COLUMBUS – The Environmental Defense Fund says it is confident that federal regulators and the courts will not let agreements raising rates on Ohio electricity customers stand.
In a statement Thursday, the national group said the deals “keep outdated, inefficient power plants afloat for the next eight years at an estimated cost of $6 billion to Ohio customers.”
Public Utilities Commission of Ohio unanimously passed the power purchase agreements for Columbus-based AEP and Akron-based FirstEnergy Thursday.
Chairman Andre Porter said in remarks ahead of the vote that the deals were amended to stabilize customer bills and ensure the end result is in the best interests of customers.
The deals allow the companies to impose short-term rate increases on electricity customers to subsidize some older coal-fired and nuclear power plants.
The decision was met by criticism from environmental and consumer groups and Statehouse Democrats.
“It is shameful that our state utility watchdog is making Ohio consumers pay more on their electric bills to ensure even bigger profit margins and bonuses for corporate CEOs,” said Rep. Teresa Fedor (D-Toledo) who characterized the deals as corporate bailouts.
While noting that the AEP deal commits the company to building enough new wind power infrastructure to power 450,000 Ohio homes, the nonpartisan state policy research institute Policy Matters said the agreement with FirstEnergy “contains a fraction of the benefits. It short-circuits the competitive market Ohio has used since deregulation to guarantee consumers the best prices.”
The deal was supported by the PUCO staff, Sierra Club, Ohio Partners for Affordable Energy, the Ohio Energy Group, the Ohio Hospital Association and a half-dozen other groups.
AEP has committed to converting two generating units at Conesville, in Coshocton County, and another at Brilliant, in Jefferson County, to 100 percent natural gas by 2030. The utility also said it would generate at least 900 megawatts of power through solar and wind components over the next five years.
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