PUCO Signs Off Two Deals for FirstEnergy and AEP that Subsidize Aging Power Plants
On March 31, the Public Utilities Commission of Ohio (PUCO) signed the profit guarantee plans for FirstEnergy and AEP. It is a plan that has faced controversies and is written to subsidize operation of old coal-fired and nuclear power plants in the coming eight years.
The plans are complex and include provision for those utilities to renovate the electric grid along with commitments from those companies to spend towards efforts for renewable energy.
Andre Porter, the PUCO Chairman said the deals had been tailored to tackle some of the concerns which had attracted nationwide attention from various consumer as well as environmental and energy groups and also businesses.
According to him, the FirstEnergy plan has been designed on a system that will further stabilize the bills for customers in the early years of eight years of the plan. On the other hand, the AEP plan is also adjusted to reduce impact for the consumers.
The Alliance for Energy Choice that was not in favor of the deal expressed disappointment at the fact that the commissioners did not refuse both the plans straight away.
The regulators said, the planned changes are expected to save Ohio consumers an approximate amount of $470 million together over the period of agreement.