IEEFA Research

In Ohio, AEP and FirstEnergy Adopt an Audacious Strategy That Could Cost Ratepayers Dearly

A Model First Established in West Virginia Is Being Pushed Now in the Buckeye State

We’ve posted a research note today that explains how reregulation schemes in Ohio by FirstEnergy and AEP bear a striking resemblance to one approved in West Virginia that resulted in a recent push to raise electricity rates by 12.5 percent. The gist of our memo, “West Virginia Bailout Emboldens FirstEnergy and AEP in Ohio,” is […]

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Report: Mountain State Maneuver: AEP and FirstEnergy try to stick ratepayers with risky coal plants

Mountain State Maneuver: AEP and FirstEnergy try to stick ratepayers with risky coal plants (pdf)      

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More News and Commentary

Ohio Energy Decisions ‘at a Boiling Point’

By Andy Chow for WOSU: Ohio’s largest energy companies are trying to figure out what they’re going to do with their coal power plants as they navigate through a vital time in the utilities industry. For the final installment of his three-part series, Statehouse correspondent Andy Chow explores the different paths those utilities can take […]

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FirstEnergy Throws a Hail Mary Pass in Its Campaign to Keep Aging Power Plants Alive

Scrambling for an End Run Around a Federal Road Block

FirstEnergy plugs away in zombie-like fashion at its undying effort to make ratepayers pick up the tab on aging electricity plants whose time has passed. Despite having been delivered a major setback last week by the Federal Energy Regulator Commission, FirstEnergy is scrambling now for an end run around FERC, even as AEP—similarly hobbled by […]

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Blocked on Its Ohio Bailout, FirstEnergy Tries a Regulatory End Run

John Funk for the Cleveland Plain Dealer: FirstEnergy now wants Ohio regulators to forget about the “power purchase agreements” they approved to save the company’s old power plants — but at the same time allow the company to keep the monthly customer surcharges that the PPAs were designed to produce. In a move that appears […]

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With Bailouts Under Federal Scrutiny, Ohio Utilities ‘Look to Legislature’

Ohio utilities are likely to urge an end to the state’s current competitive market for generation and take other actions in the wake of federal regulators’ decision this week to halt wholesale electric deals for affiliates’ less competitive plants. On Wednesday, the Federal Energy Regulatory Commission announced it would require commission scrutiny before American Electric […]

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FERC Intercedes in Proposed Bailout of Ohio Utilities

Dan Gearino for the Columbus Dispatch: Federal regulators dealt a blow to Ohio utility profit guarantees on Wednesday, saying the plans cannot go into effect until after a review of whether federal rules are being violated. The Federal Energy Regulatory Commission asserted its authority in a pair of orders, finding that the plans are not […]

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Institutional Investors Are Walking Away From Ohio Utility Companies That Insist on Coal

Hundreds of Millions of Dollars in Divestment From One Fund Alone

Utilities in Ohio and West Virginia clinging stubbornly to coal-fired power plants for electricity generation are finding the strategy backfiring in a way they might not have anticipated. Some of the world’s biggest investors are saying no thank you to enterprises so deeply—and dangerously—attached to coal. They include Norway’s Government Pension Fund Global, or GPFG, […]

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Ohio Bailout Fall-out: AEP Refuses to Let Dynegy Bid on its Coal-Fired Power Plants

By Tom Knox in Columbus Business First: American Electric Power Company Inc. wants to sell the Ohio power plants not included in its recently won income guarantee, but it won’t sell them to the power producers who opposed them, according to the CEO of one of those rival companies. Dynegy Inc. officials have said the company could […]

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Challenges on Several Fronts to Ohio Utility Bailouts

Kathiann M. Kowalski for Midwest Energy News: Despite unanimous approval by Ohio regulators last week, opponents of income guarantees for two utilities’ power plants still have multiple avenues to challenge the plans. The deals, involving certain coal plants and a nuclear plant owned by FirstEnergy and American Electric Power (AEP),  are expected to trigger requests […]

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Data Bite: The Shrinking U.S. Coal-Fired Electricity Map; Here’s a Snapshot From Ohio

A Decline to 59 Percent of Power Generation in 2015 from 82 Percent in 2010

Where better to get a picture of the coal industry’s rapidly declining share of the electric generation pie in the U.S. than Ohio, a battleground state for energy issues?   Coal historically has made up the lion’s share of electricity generation in Ohio, and the coal industry has wielded the political clout to match. Even […]

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Ruling Is a Giveaway to FirstEnergy and AEP, and a Betrayal of Ratepayers

Keeping Aging Coal-Fired Power Plants on Life Support

Yesterday’s ruling by the Public Utilities Commission of Ohio to allow for ratepayer subsidies of aging coal-fired power plants operated by First Energy and AEP proves that these plants aren’t competitive.  Indeed, the ruling serves as a reminder that the only way the power plants can survive is through massive ratepayer bailouts. Yet the case […]

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