Ohio nuclear reactors expect tax-payer subsidy, they’re making a profit anyway !

Nuclear plants at center of Ohio subsidy fight operating above wholesale prices, S and P Global,Darren Sweeney, Gaurang Dholakia  5 Oct 20, 

As the owner of two Ohio nuclear plants is pressed to open its books on the profitability of the units, the timing of subsidies at the center of a federal criminal investigation may be a larger issue.

An S&P Global Market Intelligence analysis shows Energy Harbor Corp.’s 908-MW Davis-Besse and 1,268-MW Perry nuclear plants, both in northern Ohio, have operating costs higher than wholesale electricity prices. A mid-2019 analysis showed the plants with operating costs running below wholesale electricity prices.

The most recent analysis shows wholesale prices in the PJM Interconnection rising through the end of 2020 and into 2021, which is when Ohio’s clean air credit for nuclear plants kicks in.

House Bill 6, which establishes a $9/MWh credit for clean air resources, provides $150 million in annual financial support for the Davis-Besse and Perry nuclear units beginning Jan. 1, 2021, through Dec. 31, 2027…………

Ohio Attorney General Dave Yost has reportedly told state lawmakers to bring Energy Harbor and FirstEnergy Corp. officials before legislative committees to disclose whether the nuclear plants need the subsidies.

In addition, Yost on Sept. 23 filed a civil lawsuit to halt the collection of ratepayer-backed subsidies for the state’s nuclear plants.

The lawsuit and legislative hearings come after federal prosecutors in July filed bribery charges against former Ohio House Speaker Larry Householder and four associates. They have been indicted and accused of using “more than $59 million” through a “slush fund” to steer H.B. 6 through the Ohio Legislature. An affidavit filed by an FBI special agent implies that FirstEnergy and affiliated entities, though not mentioned by name, wired funds through a 501(c)(4) nonprofit group called Generation Now to support H.B. 6 and combat a statewide referendum to repeal the law.

Former FirstEnergy subsidiary FirstEnergy Solutions Corp. emerged from bankruptcy in late February as Energy Harbor. https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/nuclear-plants-at-center-of-ohio-subsidy-fight-operating-above-wholesale-prices-60569193

October 6, 2020 - Posted by Christina Macpherson | business and costs, politics, USA