{"id":13180,"date":"2016-05-11T16:40:52","date_gmt":"2016-05-11T21:40:52","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=13180"},"modified":"2016-05-11T16:41:29","modified_gmt":"2016-05-11T21:41:29","slug":"rubber-stamp-regulators-ohio-gives-firstenergy-another-go-ahead","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2016\/05\/11\/rubber-stamp-regulators-ohio-gives-firstenergy-another-go-ahead\/","title":{"rendered":"Rubber-Stamp Regulators: Ohio Gives FirstEnergy Another Go-Ahead"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-13183\" src=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2016\/05\/approved-pixabay-300x170.jpg\" alt=\"approved-pixabay\" width=\"300\" height=\"170\" srcset=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2016\/05\/approved-pixabay-300x170.jpg 300w, https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2016\/05\/approved-pixabay-768x435.jpg 768w, https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2016\/05\/approved-pixabay.jpg 960w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>At least in theory, government officials are supposed to monitor electric utilities and ensure they do not abuse their monopoly power. For more than a century, these independent regulators have protected customers from unfair, above-market prices and provided a check on giant corporations.<\/p>\n<p>That social contract is being tested in Ohio.<\/p>\n<p>In an unprecedented move, the Public Utilities Commission of Ohio (PUCO) today <a href=\"http:\/\/dis.puc.state.oh.us\/TiffToPDf\/A1001001A16E11B40704D04230.pdf\">allowed<\/a> FirstEnergy to seek a new power plant bailout \u2013 a full day before opponents were to offer their objections. So, without listening to the arguments against the deal, the PUCO rubberstamped the utility\u2019s request for a rehearing.<\/p>\n<p>Unfortunately, this is not the PUCO\u2019s first rubber-stamping. FirstEnergy\u2019s <a href=\"https:\/\/blogs.edf.org\/energyexchange\/2015\/08\/30\/everything-you-need-to-know-about-firstenergys-bailout-request\/\">original proposal<\/a> would have forced customers to pay $4 billion to subsidize the utility\u2019s old and dirty power plants, which could no longer compete in the market. That proposal was almost laughable since the power plants were not needed, and certainly not at such a high price \u2013 other companies proposed to offer the same amount of electricity at significantly lower prices.<!--more--><\/p>\n<p>Many organizations and advocates <a href=\"http:\/\/www.cleveland.com\/business\/index.ssf\/2015\/12\/firstenergy_opponents_have_sha.html\">spoke out<\/a> against the deal. But even though groups like the Ohio Consumers\u2019 Counsel and Ohio Manufacturers\u2019 Association complained the subsidies would hurt the state\u2019s customers and industries, the PUCO granted the politically-powerful utility\u2019s bailout \u2013 in less than six minutes of formal consideration.<\/p>\n<p>To the agency\u2019s great embarrassment, the Federal Energy Regulatory Commission (FERC) quickly <a href=\"https:\/\/blogs.edf.org\/energyexchange\/2016\/05\/02\/ohio-failed-to-protect-customers-and-markets-so-federal-regulators-came-to-the-rescue\/\">overturned<\/a> the original PUCO decision, declaring Ohio\u2019s subsidies illegally distorted competitive markets. (FERC has jurisdiction over wholesale power markets, of which Ohio is a part.)<\/p>\n<p>FirstEnergy responded with a <a href=\"https:\/\/blogs.edf.org\/energyexchange\/2016\/05\/04\/a-bailout-by-any-other-name-firstenergy-still-trying-to-stick-it-to-ohio-customers\/\">sleight of hand<\/a>, asking the PUCO to send the subsidy to its <em>distribution<\/em>-monopoly affiliate rather than its <em>generation<\/em>-company affiliate \u2013 a creative move to avoid further FERC oversight. Most likely FERC will see through this sham, but that doesn\u2019t seem to be stopping the PUCO from pushing through FirstEnergy\u2019s radically \u201cnew\u201d proposal.<\/p>\n<p>Although regulators and the regulated should be separated, the relationship in Ohio appears to be quite cozy. For example, the announcement of the recent PUCO chairman\u2019s departure came not from the PUCO but, amazingly enough, from <a href=\"http:\/\/www.bizjournals.com\/columbus\/news\/2016\/04\/27\/puco-chairman-andre-porter-leaving-after-just-1.html\">FirstEnergy\u2019s own chairman<\/a>, who praised the regulator for doing a great job.<\/p>\n<p>The PUCO\u2019s action today suggests commissioners care more about appeasing a politically-connected company than protecting customers or considering both sides of an argument. That decision should make the Ohio Supreme Court realize these regulators are not independent, nor are they fulfilling their primary purpose: regulating fairly. Since FirstEnergy\u2019s new proposal still reflects illegal exchanges among the utility\u2019s affiliates, it will further embarrass the PUCO when federal regulators or the Ohio Supreme Court rule against the new bailout proposal.<\/p>\n<p>Perhaps more importantly, today\u2019s PUCO ruling forces a reconsideration of the regulatory contract. We need independent oversight of monopolies. We need regulating rather than rubber-stamping.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At least in theory, government officials are supposed to monitor electric utilities and ensure they do not abuse their monopoly power. For more than a century, these independent regulators have protected customers from unfair, above-market prices and provided a check on giant corporations. That social contract is being tested in Ohio. In an unprecedented move, &#8230;<\/p>\n","protected":false},"author":39893,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46898,28800],"tags":[],"coauthors":[],"class_list":["post-13180","post","type-post","status-publish","format-standard","hentry","category-firstenergy","category-ohio"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Rubber-Stamp Regulators: Ohio Gives FirstEnergy Another Go-Ahead - 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\/2016\/05\/11\/rubber-stamp-regulators-ohio-gives-firstenergy-another-go-ahead\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rubber-Stamp Regulators: Ohio Gives FirstEnergy Another Go-Ahead - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"At least in theory, government officials are supposed to monitor electric utilities and ensure they do not abuse their monopoly power. 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