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FirstEnergy and its supportive legislators have tied themselves in knots to sell their bailout bill (HB 6), a $1.4 billion money grab by a publicly traded company and its speculative, out-of-state investors that made a bad bet on a declining business.

They’ve been lying to Ohioans, claiming that HB 6 is a panacea that will clean the air, preserve local jobs and keep the lights on across Ohio. But it isn’t about any of that. And it’s barely about Ohio. Ohioans deserve to know the truth, and the legislature should reject this dishonest bill.

FirstEnergy claims it needs $150 to $190 million a year from Ohioans to keep two old nuclear plants online. And this would be the fifth time Ohioans will have paid for these plants. They first paid when the plants were built. They paid again in 1999 when the electricity market was restructured. They paid again when companies were allowed to add plants back into their supply plans in 2008. And finally, they’ve paid via the bailout ruling approved by the Public Utilities Commission of Ohio in 2016.

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Update: On August 20, the Ohio Supreme Court rejected FirstEnergy’s motion for reconsideration of “credit support” charges approved by state regulators in 2016. The Supreme Court ordered the charge be removed, saying state regulators had failed to place the necessary conditions on how FirstEnergy spent the subsidies. 

In the three years’ time the appeals process has taken, FirstEnergy has collected nearly all of the $600 million it was seeking. Current law states that FirstEnergy gets to keep the $600 million rather than refund it to customers. Environmental Defense Fund and our partners have been working hard to change the refund law and today’s ruling should give added momentum to this effort.

The Ohio Supreme Court today rejected FirstEnergy’s “credit support” charges approved by state regulators in 2016. The Supreme Court ordered the charge be removed, saying state regulators had failed to place the necessary conditions on how FirstEnergy spent the subsidies.

For years, FirstEnergy has been seeking a bailout for its uneconomic coal and nuclear plants. The Ohio-based utility finally got its wish in late 2016, when the Public Utilities Commission of Ohio approved more than $600 million in customer-funded subsidies.

Today the Ohio Supreme Court ruled that those customer funded subsidies must be removed. In the three years’ time the appeals process has taken, FirstEnergy has collected nearly all of the $600 million it was seeking. Current law states that FirstEnergy gets to keep the $600 million rather than refund it to customers. We have been working hard to change the refund law and today’s ruling should give added momentum to this effort.

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For years, FirstEnergy has been looking for a get-out-of-bad-debt card to save it from its failing coal and nuclear plants. First, it tried for a $3 billion bailout from the Ohio Public Utility Commission (PUCO) and failed. Then it went begging in Washington for a federal bailout and failed. It won a $600 million bailout from the PUCO that Environmental Defense Fund is appealing to the Ohio Supreme Court.

Now it has convinced some Columbus lawmakers to introduce H.B. 6, a $300 million per year subsidy to keep the company’s flagging coal and nuclear plants alive and simultaneously kill clean energy standards that have made Ohioans’ air cleaner and created thousands of jobs in the state. H.B. 6 will increase utility bills by $300 million a year for all utility customers, even if they buy their electricity from other suppliers. It’s a corporate handout, plain and simple, and it flies in the face of free market principles. Legislators that value the free market should reject it outright.

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