Energy Companies Get Permission to Use Coal In Dangerous Decision
A new regulation in Michigan has opened the door to allow energy companies to use coal, despite the fact that it is the most polluting of all fossil fuels.
The decision has an unexpected benefit for current customers. Specifically, the rule allows utilities to use fossil fuels if they cannot get enough electricity capacity from renewables. What it is too early to tell is whether this is a disincentive to invest in renewables when fossil fuels can be used without a cap, in theory at least. One challenge almost all utilities have or will face is the growing need for electricity for AI data centers, air conditioning, and EVs
Rising Need For Electricity
The trend could spread well beyond Michigan. Utilities in a large part of the country face the need for electricity as AI data center build outs accelerate. This year, America’s seven largest AI-centric companies say they will invest $333 billion in these facilities. That figure may well rise each year for the balance of this decade.
If the Michigan decision is a precedent, air pollution, which was lowered substantially because of federal regulation in the 1970s, could begin to rise quickly again.
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