TOLEDO – Ohio has become the latest state to hand out a billion-dollar financial rescue for its nuclear power plants.
Hours after lawmakers approved the legislation giving $150 million a year to the plants near Cleveland and Toledo, Republican Gov. Mike DeWine quickly signed the plan Tuesday, which will tack a new fee onto every electricity bill in Ohio while scaling back requirements that utilities generate more power from wind and solar.
Opponents argued the bill forced Ohio utility customers to subsidize the ailing plants while hurting job growth in emerging clean energy industries by eliminating the state’s renewable-energy and energy-efficiency programs, though it does provide some funds for solar and wind power.
“Bailouts for corporations shouldn’t come on the backs of hardworking Ohioans,” said Rep. Erica Crawley (D-Columbus).
FirstEnergy Solutions had been warning the plants would close within two years unless the government steps in and helps.
Supporters, led by Republicans in the GOP-dominated legislature, claimed ratepayers will save more than $1.3 billion over the next nine years.
“We are reducing consumers’ bills, repealing wasteful government mandates and keeping good-paying jobs here in Ohio. This is legislation that makes sense for the ratepayers of Ohio,” House Speaker Larry Householder (R-Glenford) said.
Citing a report from the Legislative Services Commission, Householder says the bill will save American Electric Power residential customers approximately $4.37 per month by 2028 and the average residential customer in Ohio will save $2.77 per month starting in 2021.
Many of the nation’s nuclear plants are struggling to compete with cheaper energy sources.
New York, New Jersey and Illinois are among states that have given out big bailouts to stop the power plants from closing.