WASHINGTON, D.C. (RFD News) — As electricity demand continues to rise across the country, rural electric cooperatives are urging the Environmental Protection Agency (EPA) to repeal a Biden-era rule regulating greenhouse gas emissions from power plants.
The National Rural Electric Cooperative Association (NRECA) says the rule could make it harder and more expensive for cooperatives to provide reliable, affordable electricity to the rural communities they serve. NRECA CEO Jim Matheson joined us on Friday’s Market Day Report to explain how the rule presents two major challenges for electric cooperatives.
In his interview, Matheson explained that regulation requires existing coal and natural gas plants to use carbon capture and sequestration technology, while imposing emissions limits on new natural gas plants that could effectively restrict them to operating 40 percent of the time.
According to Matheson, the technology required for carbon capture and sequestration is not currently viable for the industry, while the 40% operating limitation creates significant challenges for utilities investing in new natural gas generation.
“We’ve got people across electric cooperatives making multibillion-dollar investments in natural gas plants,” Matheson said. “We’re going to build this plant, but we only run at 40% of the time. That doesn’t make sense.”
Concerns Over Reliability and Affordability
Matheson said the operating restriction could force utilities to build additional generation simply to ensure they have enough capacity available when customers need it.
Electric cooperatives are responsible for keeping the lights on around the clock, and Matheson said limiting a natural gas plant to 40% of its potential operation could undermine both reliability and affordability.
“If you’re limited to only running the plant 40% of the time, what do you do? Build another one right next to it and run it 40% of the time?” he said.
Matheson argued that such an approach could result in additional costs without providing a meaningful emissions benefit.
For rural communities already facing rising electricity demand, cooperatives say the ability to make long-term investments in generation is becoming increasingly important.
Cooperatives Call for Regulatory and Permitting Changes
The NRECA has been working with the Trump administration on efforts to repeal the power plant rule.
Matheson said the Trump EPA has proposed repealing the regulation, and the proposal is currently at the White House.
He also pointed to permitting reform as another area where policymakers could help utilities meet growing demand.
Major generation projects and transmission infrastructure can take years to develop, Matheson said, while permitting requirements can make the process unpredictable and time-consuming.
“We’ve got to right-size our permitting in this country to make sure it’s accountable. It’s timely,” he said.
Matheson said Congress could play an important role by streamlining the permitting process and making it easier to build major energy infrastructure.
Meeting America’s Growing Energy Demand
The debate comes as electricity demand is accelerating due to the growth of artificial intelligence, data centers, manufacturing and other energy-intensive industries.
Matheson said the country will need new generation and transmission infrastructure to meet that demand.
“We need to build new generating supply and new electric transmission lines as well,” he said.
He warned that policies restricting the use of new and existing power assets could make it more difficult to keep pace with demand.
Matheson also said reliable and affordable electricity is increasingly tied to the nation’s economic security as the United States expands manufacturing and other energy-intensive industries.
“We almost take it for granted, but we shouldn’t take it for granted,” Matheson said.
For rural electric cooperatives, the priority is making sure new electricity demand can be met without sacrificing the reliability or affordability their members depend on.
