AEP / Coal / Duke Energy / FirstEnergy / Ohio Utility Bailouts

Money pit or fuel hedge? In Midwest, it depends who’s paying

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

WASHINGTON, DC — “How can two companies tell a federal judge that the 60-year-old coal plants are a financial albatross and simultaneously argue to utility regulators that the plants are a good investment for consumers? And rely on the work of the same consultant? The answer depends on who’s paying the bill.

Unlike industries vulnerable to disruptors such as Amazon.com Inc. and Uber Technologies Inc., electric utilities — even those in deregulated markets like Ohio — continue to press lawmakers and regulators to shield them from competition. And they’re doing so by playing on fears that letting plants shut down will lead to a shortage that will result in a price shock — or, worse yet, the lights going out.

…So far, two Ohio utilities, American Electric Power Co.’s Ohio utility and Dayton Power and Light Co., have gotten approval from Ohio regulators to subsidize the plants in the name of stabilizing consumer rates until at least 2024.

Those decisions are being appealed. The Office of the Ohio Consumers’ Counsel is challenging the AEP order at the Ohio Supreme Court, and environmental groups have asked PUCO to reopen the Dayton Power and Light case. The Duke request is still pending.

Other disputes involving the same troubled plants are playing out before the Ohio Legislature and state Supreme Court, the Federal Energy Regulatory Commission, and the U.S. bankruptcy court.”

— Jeffrey Tomich, E & E News

read more

Tags: