Coal / Energy / FirstEnergy

FirstEnergy making push for new plan, opponents dub it a coal plant bailout

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COLUMBUS — “AEP tried it. Duke Energy tried. And now FirstEnergy is taking a swing at what’s known as a Power Purchase Agreement. This is a plan to pass part of the costs of operating power plants on to the ratepayers.

The proposal would impact the Davis-Besse nuclear plant in Ottawa County and several coal plants.

FirstEnergy’s Bill Ridmann says the typical ratepayer would see their monthly bill go up an average of $2.20 over the first three years.

“But after the first three years under our projections—basically—we start to return money to customers and so it’s the returning the money to customers over the next 12 years of the plan—it’s a 15 year plan—where the benefits to customers come into play. And that’s worth $2 billion,” said Ridmann.

Those are FirstEnergy’s estimates. But other groups are not convinced. The Ohio Consumers’ Counsel believes FirstEnergy’s plan would actually end up costing customers $3 billion over the course of 15 years. ”

— Andy Chow, Statehouse News Bureau

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