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Two Utilities Shift Costs to Consumers

Non-competitive power plant relief for two Midwest utilities

Ohio regulators have approved a shift of costs tied to unprofitable power plants to customers of American Electric Power and FirstEnergy, according to the Wall Street Journal.

 “The electricity industry as a whole is in a period of transition,” Ohio Public Utilities Commission chairman Andre Porter said. “Ohioans should not be alarmed by the transition.”

The two utilities will sell power from seven coal-fired and one nuclear generating unit on the wholesale market and recover from their customers the losses generated by the sales, which will not cover the cost of generation, the Journal reported.

The utilities said that their customers stand to gain via rebates some of any future profits from higher wholesale electricity prices.

Rival power generators, PJM Interconnection, consumer and environmental groups oppose the arrangement approved by the Ohio regulators, the Journal reported.


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