FIRSTENERGY, AEP Ohio regulators near decisions on rate deals

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 websites 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.