Don't be fooled. Know the facts about FirstEnergy's Bailout Plan.
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Whew. It’s been a busy few weeks for Ohio’s electricity market.

The most important update: A judge agreed the new FirstEnergy settlement raised different issues and ordered new hearings to begin on January 14. This sets up a final commission decision that will likely come in late March or early April. So enjoy the holidays and get ready for more action in the New Year.

In the meantime, check out our blog post on why FirstEnergy’s bailout isn’t just bad policy – it’s illegal.

You can always visit EDF’s FirstEnergy website for our newsletter archive and links to the latest news about FirstEnergy’s bailout.

 
 

Other Power Producers to FirstEnergy: Play Fair or We’ll Sue

You know things are bad when your former friends threaten to sue you.

When it comes to decisions in the power sector, FirstEnergy and other independent power producers of the Electric Power Supply Association usually find themselves on the same side of an argument. But following FirstEnergy’s secret backroom settlement with the Public Utilities Commission of Ohio (PUCO) staff, even former allies are coming out to blast the deal. Dynegy and Talen Energy – who understand the unique challenges of meeting energy demand in Ohio – are upping the ante, promising to contest the deal in court if the commission approves it.

Dynegy’s CEO called out the anti-competitive nature of the agreement, saying, “Dynegy will pursue all available avenues, including litigation, to prohibit the power purchase agreement from being enacted so as not to compromise the competitive market design, and we strongly encourage the PUCO commissioners to oppose and vote down this adverse anti-market public policy.”

The CEO went further, noting how FirstEnergy is performing well in the market, saying it “is already set to receive significant revenue.” That might be a good point to bring up in court.

 
 

New Conservative Kids on the Block “Concerned” About FirstEnergy

Many conservatives hold former President Ronald Reagan up as a hero of American conservatism, so it’s no surprise a recent editorial from the Ohio Conservative Energy Forum (OCEF) started with a quote of his: “What is a conservative, after all, but one who conserves.”

The new group was expressing its disappointment with Ohio’s recent energy policy stances, including being the first state in the country to roll back its energy efficiency and renewables standards (as a reminder, Ohio’s leaders and the governor-appointed PUCO commissioners are conservatives). OCEF’s executive director advocated for a total reboot, summing it up quite nicely with, “From a policy standpoint, there are myriad reasons for conservatives to support clean and renewable energy.”

That was written before the backroom deal between FirstEnergy and the PUCO staff. Perhaps no one at the PUCO read the op-ed, but clearly the message didn’t hit home. In response to the sellout, the group said the move runs counter to efforts to reduce the tax burden on Ohio families. Plus, OCEF pointed out how it’s a raw deal for Ohio’s small businesses, which create jobs and spur the economy.

We couldn’t agree more. Conservatives should have a problem with the anti-competitive bailout, as we highlight in our letter to the Columbus Dispatch.

 

Quote of the Week: You Had Me at Headline

This week’s quote is actually not a quote, but a headline about FirstEnergy’s secret deal with the PUCO staff. It articulates just the right combination of FirstEnergy’s audacity and the befuddlement felt by those of us forced to watch the bad deal go down. From William Pentland, energy and environmental contributor to Forbes Magazine:

“FirstEnergy Finagles Mother Of All Boondoggles”

Pentland explains how the subsidy will leave Ohioans with dirtier air and no discernible benefit, calling it “the deal of a century.” The whole article is worth a read.

And while we’re celebrating headlines, let’s enjoy this one from the Plain Dealer editorial board:

“PUCO must oppose FirstEnergy settlement for Davis-Besse, coal plant bailout” 

There’s only one way to interpret ‘must.’ We hope the PUCO commissioners are listening.