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Issue Brief: America's Electricity Affordability & Reliability Crisis

Consumer Action for a Strong Economy (CASE), a free-market consumers' group, released a policy brief on the nation's grid affordability and reliability crisis that strongly advocates for a policy reset to better value dispatchable fuel diversity underpinned by the existing coal fleet. The brief highlights rising electricity affordability challenges, fuel security concerns and dire reliability warnings coming from utilities, grid operators and policymakers in both the U.S. and Europe, and lays out the scope of the challenge, the importance of dispatchable fuel diversity and presents a series of policy principles to guide an energy policy reset. Those principles include a call to expand generating reserve margins, to better value fuel security, and to build new generating capacity in addition to existing capacity, not in place of it.


News provided by

Consumer Action for a Strong Economy

Feb 25, 2022, 08:00 ET

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ALEXANDRIA, Va., Feb. 25, 2022 /PRNewswire-PRWeb/ -- Today Consumer Action for a Strong Economy (CASE) released a briefing paper addressing key weaknesses in America's current energy policy, which, if not addressed, will likely contribute to the continuation of skyrocketing energy prices and catastrophic power outages.

Titled "America's Electricity Affordability and Reliability Crisis," the paper notes the deleterious effect from the rapid pivot away from existing baseload power capacity before reliable and affordable alternatives are in place, leaving consumers and our economy hostage to increasingly volatile natural gas prices and insufficient contributions from renewable resources.

"Rising fuel prices for electricity generation and a loss of fuel diversity are exposing Americans to the same kind of pain once confined to the gas pump. Our nation's abandonment of coal generating capacity is robbing regions of the country of readily available fuel diversity."

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"Rising fuel prices for electricity generation and a loss of fuel diversity are exposing Americans to the same kind of pain once confined to the gas pump. Specifically, our nation's abandonment of coal generating capacity is robbing regions of the country of readily available fuel diversity that has long worked as a price buffer to natural gas price volatility," the paper begins.

The paper highlights the consistent fallout in the U.S. and in Europe from the failure to have readily dispatchable baseload energy sources during times of extreme weather or unpredictable energy markets. From New England to California, America is creating its own energy security, reliability and affordability crisis by dismantling its own fuel and grid diversity. As the paper notes, utilities that have kept coal generated power online as part of their energy mix have seen far less price volatility and disruptions in delivery of electricity.

The paper closes with several policy prescriptions to avoid future catastrophes, urging policy makers and industry leaders alike to prioritize grid stability, fuel diversity, and energy security, regardless of political pressures or economic shortcuts that ultimately cost consumers much more in the long-run through higher electric bills and less reliable service.

Media Contact

Gerard Daniel Scimeca, CASE, 1 8044020032, [email protected]

SOURCE Consumer Action for a Strong Economy

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