Public outcry rages over FirstEnergy's rate-hike proposal

Associated Press

COLUMBUS

Ohio utility regulators are nearing decisions on two proposed energy deals that have sparked fierce debate among consumer, business and environmental advocates.

The power purchase agreements submitted separately in December by Akron-based FirstEnergy and Columbus-based AEP have been the subject of television ad wars, email-writing campaigns, apps and web sites and mountains of written testimony.

The proposals ask regulators to permit rate increases over the next eight years to subsidize certain aging coal-fired and nuclear plants, modernize the power grid, reduce carbon emissions and guarantee profits. The Ohio Consumers’ Counsel estimates the settlements would cost consumers $5.9 billion combined over the duration — $3.9 billion for FirstEnergy and $2 billion for AEP.

Critics call the rate plans bailouts that flout Ohio’s decision to deregulate its electricity market and force power companies to compete on an open market. The companies and their allies argue the proposals will protect jobs and aid in the expensive transition to cleaner energy.

The Public Utilities Commission of Ohio could decide the cases by later this month.

Todd Snitchler, a former PUCO chairman who’s fighting the proposals, said the pushback — joined by such organizations as AARP, the Ohio Manufacturers’ Association and the Ohio Environmental Council — appears to be unprecedented.

“The public outcry over these proposed plans dwarfs any previous level of engagement by the public at the PUCO,” said Snitchler, who represents the Alliance for Energy Choice that organized delivery of 100,000 emails to utility commissioners, state lawmakers and Gov. John Kasich. “The deluge of messages is unprecedented.”

That’s in part because the proposals are coming at a time of sweeping change in the U.S. energy market: Natural gas prices have been at a sustained low, as a result of warmer than normal temperatures, record inventory and growth in production. The federal government is seeking to crackdown on greenhouse gases and set carbon emission targets for coal-fired plants. Growth in the renewable energy market is surging.