Trump coal backer wins big under Perry's power plan

Energy Secretary, Rick Perry proposed a new power plan that is expected to benefit a small group of companies, among which also includes Bob Murray, a coal magnate who is a supporter of President Donald Trump. According to the proposed plan, consumers would be forced to subsidize the ailing coal-fired and nuclear power plants so that the country can withstand severe threats such as any terrorist attacks and severe weather condition. The plan, however, has some flaws and will affect some of the plants located in the Midwest and Northeast where Murray Energy is also located and is the largest supplier in the area. Last year, the company along with its PAC has sent about $200,000 to the pro-Trump election campaign.

Perry's new proposal will need to be approved by the Federal Energy Regulatory Commission and is considered to be a bold step that would reverse the efforts of President Barack Obama. The demand for coal is going to increase, but it will also increase power prices. The plan has drawn criticism from large groups such as environmental groups, natural gas, wind and solar industries and also the American Petroleum Institute. But, it has brought cheers to coal companies especially those located and operating in Appalachia.

Murray Energy's future depends on if Perry's plan will get approval or not. Last month, the company made a statement saying that the company has interest in the outcome of Terry's plan. Since coal companies like them are on the verge of bankruptcy and economic problems if these natural resources are forced out of the market and an unsupportive pricing system. While the company has not been vocal about its financial situation, the company has been vocal about support from Trump and Perry to the coal industry and it even called Obama 'the greatest destroyer that America has ever seen.'

Since President Trump became President Murray has called for personal meetings with Trump and DOE officials. During these meetings in the summer, Murray had urged the Trump administration to declare power grid emergency and allow FirstEnergy, coal-fired power plant company to remain open even if it was under bankruptcy. In 2015, the company had brought about two-thirds of its coal from Murray. While the emergency was not declared, the new rule could bring in the same result that the coal industry had expected from it.

November 23, 2017 - 09:39
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