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Ohio utilities' attempt to guarantee income for coal and nuclear are part of a trend
Coal and nuclear, nuclear and coal: two sides of the same centralized generation coin
Report: ‘Around market’ moves by Ohio utilities are part of larger trend
Efforts by Ohio utilities to guarantee income for affiliated coal and nuclear operations are part of a broader trend, according to a new report by legal analysts.
Starting in 2014, FirstEnergy, American Electric Power (AEP) and other companies sought to impose added fees on all customers of their Ohio utilities, in order to guarantee sales for certain power plants owned by affiliates of those companies. After federal regulators said they would require strict scrutiny of any power purchase agreements under those plans, FirstEnergy and AEP changed their proposals.
Both companies also announced an interest in seeking re-regulation of electricity generation in Ohio. If successful, that effort would reverse a 1999 law that gave customers the right to choose their own electricity generation supplier. That law also forbade utilities from favoring their own generation affiliates.
The Ohio companies’ actions are among the more aggressive “around market” efforts in a nationwide trend noted by report authors Raymond Gifford and Matthew Larson of Wilkinson Barker Knauer in Denver, Colorado. Those efforts coincide with the exit of multiple coal and nuclear plants from the market.
“This has gone from somewhere simmering on the back burner to a very broad trend,” ...
Efforts by Ohio utilities to guarantee income for affiliated coal and nuclear operations are part of a broader trend, according to a new report by legal analysts.
Starting in 2014, FirstEnergy, American Electric Power (AEP) and other companies sought to impose added fees on all customers of their Ohio utilities, in order to guarantee sales for certain power plants owned by affiliates of those companies. After federal regulators said they would require strict scrutiny of any power purchase agreements under those plans, FirstEnergy and AEP changed their proposals.
Both companies also announced an interest in seeking re-regulation of electricity generation in Ohio. If successful, that effort would reverse a 1999 law that gave customers the right to choose their own electricity generation supplier. That law also forbade utilities from favoring their own generation affiliates.
The Ohio companies’ actions are among the more aggressive “around market” efforts in a nationwide trend noted by report authors Raymond Gifford and Matthew Larson of Wilkinson Barker Knauer in Denver, Colorado. Those efforts coincide with the exit of multiple coal and nuclear plants from the market.
“This has gone from somewhere simmering on the back burner to a very broad trend,” ...
http://midwestenergynews.com/2016/09/14/report-around-market-moves-by-ohio-utilities-are-part-of-larger-trend/
