Industrial Energy Consumers of Pennsylvania states opposition to nuclear bailout

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The Industrial Energy Consumers of Pennsylvania (IECPA) recently sent a memo to members of the Pennsylvania General Assembly stating its opposition to a legislative proposal that would provide a ratepayer-funded state incentive to the nuclear industry.

The letter addressed a bill currently being drafted by state Sen. Ryan Aumet (R-Lancaster). The bill would create a new tier under Pennsylvania’s Alternative Energy Portfolio and require utilities to purchase power from the state’s nuclear plants. A date for introducing the bill has not yet been set.

“IECPA members support a diverse power plant generation portfolio including nuclear power plants,” the organization wrote. “However, we do not support a unique subsidy for those plants. While increasing electricity cost on households and small businesses are bad enough, the brunt of the impact will be felt by large-scale users of electricity, including our manufacturers, schools, transit systems and city governments.”

IEPCA noted that its member companies have significant electricity expenditures and can not pass additional electricity costs on to customers without risking the loss of customers to global competition. Increased electricity costs, IEPCA wrote, could lead to a reduction in employment.

The University of Pennsylvania Kleinman Center for Energy Policy has estimated that the total cost of the new tier requirement could be approximately $981 million annually.