Ohio Republicans balked at a nuclear bailout, so the industry elected new Republicans — And walked away with $1.1 billion

"Several dark-money groups spent millions to replace key Republican state legislators in the spring of 2018, followed by a furious lobbying campaign to make sure those new lawmakers elected a new House speaker — one who was amenable to the subsidy. The nuclear industry in Ohio has been on the brink of failure for several years, but previous legislatures had objected to a bailout, reading the writing on the wall: Nuclear power is neither a cost-effective solution for power nor an effective response to climate change, despite hopes for its success.

In April 2018, two nuclear plants, both owned by the electric utility FirstEnergy, filed for bankruptcy and have been threatening to cease operations if not bailed out. They were under increasing pressure to compete with cheaper alternatives, ranging from natural gas to wind and solar. The bankruptcy filingsgive a glimpse into the company’s political spending: more than $30 million from 2018-2019 on lobbying and campaigns in Ohio and Pennsylvania (where the company also sought a bailout, so far unsuccessfully).

The dark-money effort deployed a variety of vehicles that went by names like the Conservative Leadership Alliance and the Ohio Clean Energy Jobs Alliance. Murray Energy, a coal company, also gave heavily to current state House Speaker Larry Householder and his allied candidates, and the bailout from Ohio also includes subsidies to prop up failing coal plants in the state.

The payoff is extraordinary in degree — something like $30 million for campaigns in Ohio and Pennsylvania to win $1.1 billion in government subsidy. But it is similar in kind to other nuclear projects across the country. According to the Environmental Working Group, a nonprofit devoted to research and advocacy, five cash-strapped states across the country have foisted more than $15 billion in subsidies on failing nuclear power plants since 2016, the latest sign that nuclear is unable to stand in a competitive energy market against lower-cost renewables."

— Ryan Grim, Akela Lacy, The Intercept 

read more

Be the first to comment

Please check your e-mail for a link to activate your account.