Selected tag(s): PUCO

Ohio’s FirstEnergy Gains Hundreds of Millions, but Still Wants More

packs-163497_1280At FirstEnergy, too much is never enough.

According to one Wall Street analyst, the Ohio-based utility “benefitted substantially” from recent auctions by PJM, the electric grid manager in the Midwest and Mid-Atlantic. In fact, it appears the company’s bounty for the next two years is $435 million more than it was projected to earn.

This is a direct result of FirstEnergy and other utilities’ successful efforts earlier this year to convince PJM to change how its electricity auctions were structured.

After the Polar Vortex of 2014, when many power plants shut down because they couldn’t obtain fuel over frozen pipelines or highways, the utilities argued PJM should provide higher payments for power plants that could provide reliable electricity in winter months as well as in the summer when air conditioning demands are high. The change, of course, would provide more revenue to coal-fired and nuclear-fired units that tend to run consistently, including FirstEnergy’s old and inefficient power plants.

You might think FirstEnergy would celebrate its success in redesigned power markets. But you would be wrong. Despite the auction windfall, the company maintains it still needs the Public Utility Commission of Ohio (PUCO) to approve a $3 billion bailout from Ohio customers to keep its inefficient, dirty power plants running. Fortunately, it appears the PUCO staff has seen right through this request. Read More »

Posted in Clean Energy, FirstEnergy, General, Ohio| Also tagged | Comments are closed

Another Ohio Utility Seeks a Bailout When It Should be Upgrading the Grid

coal smoke morguefileFirstEnergy isn’t the only utility trying to stick Ohioans with the cost of its poor business decisions.

AEP Ohio has also presented a similar proposal to bail out several old, uneconomic coal plants, asking the Public Utilities Commission of Ohio (PUCO) to guarantee the purchase of power produced by its coal plants. The utility tried the same tactic earlier this year and failed, but is now back with an updated proposal. Last week, Environmental Defense Fund (EDF) filed testimony opposing the deal and recommended that AEP Ohio should invest in grid upgrades if the PUCO decides to approve AEP Ohio’s proposal.

Ohio has a competitive retail electric market, meaning customers can buy electricity from many different sellers. But utilities still have a monopoly when it comes to service territories. So if you live in AEP Ohio’s territory, the company will deliver your electricity – even if you purchase it from a different provider. Since AEP Ohio’s bailout proposal applies to its entire service area, essentially the utility wants to force all of those customers to pay for its coal plants, including those who don’t buy their electricity from AEP Ohio. Read More »

Posted in Ohio| Also tagged , , | Comments are closed
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