>> Sreenivasan: THE OPERATORS OF
COAL AND NUCLEAR POWER PLANTS
GOT A BOOST FROM THE TRUMP
ADMINISTRATION THIS WEEK.
THE PRESIDENT ORDERED ENERGY
SECRETARY RICK PERRY TO "PREPARE
IMMEDIATE STEPS" TO STOP THE
OFTEN UNPROFITABLE PLANTS FROM
SHUTTING DOWN.
PROPOSALS INCLUDE ORDERING
POWER-GRID OPERATORS TO BUY
ELECTRICITY FROM COAL AND
NUCLEAR PLANTS EVEN THOUGH
NATURAL GAS AND ALTERNATIVE
ENERGY SOURCES ARE CONSIDERED
CLEANER ENVIRONMENTAL OPTIONS.
BLOOMBERG REPORTER JENNIFER
DLOUHY OBTAINED AN INTERNAL MEMO
OUTLINING THESE CONTROVERSIAL
PROPOSALS, AND SHE JOINS US NOW
FROM WASHINGTON, D.C.
FIRST, WHAT IS THE
ADMINISTRATION TRYING TO DO?
>> WELL, I MEAN, THEY'RE
ESSENTIALLY LOOKING AT AN
EXTRAORDINARY INTERVENTION IN
THE POWER MARKETS TO TRY TO SAVE
THESE COAL AND NUCLEAR POWER
PLANTS THAT ARE STRUGGLING TO
MAKE MONEY IN THE FACE OF
COMPETITION FROM CHEAP NATURAL
GAS.
AND THEY'VE DUSTED OFF THE LAW
BOOKS AND SETTLED ESSENTIALLY ON
TWO PRETTY OBSCURE STATUTES TO
TRY TO DO THIS, TO ORDER GRID
OPERATORS TO BUY POWER FROM
THESE AT-RISK PLANTS, THESE
PLANTS AT RISK OF CLOSURE; AND
TO SET UP A NATIONAL ELECTRIC
PRODUCTION RESERVE TO HELP IN
TIMES OF EMERGENCY.
>> Sreenivasan: SO, IS THE
RATIONALE THEN THAT THIS IS A
NATIONAL SECURITY ISSUE, THAT
THE GRID NEEDS TO BE STABLE?
>> ABSOLUTELY.
THEY'RE ASSERTING THAT THIS IS A
NATIONAL SECURITY CONCERN, THAT
THE GRID IS THREATENED BY THE
PREMATURE CLOSURES OF THESE
PLANTS.
YOU KNOW, THEY ARGUE THAT, YOU
KNOW, NUCLEAR PLANTS AND COAL
POWER PLANT, THEY HAVE FUEL ON
SITE, SO THEY'RE A LITTLE BIT
MORE DURABLE AND RESILIENT.
THEY CAN SNAP BACK MORE QUICKLY
AFTER AN EMERGENCY OR CYBER
ATTACK.
THIS IS THE ASSERTION THAT THE
ENERGY DEPARTMENT IS MAKING, AND
THEY'RE SAYING, YOU KNOW, OUR
DEFENSE DEPARTMENT INSTALLATIONS
ARE 99% DEPENDENT ON THE U.S.
ELECTRIC GRID, AND THAT THE GRID
ITSELF IS THREATENED WHEN COAL
PLANTS AND NUCLEAR PLANTS RETIRE
BECAUSE THAT MEANS THAT WE HAVE
MORE NATURAL GAS POWER, WE'RE
MORE DEPENDENT ON NATURAL GAS
POWER, AND WE'RE MORE DEPENDENT
ON RENEWABLE POWER THAT DOESN'T
GET PRODUCED AROUND THE CLOCK.
>> Sreenivasan: ANOTHER LINE
OF THINKING WOULD BE IF THE
MILITARY IS SO DEPENDENT ON 
SPECIFIC TYPES OF ENERGY,
SHOULDN'T THEY ACTUALLY
DIVERSIFY TO MAKE SURE THAT THEY
HAVE RESILIENCY AFTER A STORM?
I'M ASSUMING THAT SOME OF THE
CRITICS ARE POINTING TO A
DIFFERENT TYPE OF LOGIC HERE.
>> RIGHT, ABSOLUTELY.
YOU KNOW, THE CRITICS SAY THAT
YOU CAN MAKE OUR GRID MORE
DURABLE.
AND IN FACT IT HAS BECOME MORE
RELIABLE BECAUSE IT IS BECOMING
MORE DIVERSE BY, YOU KNOW,
THE... WE'RE GETTING OUR POWER
INCREASINGLY FROM A WIDER ARRAY
OF SOURCES AND THAT THAT
ACTUALLY HELPS BUFFER US FROM
EMERGENCIES.
YOU KNOW, WHAT'S INTERESTING
IS THE ENERGY DEPARTMENT AND THE
ADMINISTRATION IS ROOTING ITS
ARGUMENT HERE IN NATIONAL
SECURITY, PROBABLY PARTLY FOR
LEGAL REASONS, TO HELP BUFFER
THEM FROM A LEGAL CHALLENGE DOWN
THE ROAD.
BUT THE ENERGY DEPARTMENT'S OWN
ANALYSIS HAS FOUND THAT THE GRID
IS MORE RELIABLE BECAUSE IT HAS
POWER COMING FROM A WIDER ARRAY
OF SOURCES.
>> Sreenivasan: SPEAKING OF
THOSE LEGAL CHALLENGES, I'M
ASSUMING THIS IS GOING TO GET
SORTED OUT IN THE COURTS.
NOTHING ACTUALLY HAPPENED AS OF
YESTERDAY OR TOMORROW.
WHAT'S THE LIKELY TIMELINE OF
THIS NOW?
>> WELL, I THINK WE'RE LOOKING
AT... MOST ANALYSTS I TALKED TO
LOOK AT THE MEMO THAT I OBTAINED
AND THE ACTION THAT WE'VE SEEN
OVER THE PAST COUPLE OF DAYS AND
THINK SOME ACTION IS GOING TO
HAPPEN IN COMING WEEKS.
IT WILL PROBABLY BE A DIRECTIVE
FROM THE ENERGY DEPARTMENT
SPELLING OUT, YOU KNOW, THE
LOGISTICS OF THIS PLAN, EXACTLY
WHAT GRID OPERATORS HAVE TO DO.
BUT OPPONENTS, YOU KNOW, WHETHER
IT'S THE OIL INDUSTRY, THE WIND
PRODUCERS AND ENVIRONMENTALISTS,
THEY'VE ALL INDICATED THAT THEY
PLAN TO MARCH RIGHT INTO FEDERAL
COURT AND TO FILE CHALLENGES TO
THIS.
AGAIN, YOU KNOW, I THINK THE
FACT THAT THE ENERGY DEPARTMENT
IS ROOTING THIS IN NATIONAL
SECURITY IS AN EFFORT TO
INSULATE ITSELF.
IT IS ALSO A TEMPORARY
INTERVENTION PLANNED FOR ONLY
TWO YEARS.
BUT THE COURTS WILL DECIDE.
I THINK THAT'S ALMOST A GIVEN AT
THIS POINT.
>> Sreenivasan: JENNIFER
DLOUHY FROM "BLOOMBERG" JOINING
US FROM WASHINGTON, THANKS SO
MUCH.
>> THANK YOU.
