Nuclear bailout plan for Ohio changed again

Ohio’s nuclear ‘bailout’ bill changed again. Here’s what you need to know.

Jessie Balmert, Cincinnati EnquirerPublished 6:04 p.m. ET June 26, 2019 COLUMBUS – Ohio’s bailout of two nuclear plants once again includes renewable energy from solar to wind energy, but changes might not appease critics of the controversial plan.

A panel of state senators on Wednesday made big changes to House Bill 6, which generated controversy for providing a hefty bailout to First Energy Solutions’ Ohio nuclear plants while scrapping programs favored by wind and solar generators.

“All ratepayers in Ohio will share the cost of the nuclear relief,” said Sen. Steve Wilson, R-Maineville, who leads the Senate committee reviewing the bill. The same is true for subsidies for two coal plants, energy efficiency and renewable energy requirements.

Opponents said the bill remains a “bailout.” The bill “guts clean energy programs,” said Dick Munson, director of Midwest Clean Energy for Environmental Defense Fund.

Here’s what you need to know about the bill.

Money for nuclear plants

The latest version of the bill would give up to $150 million a year to FirstEnergy Solutions, which operates the two nuclear plants outside of Toledo and Cleveland, starting in 2020. …….

If approved, FirstEnergy Solutions would get that $150 million in 2020. Starting in 2021, the Public Utilities Commission of Ohio would audit the company’s finances.

If the company’s finances improved, FirstEnergy Solutions would receive less money from the state and its ratepayers. Opponents fear PUCO won’t adequately monitor the company, citing a recent Ohio Supreme Court decision that found FirstEnergy overcharged customers.

The audits would not occur in the first two years to give the company a chance to emerge from bankruptcy, a Senate spokesman said. …..

Renewable energy

The Senate saved renewable energy benchmarks – requirements that electric companies generate a certain amount of electricity through renewable energy – that the House gutted.

But Senate lawmakers also lowered the bar.

Under current law, electric companies must generate 12.5 percent of electricity using renewable energy by 2027. The bill would lower that threshold to 8.5 percent by 2025.

Energy efficiency

Big changes could be coming for energy efficiency standards by 2021 if Senate changes are approved.

These goals incentivize companies being more efficient in how they make and deliver energy and how customers use it. Think discounts on more efficient light bulbs and appliance recycling.

Starting in 2021, companies wouldn’t get a cut of savings that customers achieve, called “shared savings.” Environmental groups worry that will take away the incentive to do those programs.

Electric companies would need to cash out energy efficiency credits they had banked from exceeding required savings.

Money for coal plants

The Senate lowered the amount that utilities could charge customers for two coal plants operated by Piketon-based Ohio Valley Electric Corporation. The plants are located in Gallipolis and Madison, Indiana.

Under the House plan, utilities could collect up to $2.50 per month through 2030. The Senate plan drops that to $1.50 a month and give PUCO more power to dole out less if warranted.