Utility Dive•23 days ago
Coal plant owners say DOE ‘emergency’ order to run it violates Constitution
Key Takeaway
This legal challenge to a DOE emergency order mandating coal plant operation highlights significant regulatory risk and the ongoing tension between grid reliability mandates and generator property rights, impacting long-term investment and operational certainty for all market participants.
AI Summary
- •The Department of Energy (DOE) issued an 'emergency' order mandating the availability and operation of certain coal plants.
- •Coal plant owners are challenging the DOE order, arguing it constitutes an unconstitutional 'physical taking' and 'regulatory taking' of their property without just compensation or due process.
- •This legal dispute highlights significant regulatory risk and potential for federal intervention in grid operations, impacting asset owners' property rights and operational autonomy.
- •For developers and large power consumers, this case underscores the unpredictable nature of regulatory mandates during grid emergencies, potentially affecting long-term investment decisions, operational certainty, and the valuation of generation assets.
Topics
capacity-marketpolicy
Article Content
By mandating the generator’s availability to operate, the order “constitutes both a physical taking and a regulatory taking” of property by the government without just compensation or due process, they said in a request for rehearing.