PJM: Ohio’s nuclear and coal subsidy bill likely to cost more than forecast

first_img FacebookTwitterLinkedInEmailPrint分享Energy News Network:A bill to subsidize FirstEnergy Solutions’ two Ohio nuclear plants could cost customers even more than the hundreds of millions of dollars in direct charges proposed to prop up those plus two older coal plants.A new analysis from grid operator PJM concludes that keeping FirstEnergy’s nuclear plants open could also cost ratepayers as much as $16 million a year in lost savings by discouraging cheaper gas generation from coming online.House Bill 6 passed in the Ohio House of Representatives by a vote of 53-43 on May 29. Under the current version, all retail consumers in the state would pay 50 cents per month for the first year and then $1 per month for the next six years to subsidize FirstEnergy Solutions’ Perry and Davis-Besse nuclear power plants. FirstEnergy Solutions and other FirstEnergy generation subsidiaries are currently in bankruptcy. The bill would also subsidize 1950s-era coal plants and gut Ohio’s clean energy standards.PJM’s analysis contradicts an earlier statement by FirstEnergy Solutions Vice President David Griffing, who claimed that closing the nuclear plants would cost Ohioans an average of $35 per year between 2022 and 2029. Ohio Consumers’ Counsel Bruce Weston responded by asking PJM for a fact check on the projected effects on wholesale and retail electric prices if the two Ohio nuclear plants close.Yet the PJM analysis may still underestimate costs to consumers. “While useful, the analysis looks only at the energy market, which is an important shortcoming,” said Dan Sawmiller, Ohio energy policy director at the Natural Resources Defense Council. PJM’s report said that it didn’t consider impacts on longer-term capacity markets because of time constraints.Ohio Public Utilities Commission Chair Sam Randazzo also testified Wednesday before the Ohio Senate committee. By his estimate, the annual out-of-pocket costs to ratepayers are slightly more than a third of a billion dollars. Before his appointment to the commission this year, Randazzo had long represented Industrial Energy Users-Ohio, which has consistently opposed the state’s clean energy standards.More: Costs of FirstEnergy nuclear bailout bill could exceed out-of-pocket subsidies PJM: Ohio’s nuclear and coal subsidy bill likely to cost more than forecastlast_img

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