{"id":17389,"date":"2019-01-04T09:00:20","date_gmt":"2019-01-04T14:00:20","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=17389"},"modified":"2019-01-03T16:19:21","modified_gmt":"2019-01-03T21:19:21","slug":"will-the-ohio-supreme-court-shut-down-firstenergys-bailout-once-and-for-all","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2019\/01\/04\/will-the-ohio-supreme-court-shut-down-firstenergys-bailout-once-and-for-all\/","title":{"rendered":"Will the Ohio Supreme Court shut down FirstEnergy\u2019s bailout once and for all?"},"content":{"rendered":"

\"\"<\/a>Update: The oral argument for FirstEnergy\u2019s case at the Ohio Supreme Court \u2013 described below \u2013 will begin on January 9, 2019, and a ruling is expected later this year.\u00a0<\/em><\/p>\n

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 (PUCO) approved more than $600 million in customer-funded subsidies<\/a>.<\/p>\n

The money was intended to help improve the credit ratings of FirstEnergy and its parent company, FirstEnergy Corp. But the parent company\u2019s supposed financial hardship is not the responsibility of the utility\u2019s customers, nor is it under the PUCO\u2019s purview.<\/p>\n

In their brief to the Ohio Supreme Court<\/a>, Environmental Defense Fund (EDF), Ohio Environmental Council (OEC), and Environmental Law and Policy Center (ELPC) explain why the bailout is unreasonable and should be overturned \u2013 which would send a clear signal to other subsidy-seeking coal companies across the country.<\/p>\n

[Tweet “Will the Ohio Supreme Court shut down FirstEnergy\u2019s bailout once and for all?”]<\/p>\n

History of subsidy-seeking<\/strong><\/p>\n

FirstEnergy first sought a bailout in 2014. The PUCO approved FirstEnergy\u2019s initial proposal, which would have cost customers $4 billion. Fortunately, regulators at the Federal Energy Regulatory Commission (FERC) ruled that the bailout scheme was illegal<\/a>. Because the power plants operate in the competitive wholesale market (over which FERC has jurisdiction \u2013 not Ohio), FERC declared that FirstEnergy\u2019s captive utility customers couldn\u2019t be forced to pay for them.<\/p>\n

In an attempt to work around the FERC ruling, the utility revised its bailout plan, and the PUCO approved it<\/a> \u2013 allowing FirstEnergy to collect more than $600 million from its customers. So far, customers have already contributed over $150 million<\/a>. Sadly, rather than requiring the utility to use the money for grid improvements, the PUCO\u2019s approval is broad enough to allow FirstEnergy to send the entire amount to its parent company for credit support, such that customers would receive no benefit.<\/p>\n

Supreme Court stepping in?<\/strong><\/p>\n

Ohio law prohibits using the money to directly support the failing coal and nuclear plants, but FirstEnergy could do so indirectly. That\u2019s because the PUCO gave the money to the utility, which could\u00a0 transfer all of the funds to its parent company. FirstEnergy\u2019s parent company could then use these revenues to help out the power plants, so EDF, OEC, and ELPC are challenging the bailout<\/a> at the Ohio Supreme Court. The Court will schedule a date for the parties to present their oral arguments, then we\u2019ll wait for the Court\u2019s ruling, expected before the end of the year.<\/p>\n

FirstEnergy is leading the pack of the subsidy-seekers, but it\u2019s not alone: Other utilities have also sought bailouts for their old coal plants. These utilities simply don\u2019t want the competitive market to operate the way it has been designed \u2013 i.e.<\/em>, to shut down old, inefficient energy technologies that are losing money.<\/p>\n

EDF has consistently opposed FirstEnergy\u2019s bailout requests and we are continuing the fight in this case. The utility is nearing the end of its rope \u2013 FirstEnergy\u2019s CEO recently announced that the affiliate that operates these plants will probably file bankruptcy soon<\/a>.<\/p>\n

We hope the Supreme Court rejects the bailout, and sends a clear signal to other coal-heavy companies looking for handouts at the state and national level. This would show support for competitive markets around the country, and create more opportunity for clean energy solutions.<\/p>\n

This post was originally published on March 19, 2018.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Update: The oral argument for FirstEnergy\u2019s case at the Ohio Supreme Court \u2013 described below \u2013 will begin on January 9, 2019, and a ruling is expected later this year.\u00a0 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, …<\/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":[46898,28800],"tags":[],"coauthors":[],"class_list":["post-17389","post","type-post","status-publish","format-standard","hentry","category-firstenergy","category-ohio"],"acf":[],"yoast_head":"\nWill the Ohio Supreme Court shut down FirstEnergy\u2019s bailout once and for all? - 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\/2019\/01\/04\/will-the-ohio-supreme-court-shut-down-firstenergys-bailout-once-and-for-all\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Will the Ohio Supreme Court shut down FirstEnergy\u2019s bailout once and for all? - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"Update: The oral argument for FirstEnergy\u2019s case at the Ohio Supreme Court \u2013 described below \u2013 will begin on January 9, 2019, and a ruling is expected later this year.\u00a0 For years, FirstEnergy has been seeking a bailout for its uneconomic coal and nuclear plants. 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