Sunday, April 10, 2011

BP's Federal Teats

BP's federal assistance arose in two news stories.  The first regarded BP Wind Energy's expansion in West Texas.  The company will install 60 turbines east of Fort Stockton.  GreenTech Media reported:

On the federal level, President/CEO John Graham focused on two matters with one theme. “The tax incentives and grants,” he said, “are very important as the industry develops to keep the price of wind competitive.” 

BP Corporation North America received  $5.3 million from Uncle Sam via the Early Retiree Reinsurance Program (ERRP).  That's small change compared to AT&T's $140 million or Verizon's nearly $92 million.

Other companies getting ERRP money include:

CITGO Petroleum--$1.2 million
Marathon Oil Company--$1.7 million
Valero Energy--$1 million
Shell Oil--$4.4 million

Arch Coal--$216,000
Patriot Coal--$4.6 million
A.T. Massey Coal-yet to file a claim

ERRP paid out nearly $1.8 billion as of March 17, 2011.  Employers wanting to join BP on the federal teat may need to rush their application.  The cutoff date is May 5.  Modern Healthcare reported:

Based on spending trends, the CMS said it would no longer accept new employer applicants after May 5. The program began disbursing payments to plan sponsors last October for claims incurred after June 1, 2010.

Belly on up to the bar, boys...  Uncle Sam is buying!  (At least until May 5th)