{"id":11381,"date":"2015-10-19T11:52:57","date_gmt":"2015-10-19T16:52:57","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=11381"},"modified":"2015-10-19T12:02:37","modified_gmt":"2015-10-19T17:02:37","slug":"firstenergys-consistency-or-lack-thereof","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2015\/10\/19\/firstenergys-consistency-or-lack-thereof\/","title":{"rendered":"FirstEnergy\u2019s Consistency \u2013 or Lack Thereof"},"content":{"rendered":"

\"carbon-895671_640<\/a>The list of things FirstEnergy isn\u2019t good at continues to grow. First it was transparency<\/a>. Then accuracy<\/a>. Now it\u2019s time to add consistency to the list.<\/p>\n

You\u2019ll recall that Ohio-based utility FirstEnergy is asking<\/a> the Public Utility Commission of Ohio (PUCO) to grant it a $3-billion bailout in order to keep operating uneconomic power plants. Years earlier, FirstEnergy spoke out in favor of deregulation \u2013 and the competition it enabled \u2013 and against government support. But the bailout request represents a complete reversal for the utility giant.<\/p>\n

De-regulate, no, re-regulate<\/strong><\/p>\n

Back in 2007, FirstEnergy\u2019s CEO regaled about the wonders of deregulation and competition. In testimony before the Ohio legislature, he declared<\/a>,<\/p>\n

Competition drives innovation, a desire to succeed, efforts to improve productivity, and lower prices. This basic reality applies to today\u2019s electricity markets \u2013 and it should remain a driving force for our business and industry in the years ahead.\u201d<\/p><\/blockquote>\n

Maybe he didn\u2019t mean the eight years between his testimony and the company\u2019s current efforts to restrict competition.<\/p>\n

[Tweet “FirstEnergy has shown itself to be consistently inconsistent #Ohio”]<\/p>\n

The story actually begins in 1999, when Ohio deregulated its electric utilities and required power companies to place their generators in a separate, unregulated subsidiary in order to participate in competitive markets. FirstEnergy happily established FirstEnergy Solutions and began making investments in new generating facilities and upgrading existing plants. Over the next eight years, the utility proudly declared it \u201cimproved the productivity of its generating fleet by 27 percent and added about 1,600 megawatts of capacity, at no risk to customers.\u201d<\/p>\n

The CEO in 2007 went so far as to say, \u201cOur employees quickly recognized that competition made them more productive, and our company more successful.\u201d<\/p>\n

So pleased was FirstEnergy with competition that, when some Ohio manufacturers wanted to re-regulate utilities with the hopes of getting lower rates, the emboldened utility huffed:<\/p>\n

\u201cFlip-flopping between regulation and competitive markets whenever one offers a lower price than the other undermines the ability of utilities to make the investment decisions needed to maintain reliable and adequate service. And, if the basic rules of our industry are rewritten every eight years of so \u2013 irrespective of the long-term impact of doing so \u2013 major providers of capital won\u2019t risk investing the billions of dollars it will take to meet Ohio\u2019s energy needs in the years ahead.\u201d<\/p>\n

Eight years later, of course, it is FirstEnergy that is flipping and flopping \u2013 now trying to move away from competition and back to being a protected and subsidized monopoly. FirstEnergy is asking for a bailout because its plants can\u2019t compete in regional electricity markets on their own. If it can\u2019t get the bailout, the utility says it would support<\/a> the Ohio legislature overturning its deregulation legislation, thus returning the power company to a monopoly protected from competitors.<\/p>\n

Talk about inconsistency. In 2007, the utility\u2019s CEO declared, \u201cIf re-regulation becomes a reality in Ohio, we should expect significant increases in regulated rates.\u201d He also mocked anyone who would \u201cavoid the real costs of producing and delivering electricity.\u201d Today, the power company tries to argue that it suffers from such costs, requiring monopoly protection to protect consumers and reduce the utility\u2019s risks.<\/p>\n

Government bad, no, government good<\/strong><\/p>\n

The utility giant also seems to have changed its tune on government support, or \u201cmandates.\u201d In 2007, the CEO said,<\/p>\n

Rather than relying on regulation and government mandates to meet our state\u2019s energy objectives, FirstEnergy believes the competitive marketplace will deliver better products and prices and drive innovation and efficiency improvements.\u201d<\/p><\/blockquote>\n

And, in 2015, FirstEnergy\u2019s lobbyists convinced<\/a> state legislators that clean energy incentives for energy efficiency and renewables were \u201cmandates\u201d that should be frozen indefinitely. Really, they just represented unwanted competition.<\/p>\n

Now FirstEnergy is asking for guaranteed profits for its expensive power plants. It seems the utility supports government mandates when they subsidize its uneconomic power plants, but it rails against any state action that might enable clean energy entrepreneurs to compete.<\/p>\n

FirstEnergy clearly favors whatever policy or stance benefits its interests at the time \u2013 not those of Ohioans.<\/p>\n

 <\/p>\n

This is one\u00a0in a series of posts that examine FirstEnergy\u2019s proposed bailout for its aging coal fleet and other market manipulations. Stay up to date on FirstEnergy by visiting EDF\u2019s\u00a0<\/em>website<\/em><\/a>, where we\u2019ve published helpful resources and will host a series of newsletters. If you would like to receive our FirstEnergy newsletter directly, please click\u00a0<\/em>here<\/em><\/a>.<\/em><\/p>\n

<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The list of things FirstEnergy isn\u2019t good at continues to grow. First it was transparency. Then accuracy. Now it\u2019s time to add consistency to the list. You\u2019ll recall that Ohio-based utility FirstEnergy is asking the Public Utility Commission of Ohio (PUCO) to grant it a $3-billion bailout in order to keep operating uneconomic power plants. …<\/p>\n","protected":false},"author":39893,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42996,46898,28800],"tags":[],"coauthors":[],"class_list":["post-11381","post","type-post","status-publish","format-standard","hentry","category-smart-power","category-firstenergy","category-ohio"],"acf":[],"yoast_head":"\nFirstEnergy\u2019s Consistency \u2013 or Lack Thereof - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2015\/10\/19\/firstenergys-consistency-or-lack-thereof\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FirstEnergy\u2019s Consistency \u2013 or Lack Thereof - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"The list of things FirstEnergy isn\u2019t good at continues to grow. 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