a bunch of underpasses that allow black bear and deer and bobcat, geese and blue heron to get under that highway that was crossing through some of the biggest stretches of Pennsylvania wilderness."
Wein noted there is bipartisan support for wildlife corridors in Pennsylvania. House Resolution 87 passed with strong backing from both parties. At a Wednesday news conference, lawmakers will share goals of protecting wildlife, preserving nature and improving driver safety.
Wein emphasized wildlife corridor projects can be as simple as adding fencing along roads. She underscored a case study in the report about fencing on U.S. Route 522 near Mount Union, where the road was built over vital nesting grounds, helps female map turtles along the Juniata River to stay off the roadway.
"In that first season, over 50 nesting females of this threatened species were killed on that road," Wein reported. "Local conservationists working with PennDOT, they actually got a fence installed that stops them right at the road's edge."
The report recommended Pennsylvania agencies try to keep securing federal funds to address habitat fragmentation. The Infrastructure Investment and Jobs Act of 2021 created a $350 million Wildlife Crossings Program for safer roads. PennDOT secured a 2023 planning grant and should continue seeking funding to protect wildlife and drivers.
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Lawmakers in the West Virginia Senate have passed a bill to remove mandated inspections for chemical storage tanks in the oil, coal and gas industries.
The measure is now pending before the House Energy and Public Works Committee.
Morgan King, climate and energy program manager for the West Virginia Citizen Action Group, said lawmakers have repeatedly tried to gut protections over the past decade but this time, they appear close to succeeding. She added up to 1,000 tanks scattered across the state would be removed from inspections.
"That just puts us at risk for future water crises if another leak occurs and it's not caught," King contended.
West Virginia passed strict regulations aimed at preventing water tank leaks after a 2014 chemical spill. The spill dumped around 10,000 gallons of chemicals into the Elk River, which supplies drinking water to around 300,000 people in the Charleston area.
According to the West Virginia Environmental Council, 38% of all confirmed tank leaks reported to the West Virginia Department of Environmental protection are located in zones of critical concern. King believes the move signals lawmakers are willing to put the bottom line of industries and their profits above the health and safety of Mountain State residents.
"We're seeing that they're putting the interests of the executives over that of public interest," King outlined. "Around our health, around economic growth, around our ability to have clean air to breathe and clean water to drink."
In the weeks following the 2014 chemical spill, the West Virginia Poison Center received thousands of phone calls from people reporting rashes, nausea, vomiting, diarrhea and other symptoms, according to a state report, which also found an increase in emergency room visits.
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West Virginia environmental groups are suing the U.S. Army Corps of Engineers, arguing the agency failed to consider residents' health when it gave the stamp of approval for the creation of four valley fills on a thousand-acre surface mine in Raleigh County.
Vernon Halton, executive director of the nonprofit Coal River Mountain Watch says the region experienced severe flooding in the 1990s and early 2000s, and says more valley fills, which involve dumping rocks, minerals and waste into nearby waterways, will put their lives at risk.
"It's going to permanently endanger the people whose homes are in the valleys below, he explained."
According to Environment America, valley fills permanently bury headwater streams and reduce water quality. More than 2,000 miles of headwater streams have been buried due to mountaintop removal.
Haltom added that communities continue to grapple with health challenges unparalleled outside of the coalfields.
"Higher rates of cancer, higher rates of heart disease, higher rates of birth defects, higher rates of other diseases, and most of them can be linked to the airborne dust that people are forced to breathe," he continued.
Research has shown breathing in toxic dust promotes the growth of lung cancer cells in people living in communities near mountaintop removal. Coal is mined in 22 of West Virginia's 55 counties, according to federal data.
Disclosure: West Virginia Highlands Conservancy contributes to our fund for reporting on Budget Policy & Priorities, Environment, Urban Planning/Transportation, Water. If you would like to help support news in the public interest,
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