No Bailouts For Big Energy

letter to the hill No Bailouts For Big EnergyFiscal conservative groups urge opposition to energy company bailout under section 202(c) of the Federal Power Act

Energy & Natural Resources,  | Quick Take
Jun 28, 2018  | 2 min read | Print Article

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Dear Mr. President,

On behalf of our free market organizations and the millions of Americans we represent, we urge you to oppose a federal bailout of energy companies under Section 202(c) of the Federal Power Act. Such a bailout would cost taxpayers billions of dollars and would represent an inappropriate government intervention into energy markets.

We applaud your work to roll back unnecessary and duplicative regulations that have hampered our energy sector for far too long. Your efforts have helped create a more level playing field for competing energy sources to the great benefit of consumers and American energy companies. However, a government bailout would mark a significant departure from your market-based approach by tilting the field in the favor of certain companies.

Section 202(c) is reserved for national emergencies and security threats. It must be used judiciously and only when merited by the broad national interest — not to prop up individual companies that are dealing with financial difficulties. As it currently stands, no significant security threat currently exists and the reliability of our electricity grid is not in danger. Indeed, PJM Interconnection, which manages electricity reliability for 13 states and the District of Columbia, stated that there is “no immediate threat to system reliability from plant retirements.”

Thank you for your efforts to strengthen our nation’s vital energy sector by addressing the tax and regulatory climate. We urge you to continue your efforts to reduce harmful government interference in the sector by rejecting unwarranted bailouts of energy companies under the guise of national security concerns.


Pete Sepp, President
National Taxpayers Union

Tom Schatz, President
Council for Citizens Against Government Waste

David Williams, President
Taxpayers Protection Alliance

Jonathan Bydlak, President
Coalition to Reduce Spending

Grover Norquist, President
Americans for Tax Reform

Steve Ellis, Executive Vice President
Taxpayers for Common Sense

Brent Wm. Gardner, Chief Government Affairs Officer
Americans for Prosperity