New Power Reliability Bill Requires 5-Year Notice for Plant Closures, Grants Environmental Waivers to Keep Old Units Running

The Power Plant Reliability Act of 2025 is all about keeping the lights on, but it comes with some serious trade-offs. This bill hands the Federal Energy Regulatory Commission (FERC) new powers to step in when electricity service looks inadequate—either now or in the next five years. When a state commission or grid operator raises the alarm, FERC has 90 days to hold a hearing and issue an order to fix the problem (SEC. 2).

The FERC Mandate: Keep It Running

What can FERC actually do? They can’t force a utility to build a brand new power plant, which is a key limitation. However, they can issue an order requiring a utility to keep an existing power unit running, even if the owner wanted to shut it down. The upside for the utility is that FERC is required to set a rate or charge to cover the extra operating costs. This means the utility gets paid to keep the unit online, and those costs are ultimately passed on to consumers through their electricity bills (SEC. 2).

This is a classic reliability-versus-cost equation. For example, if you live in a region where the grid is stretched thin, this provision could prevent a sudden blackout. But the trade-off is that you, the ratepayer, will likely foot the bill for keeping that older, potentially more expensive-to-run unit operating for up to five years, or potentially longer if FERC extends the order.

The Environmental Liability Shield

Here’s the provision that will raise eyebrows: If a utility is ordered by FERC to keep a plant running, and taking that action (or skipping a planned action) would normally violate a federal, state, or local environmental law, the utility is completely shielded. The bill explicitly states that the action “shall not be considered a violation” and the utility won't face fines or lawsuits under those environmental laws (SEC. 2).

Think about this in real-world terms. If a coal or gas plant was scheduled to be shut down because it was violating state clean air standards, FERC could order it to stay open for reliability. Under this bill, the utility could continue polluting past the legal deadline without penalty. For communities living near these facilities, this means older, dirtier power sources could stay active longer, overriding local or state environmental protections in the name of grid reliability.

Five Years’ Notice for Retirement

The bill also imposes a strict new rule on power plant owners. If they plan to permanently retire an electric generating unit (defined as anything producing 5 megawatts or more), they must notify FERC and affected state groups at least five years in advance. This gives grid operators and regulators a huge lead time to plan for replacement capacity. The only exception is if the unit has to retire immediately due to an “unplanned catastrophe, emergency, disaster, or something similar” that makes it unusable (SEC. 2).

This 5-year notice requirement is a major shift. It prevents utilities from surprising the market with sudden closures that could destabilize the grid. For grid planners, this is a clear win. For owners, it means they need to lock in their retirement plans much further out, removing flexibility. Overall, the Power Plant Reliability Act of 2025 prioritizes short-term grid stability and utility cost recovery, but it does so by creating a significant new loophole in environmental regulations and potentially extending the life of units that might otherwise be retired.