Regulators Reject Coal Subsidization Plan
January 10, 2018
Federal regulators reject Perry coal and nuclear subsidization plan; CBO revises downward children’s health insurance cost estimate; Euro zone unemployment at 9-year low.
- Federal regulators reject Perry coal and nuclear subsidization plan. The Federal Energy Regulatory Commission rejected a rule proposed by the Energy Secretary Rick Perry, that would have subsidized coal and nuclear power plants. The commission found no evidence current energy tariffs are “unjust, unreasonable, unduly discriminatory or preferential.” The proposed rule was opposed by environmentalists, as well as the oil, natural gas and renewables industry. The decision is a setback for the Trump administration, who appointed four of the five regulators who voted against the proposed rule. [CNBC]
- CBO revises downward children’s health insurance cost estimate. The Congressional Budget office decreased dramatically its estimate of the budget impact of the Children’s Health Insurance Program, from 8.2 billion to 800 million over the next ten years. One reason for the shift is the repeal of the individual mandate, which would increase government spending on subsidizing low income Obamacare recipients. If more parents chose to insure on the CHIP program, it would reduce its net budget impact, by lowering subsidization costs. The new figures will likely lower barriers to reauthorization of the highly popular children’s health program, which lapsed in 2017 amidst the tax bill and ACA repeal debate. [The Hill]
Economic Indicators and News
- Euro zone unemployment at 9-year low. Strong economic growth in the euro area has reduced unemployment to a nine-year low, a time just before the financial crisis spread to the area. Jobless rates differ widely across the countries in the economic area, with unemployment rates under 4% in Germany, and over 30% in Greece, Spain and Italy. The total unemployment rate in the region was 8.7% in the month of November. [Reuters]