{"id":14720,"date":"2017-01-12T05:59:43","date_gmt":"2017-01-12T11:59:43","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=14720"},"modified":"2017-01-12T06:02:41","modified_gmt":"2017-01-12T12:02:41","slug":"ohio-has-another-subsidy-seeking-utility-on-its-hands","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2017\/01\/12\/ohio-has-another-subsidy-seeking-utility-on-its-hands\/","title":{"rendered":"Ohio Has Another Subsidy-Seeking Utility on its Hands"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-14723\" src=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2017\/01\/power-lines-unsplash-300x200.jpg\" alt=\"power lines unsplash\" width=\"300\" height=\"200\" srcset=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2017\/01\/power-lines-unsplash-300x200.jpg 300w, https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2017\/01\/power-lines-unsplash-768x512.jpg 768w, https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2017\/01\/power-lines-unsplash-1024x683.jpg 1024w, https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2017\/01\/power-lines-unsplash.jpg 1080w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Another year, and another Ohio utility is sidling up to the trough for a bailout.<\/p>\n<p>Dayton Power &amp; Light (DP&amp;L) is asking for $1 billion over seven years, and the Public Utilities Commission of Ohio (PUCO) will soon hold a hearing on the application. And like its fellow Ohio subsidy-seeker, <a href=\"https:\/\/blogs.edf.org\/energyexchange\/2016\/10\/13\/ohio-regulators-deliver-undoubtedly-unconventional-decision-in-firstenergy-bailout-case\/\">FirstEnergy<\/a>, DP&amp;L is veiling its billion-dollar request with talk of making the grid smarter and more modern.<\/p>\n<p>No doubt grid modernization is a worthy investment. The only problem is, DP&amp;L will not commit to spending any of the requested funding on grid modernization, but only offers that it <em>may<\/em> do so. Since DP&amp;L won\u2019t commit to modernizing the grid, it\u2019s more likely the utility wants to spend the funds for other purposes, such as shoring up its balance sheet, paying off old debt, and operating its old power plants.<\/p>\n<p>Although Environmental Defense Fund (EDF) supports grid modernization, we <a href=\"http:\/\/dis.puc.state.oh.us\/TiffToPDf\/A1001001A16K23B03050I01412.pdf\">do not support<\/a> DP&amp;L\u2019s proposal because the utility could divert the funding for these other purposes, which would be harmful for customers and the environment.<!--more--><\/p>\n<p><strong>Ohio bailout background<\/strong><\/p>\n<p>As noted, DP&amp;L is not alone in its efforts to obtain subsidies from Ohio regulators.<\/p>\n<p>Last year, the PUCO <a href=\"https:\/\/blogs.edf.org\/energyexchange\/2016\/04\/12\/it-aint-over-til-its-over-ohio-bailout-battle-marches-on\/\">approved<\/a> bailouts totaling $6 billion for FirstEnergy and AEP\u2019s old, uneconomic power plants. EDF and other parties have consistently opposed these bailouts because they force customers to pay higher prices, and interfere with market forces that allow new wind and solar plants to compete and provide power.<\/p>\n<p>[Tweet &#8220;Ohio Has Another Subsidy-Seeking Utility on its Hands&#8221;]<\/p>\n<p>Fortunately, the Federal Energy Regulatory Commission (FERC) recognized the affront to competitive markets and <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> FirstEnergy and AEP\u2019s bailout plans. The PUCO later approved much smaller bailouts for both companies.<\/p>\n<p><strong>A third player<\/strong><\/p>\n<p>DP&amp;L\u2019s original 10-year <a href=\"http:\/\/ieefa.org\/yet-another-utility-bailout-works-ohio\/\">bailout plan<\/a> would have forced all customers to pay for the utility\u2019s old, high-cost coal plants. That\u2019s because utilities still have a monopoly on service territories, so DP&amp;L will deliver your electricity if you live in their territory \u2013 even if you buy your electricity from another provider.<\/p>\n<p>Yet FERC\u2019s ruling deemed that type of request unlawful. So, DP&amp;L revised its proposal to seek $1 billion over seven years for grid modernization. <div class=\"simplePullQuote right\"><p>Ohio is serving as <a href=\"http:\/\/www.powermag.com\/surprising-ground-zero-electricity-market-fights\/\">ground zero<\/a> for electricity market debates.<\/p>\n<\/div><\/p>\n<p>The request is closer to\u00a0a no-strings-attached subsidy. DP&amp;L could easily spend the money on paying off old debt, for example, without the need to show any connection to grid-modernization efforts.<\/p>\n<p>As evidenced by the ongoing bailout battles, Ohio is serving as <a href=\"http:\/\/www.powermag.com\/surprising-ground-zero-electricity-market-fights\/\">ground zero<\/a> for electricity market debates. The state\u2019s renewable and energy efficiency standards recently <a href=\"https:\/\/t.co\/remzySANpA\">came back<\/a> into effect, a positive sign for a future in which clean energy powers Ohio\u2019s economy reliably and affordably. Yet coal-heavy utilities will continue to fight progress, and EDF will continue to work to ensure harmful subsidies, like the ones DP&amp;L is requesting, do not get in the way of building a cleaner, healthier energy system.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Another year, and another Ohio utility is sidling up to the trough for a bailout. Dayton Power &amp; Light (DP&amp;L) is asking for $1 billion over seven years, and the Public Utilities Commission of Ohio (PUCO) will soon hold a hearing on the application. And like its fellow Ohio subsidy-seeker, FirstEnergy, DP&amp;L is veiling its &#8230;<\/p>\n","protected":false},"author":12461,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27600],"tags":[],"coauthors":[],"class_list":["post-14720","post","type-post","status-publish","format-standard","hentry","category-utilities"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Ohio Has Another Subsidy-Seeking Utility on its Hands - 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\/2017\/01\/12\/ohio-has-another-subsidy-seeking-utility-on-its-hands\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ohio Has Another Subsidy-Seeking Utility on its Hands - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"Another year, and another Ohio utility is sidling up to the trough for a bailout. Dayton Power &amp; Light (DP&amp;L) is asking for $1 billion over seven years, and the Public Utilities Commission of Ohio (PUCO) will soon hold a hearing on the application. And like its fellow Ohio subsidy-seeker, FirstEnergy, DP&amp;L is veiling its ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blogs.edf.org\/energyexchange\/2017\/01\/12\/ohio-has-another-subsidy-seeking-utility-on-its-hands\/\" \/>\n<meta property=\"og:site_name\" content=\"Energy Exchange\" \/>\n<meta property=\"article:published_time\" content=\"2017-01-12T11:59:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2017-01-12T12:02:41+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2017\/01\/power-lines-unsplash-300x200.jpg\" \/>\n<meta name=\"author\" content=\"John Finnigan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"John Finnigan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/blogs.edf.org\/energyexchange\/2017\/01\/12\/ohio-has-another-subsidy-seeking-utility-on-its-hands\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/blogs.edf.org\/energyexchange\/2017\/01\/12\/ohio-has-another-subsidy-seeking-utility-on-its-hands\/\"},\"author\":{\"name\":\"John Finnigan\",\"@id\":\"https:\/\/blogs.edf.org\/energyexchange\/#\/schema\/person\/e4e06d0ac3c4cbe9f823ba21e6ab8b23\"},\"headline\":\"Ohio Has Another Subsidy-Seeking Utility on its Hands\",\"datePublished\":\"2017-01-12T11:59:43+00:00\",\"dateModified\":\"2017-01-12T12:02:41+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/blogs.edf.org\/energyexchange\/2017\/01\/12\/ohio-has-another-subsidy-seeking-utility-on-its-hands\/\"},\"wordCount\":521,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/blogs.edf.org\/energyexchange\/2017\/01\/12\/ohio-has-another-subsidy-seeking-utility-on-its-hands\/#primaryimage\"},\"thumbnailUrl\":\"http:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2017\/01\/power-lines-unsplash-300x200.jpg\",\"articleSection\":[\"Utility Business Models\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/blogs.edf.org\/energyexchange\/2017\/01\/12\/ohio-has-another-subsidy-seeking-utility-on-its-hands\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/blogs.edf.org\/energyexchange\/2017\/01\/12\/ohio-has-another-subsidy-seeking-utility-on-its-hands\/\",\"url\":\"https:\/\/blogs.edf.org\/energyexchange\/2017\/01\/12\/ohio-has-another-subsidy-seeking-utility-on-its-hands\/\",\"name\":\"Ohio Has Another Subsidy-Seeking Utility on its Hands - 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