Ohio’s Electric Consumers Should Not Subsidize the Status Quo

The following statement is attributed to Rachael Belz, Director, Ohio Consumers Power Alliance:

The mission of the Ohio Consumers Power Alliance is to educate and mobilize our state’s energy consumers around opportunities to diversify Ohio’s energy portfolio and keep rates low. Today, lawmakers provided us with our first test.

The legislation is a creative approach used to blatantly disguise a consumer-funded bailout of two old, uneconomical nuclear plants as a comprehensive energy policy. Every ratepayer in Ohio would be charged a monthly fee to subsidize more of the same. The legislation effectively repeals the state’s renewable energy and energy efficiency standards, tying the hands of new technology companies that have been creating jobs without saddling consumers with added charges.

Our members remain staunchly opposed to rewarding FirstEnergy’s bad business decisions by allowing them to dig deep into the pockets of Ohio ratepayers to cover the bill with no end in sight. We also remain deeply disappointed in our leaders for continuing to reject energy innovation and job growth while keeping Ohio firmly planted in the dark ages of the status quo.

COLUMBUS — "Ohio consumers would pay $300 million through new fees in their electric bills to create a new pot of state money — more than half of which could go to bailout two nuclear power plants along Lake Erie.

At a Friday press conference, Ohio House Speaker Larry Householder, R-Glenford, detailed legislation he is pushing to eliminate surcharges electricity customers currently pay for energy efficiency, peak demand and renewable energy, which he says aren’t accomplishing goals.

...FirstEnergy Solutions and its allies have been looking for a bailout to keep open the plants, which generate about 18.3 million megawatts of zero carbon emission power each year.

Householder’s energy bill, which will be assigned to a committee next week, was immediately met with criticism from the Ohio Environmental Council Action Fund, Sierra Club, National Wildlife Federation and Ohio Consumers Power Alliance as a consumer-funded bailout of aging nuclear power plants that does little to promote renewable energy from wind and solar.

'The entire intent of this bill is to bailout the two nuclear power plants,' said Tracy Sabetta, a consultant to Ohio Consumers Power Alliance. Under the legislation language, no existing solar farm in Ohio would qualify for grants under the new program, she said."

— Laura A. Bischoff, Dayton Daily News

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TOLEDO — "It’s back to the drawing board for FirstEnergy Corp. and its subsidiary, FirstEnergy Solutions, now that a federal bankruptcy judge has struck down an important part of the utility company’s proposed restructuring plan.

The plan attempted to free the parent company of liability for mounting losses for the division of the firm that controls FirstEnergy’s unprofitable coal-fired and nuclear power plants in Ohio and Pennsylvania, including the Davis-Besse nuclear plant in Ottawa County.

FirstEnergy Solutions, which has been assigned to take on the debt and operations of those plants, responded by saying it expects to submit a revised disclosure statement for its reorganization plan. The filing will be with the U.S. Bankruptcy Court in Akron overseeing its Chapter 11 restructuring."

— Tom Henry, Toledo Blade

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The draft legislation would create a new surcharge, with proceeds distributed to power plants that “make a significant contribution toward minimizing emissions.”

COLUMBUS -- "Legislation to subsidize two FirstEnergy Solutions nuclear power plants in Ohio is about to surface in the Ohio House.

Republican majority leaders have been circulating a proposal that would add up to $300 million annually to electric bills across the state, creating a state 'clean air program' with grants administered by political appointees.

About $180 million would be earmarked for the FirstEnergy Solutions nuclear power plants, say analysts who have looked at the legislation. The remaining $120 million could be used to prop up other companies — though it appears those companies would not be owners of wind and solar farms.

The draft legislation, obtained by the Energy News Network, would add a $2.50 per month surcharge to every residential customer’s bill, a $20 per month surcharge to every commercial customer’s bill and a $250 monthly charge to every industrial customer’s bill."

-- John Funk, Energy News Network

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COLUMBUS — “If you’re a supporter of clean and renewable energy, you know our state legislators often work against new forms of energy. And, today’s news of the Ohio Senate’s confirmation of Sam Randazzo as the chairman of the Public Utilities Commission of Ohio (PUCO) was yet another example.

With this one appointment, Governor DeWine and the entire legislature have put Ohio further behind, turned their backs on billions of dollars in economic development, thousands of jobs and cleaner air for our children.

They appointed Sam Randazzo knowing he has fought against renewable energy as a lawyer and former lobbyist with Industrial Energy Users-Ohio. He also successfully worked with Rep. Bill Seitz to end future wind development in Ohio in 2014 and has worked on legislation to roll-back Ohio’s modest renewable energy standards.

Read our report opposing Randazzo’s nomination.

Randazzo’s application of a conflict-of-interest standard also bears scrutiny. In 2016 he objected to the nomination of Howard Petricoff, a lawyer with ties to the wind industry, siting conflict-of-interest.  As PUCO Chairman, he now will preside over both groups he represented and vehemently opposed.  We will join others in demanding he recuse himself from all matters involving his former clients and opponents.  However, we have serious doubt that he will do the ethical thing and recuse himself from the cases and projects he so adamantly fought against.

What this means for us, Ohioans who share a cleaner, greener vision of our energy future, is more work, more vigilance and more power-building. As the systems and agencies designed to protect the public’s interest become usurped by corporate interests bent on propping up coal and nuclear power, we must let them know we’re watching and fight back. Governor DeWine and Mr. Randazzo must hear from the pro-clean energy majority of their constituents, regularly and often. Our fight for Ohio’s renewable energy future depends on it.”

— Rachael Belz, executive director, Ohio Consumers Power Alliance

COLUMBUS — “Gov. Mike DeWine has picked a Columbus attorney with a long history in the state’s energy business to lead the the Public Utilities Commission of Ohio.

DeWine announced on Monday that Samuel Randazzo will be chairman of the five-member commission, replacing Asim Haque as chairman, who announced Monday he was stepping down March 1 to serve in a role with Philadelphia-based PJM Interconnection.

…Renewable energy advocates are critical of the choice, expressing concern that Randazzo would oppose clean-energy investments such as solar and wind farms.

‘Ohio deserves better than Gov. DeWine’s choice of Sam Randazzo as PUCO chair,’ Rachael Belz, executive director of Ohio Citizen Action said in an email. ‘Ohio Citizen Action members will fight even harder to make sure Gov. DeWine and Mr. Randazzo hear from all of their constituents, a majority of whom favor clean energy over outdated, expensive coal and fossil fuels.’

Dave Anderson, spokesman for the Energy and Policy Institute, said the nomination ‘is further evidence of the undue influence of fossil fuel and utility interests over energy policy in Ohio.'”

— Tristan Navera, Columbus Business First

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COLUMBUS — “Samuel Randazzo, an attorney and lobbyist known for playing a leading role in political attacks on renewable energy and energy efficiency in Ohio, is the among the candidates vying for a seat on the Public Utilities Commission of Ohio (PUCO).
Randazzo is one of nine candidates who will be interviewed by the PUCO Nominating Council on Thursday. The 12-member council will then select four candidates to recommend to Governor Mike DeWine for further consideration at the same meeting.

…As a lobbyist for the Industrial Energy Users of Ohio (IEU-Ohio), Randazzo helped to draft controversial legislation aimed at rolling back Ohio’s renewable energy and energy efficiency standards.

He has represented individual IEU-Ohio member companies like Marathon Petroleum Company before the PUCO as they seek approval for so-called ‘reasonable arrangements’ with utilities. These deals allow some industrial ratepayers to pay lower rates for energy, at the expense of residential consumers.

Randazzo has also fought the development of wind power in Ohio as a lobbyist and attorney for Greenwich Neighbors United, an anti-wind group that refers to climate change as a ‘hoax’ on its website.”

— Dave Anderson, Energy and Policy Institute

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