OH State Legislators Want Permanent Taxpayer Subsidies For Two Aging Coal-Fired Power Plants
As coal-fired power plants continue to shutter across the country, politicians at the local and federal level are trying increasingly desperate measures to keep the once-dominant fuel afloat.
In Ohio, legislators have proposed a bill that would permanently subsidize two coal-fired power plants, owned jointly by American Electric Power and other major electricity utilities in the state. The subsidies would guarantee income for the power plants, even when the cost of electricity was less than the cost of operating the plants.
Money from the subsidies would come directly from consumers, who would be charged higher rates to pay the plants’ guaranteed income. If the plants became profitable, the customers would receive a credit back for the amount that they paid.
The move has prompted criticism from environmental groups, which accuse politicians of forcing consumers to bear the costs of outdated technology. “There is no need for these plants to stick around — and this would essentially charge customers significantly more,” Mark Kresowik, associate regional campaign director for Sierra Club’s Beyond Coal Campaign, told ThinkProgress. “Coal is uneconomic in the markets right now.”
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https://thinkprogress.org/coal-subsidies-studies-politicians-977b2381aa3a
