By John Stang
FirstEnergy Solutions (FES) on Wednesday came closer to securing passage of a sought-after bailout bill for two struggling nuclear power plants in Ohio.
But potential full approval of the state legislation is not expected until Aug. 1, which would be two weeks after the company’s Wednesday deadline. The Ohio legislature adjourned for two weeks on Wednesday evening and won’t return to Columbus until the start of next month. House leaders told Ohio newspapers that four representatives favoring the bailout were not available to vote on the package, and those votes were needed for the modified bill to pass.
FirstEnergy Solutions did not respond to multiple requests for comment regarding its willingness to wait further on legislative action.
The Ohio Senate voted 19-12 in favor of a modified version of House Bill 6, and sent it back to the lower chamber. The legislation would increase electricity rates for residential, business, and industrial customers across the state, with $150 million of the money raised annually directed to FirstEnergy Solutions through 2026 to sustain the Davis-Besse and Perry nuclear plants. Otherwise, the company says both would close by May 2021.
The Senate bill includes new language that would delay utilities collecting the new rates until Jan. 1, 2021.
FirstEnergy Solutions, which is reorganizing under Chapter 11 bankruptcy, originally told the Ohio legislature it needed the bill passed by July 1 in order to stop the shutdown of its Ohio nuclear plants. When July 1 arrived, FES bumped the deadline to July 17. The Akron, Ohio, company has said it needs to know whether it should refuel the single-reactor Davis-Besse Nuclear Power Station in Oak Harbor, rather than simply advancing toward closure in May 2020. The fuel for Davis-Besse would cost $52 million, according to FES.
FirstEnergy Solutions also plans to retire the two reactors at its Beaver Valley Power Station in Pennsylvania in May and October 2021. Lawmakers there have not agreed on any legislative means for supporting the facility.
The Ohio legislation has proven controversial for a number of reasons, including for increasing ratepayers’ monthly bills —regardless of whether they are served by FES —to help bail out the politically influential corporation.
FirstEnergy Solutions and several corporate siblings filed for federal bankruptcy protection on March 31, 2018 — days after the company announced the four reactors in Ohio and Pennsylvania would be shut down because they cannot economically compete with power generated by natural gas.
FirstEnergy Solutions has tried to get financial assistance from federal and state governments to keep its nuclear and coal power plants afloat. Pleas to the Trump administration have not resulted in any concrete proposals being made public.
FirstEnergy Solutions and the other subsidiaries are trying to separate themselves from parent FirstEnergy Corp. which is being kept out of the bankruptcy proceedings.
