Is HB6 a Bailout, a Subsidy, or a Fee?

Is HB6 a Bailout, a Subsidy, or a Fee?

Many groups and organizations have characterized HB6 as a bailout or a subsidy. While it certainly has the effect of saving our nuclear power plants – hence “bailing” them out – there are actual value-added metrics that nuclear provides to the grid. So it is not really fair to typify this as a bailout that would never happen under a free-market system. How we reconcile grid objectives like reactive power voltage management, grid inertia, frequency response, resiliency, and security in spite of market forces that will not allow those value-added metrics to be realized – is an on-going problem that legislators will have to someday deal with in order to intelligently manage the grid.

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