Regulators in Ohio make two deals to subsidize older power plants in the area

In Ohio, regulators have approved two energy deals on Thursday that would be beneficial to their area. The two utility companies are allowed to imposed short-term rate increases to subsidize the use of older coal-fired and nuclear power plants.

According to Herald Dispatch, the Public Utilities Commission of Ohio made a single combined vote for the power purchase of two companies, Akron-based FirstEnergy and Columbus-based AEP. The deal is known to have attracted several written testimony, websites, email-writing campaigns, even sparring in the television ads. This testimonies and websites are due to some of the consumers belief that the change in U.S. energy market should be driving prices down, and not increasing it while forcing plants to close.

Furthermore, opponents already hinted that they'll be challenging the decision of the commission as they're asking the Federal Energy Regulatory to intervene in the situation. However, it could take up to 2 months before a hearing could be requested and therefore, a lawsuit be filed.

Yahoo reported that with these proposals at hand, the two power companies get profit guarantee to cover the operational costs at certain coal and nuclear plants as they're planning to modernize the power grid while getting a cleaner energy source. PUCO Chairman Andre Porter said the deals have made a lot of concerns to address. The chairman then indicated that in the eight-year plan, FirstEnergy will try to stabilize customer bills while the AEP's plan is to minimize consumer impact.

But not everyone is still delighted with this change. As Daily Mail wrote, the Alliance for Energy Choice opposed the idea, saying it was a disappointment that the commissioners didn't reject both the deals.

Todd Snitcher, former PUCO Chairman, said "We hoped that the PUCO would heed the outcry of thousands of Ohio consumers who deluged the offices of the PUCO, Governor (John) Kasich and state legislators with more than 100,000 calls, letters and emails denouncing FirstEnergy's and AEP's schemes to charge customers above-market rates, with absolutely no benefit to consumers." 

Meanwhile, Akron Mayor Daniel Horrigan believe the decision is beneficial for Ohio and Akron. He added that this benefitting is an essential economic driver for the city, state and region. 

Tags

Ohio, akron, puco, first energy, aep, Public utilities commission of ohio, energy market, power plants, two deals, coal-fired, nuclear power plants

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