PUCO Rejects Deal To Have Ratepayers Subsidize a Coal-Fired Power Plant

"COLUMBUS, Ohio -- The Public Utilities Commission of Ohio made history Wednesday in a ruling refusing to allow AEP Ohio to saddle ratepayers with extra charges to subsidize the continued operation of a 1950s-era coal-fired power plant that it owns along with FirstEnergy and other state utilities.

The decision to reject AEP's request for a subsidy -- immediately applauded by some consumer and environmental groups -- sends a shot over the bow of FirstEnergy's similar proposal and could jeopardize the continued operation of the Davis-Besse nuclear power plant and the W.H. Sammis coal-fired power plant on the Ohio River.

FirstEnergy has argued that it cannot guarantee the continued operation of Sammis and Davis-Besse without a special "power purchase agreement" or PPA, that would force all FirstEnergy customers to pay extra charges to keep Sammis and Davis-Besse running even though the electricity they generate is often more expensive than the power available in wholesale markets."

John Funk reports for the Cleveland Plain Dealer February 25, 2015.

Source: Cleveland Plain Dealer, 02/27/2015