Bailout of 2 #Ohio nuclear plants stalls in Statehouse RSS Feed

Bailout of 2 Ohio nuclear plants stalls in Statehouse

CLEVELAND — A proposed bailout for Ohio’s two nuclear power plants that would lead to rate increases for FirstEnergy customers appears to be stalled in the Legislature.

One legislative committee considering the idea suspended testimony last month amid protests against the plan while another committee held its fourth hearing this week without taking a vote.

Much of the written testimony submitted to lawmakers opposes a plan that could lead to $300 million a year in new charges for FirstEnergy customers, The Plain Dealer (http://bit.ly/2sboxIU) reports.

FirstEnergy’s average residential customer would pay about $5 more per month, while businesses and factories would see much larger increases if the Legislature approves the bailout.

The Akron-based utility says subsidies are needed to save the Davis-Besse and Perry plants, which sit along Lake Erie and produce 14 percent of the state’s electricity. The company has said the plants might be sold even if subsidies are approved.

The plants are vital tax generators for rural towns near them, providing millions of dollars for school districts and local governments. The Benton-Carroll-Salem school district east of Toledo could lose $8 million a year if Davis-Besse closes.

Like many nuclear plants in the U.S., Davis-Besse and Perry are aging, are costly to operate and maintain, and face stiff competition from utilities producing power with cheap natural gas.

Some nuclear plants have already closed. Power companies have said they will shut down other plants if they don’t get help. New York and Illinois recently approved multibillion-dollar subsidies to stop unprofitable nuclear plants from closing.

Read full article at WHIO