Return to Blog

Ohio electric deregulation on the chopping block?

Utilities in Ohio are working on legislation that would cut back on electricity deregulation in the state in order to help fund power plants that are struggling to stay open with the low-price environment for electricity.  The utilities are looking for subsidies similar to ones in other states, but opponents say that the subsidies would be “anti-competitive”.

Davis-Besse nuclear power plant

The big power plants that FirstEnergy and Columbus-based American Electric Power have operated for decades just cannot make electricity as cheaply — or as profitably — as the new gas turbines, and at times, wind farms.

The companies have been looking for a way to escape the perils of market prices that come with deregulation or at the very least craft “surgical” amendments to state laws that since 2000 have been gradually moving the industry into market-based pricing.

In other words, they want to “re-structure” the state’s utility laws. And you can bet that their opponents — independent power producers which own coal plants or are building gas turbine plants –along with consumer groups are gearing up for a fight.

This past week Nicholas Akins, CEO of AEP, gave a glimpse of what the utilities have been talking about privately and efforts to resolve their differences before they formally involve lawmakers.

“We’ve got to make sure that an industry restructuring package is transparent enough and people will understand it well enough to accommodate some of these varied interests,” he told financial analysts during the company’s public teleconference discussing 2016 sales and profits.

“There are already drafts of legislation that are circulating around and we just need to make sure all the parties are comfortable with that,”he added in response to further questioning. “It is a work in progress, with the new legislature as well here in Ohio.”

Read the rest at Cleveland.com

Disclaimer: Although the information contained herein is from sources believed to be reliable, TFS Energy Solutions, LLC and/or any of its members, affiliates, and subsidiaries (collectively “TFS”) makes no warranty or representation that such information is correct and is not responsible for errors, omissions or misstatements of any kind. All information is provided “AS IS” and on an “AS AVAILABLE” basis and TFS disclaims all express and implied warranties related to such information and does not guarantee the accuracy, timeliness, completeness, performance or fitness for a particular purpose of any of the information. The information contained herein, including any pricing, is for informational purposes only, can be changed at any time, should be independently evaluated, and is not a binding offer to provide electricity, natural gas and related services. The parties agree that TFS’s sole function with respect to any transaction is the introduction of the parties and that each party is responsible for evaluating the merits of the transaction and credit worthiness of the other. TFS assumes no responsibility for the performance of any transaction or the financial condition of any party. TFS accepts no liability for any direct, indirect or other consequential loss arising out of any use of the information contained herein or any inaccuracy, error or omission in any of its content. This document is the property of, and is proprietary to, TFS Energy Solutions, LLC and/or any of its members, affiliates, and subsidiaries (collectively “TFS”) and is identified as “Confidential.” Those parties to whom it is distributed shall exercise the same degree of custody and care afforded their own such information. TFS makes no claims concerning the validity of the information provided herein and will not be held liable for any use of this information. The information provided herein may be displayed and printed for your internal use only and may not reproduced, retransmitted, distributed, disseminated, sold, published, broadcast or circulated to anyone without the express written consent of TFS.