AEP / Coal / Energy / Solar Energy

Coal subsidy, solar project tangled in case before Ohio Supreme Court

Ohio Valley Electric Corp.’s 1,304-megawatt Clifty Creek coal plant in Madison, Ind. Crowezr/Wikimedia Commons.

COLUMBUS — “The fate of a pair of 1950s-era coal plants and the largest solar project ever proposed in Ohio are entangled in a single case before the state’s Supreme Court.

American Electric Power agreed to build the 400-megawatt solar project in Appalachian Ohio as part of a controversial settlement over subsidies for two Ohio Valley Electric Corporation coal plants. AEP is an OVEC shareholder.

That settlement was challenged by customer advocates and in June was heard by the Ohio Supreme Court. Although oral argument focused on the coal plants, the decision in the case could perhaps unravel the entire arrangement.

At issue is whether a utility in Ohio’s deregulated electricity market should get generation costs and profits guaranteed while investors in other projects have to put their own money on the line when building and operating generation sources. ”

— Kathiann M Kowalski, Midwest Energy News

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