How New State Laws Will Affect Power Plant Closure Costs

Law360 (June 5, 2019, 3:03 PM EDT) -- According to multiple media reports[1], U.S. utilities took 1.4 gigawatts of coal-fired power plant capacity offline in 2018, due almost entirely to economics. While to date the power produced by these plants has been replaced with power generated with natural gas, solar or wind without placing significant reliability strains on the country’s electrical supply, these closures have taken significant tolls on local economies, as good jobs have disappeared and some local tax bases have shrunk almost overnight.

Until fairly recently, the process of closing a power plant was very similar to closing other types of industrial facilities — there were few, if...

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