FirstEnergy and AEP, companies that generate and sell electricity in Ohio and other parts of the U.S., want residential consumers and businesses to pay $6 billion over eight years to subsidize their old, coal-burning and nuclear power plants.
These utility companies are seeking power purchase agreements, or PPAs, from the Public Utilities Commission of Ohio (PUCO) that will force consumers and businesses to pay above-market, unrealistic rates to subsidize plants that are no longer cost-effective to operate. The companies didn’t plan wisely and now expect Ohio residential consumers and business owners to give them handouts. They’re at the PUCO now cutting backroom deals, without any comments from Ohioans, to guarantee corporate profits and protect shareholder dividends.
These companies have threatened plant shut-downs and warned that consumers and businesses will no longer have a reliable power supply. Their threats are ploys to instill fear, and these claims that the power supply will be harmed are simply and completely untrue. They want to block competition and re-regulate energy to benefit themselves and their shareholders to the detriment of Ohio consumers and businesses.
A group of eight energy generators and suppliers launched the Alliance for Energy Choice and denounced the power purchase agreements that guarantee consumer-paid subsidies.
The issue shouldn’t be decided on what’s best for AEP’s and FirstEnergy’s executives and investors. Rather, what’s best for everyone in Ohio.
The five appointed PUCO commissioners are expected to vote on the plans in March.