FirstEnergy

IEEFA Research

IEEFA Report: ‘Natural Security’ Argument for Saving 2 Power Plants Is a Red Herring Meant to Distract From an Ohio Valley Electric Bailout

Keeping Kyger Creek and Clifty Creek on Life Support Would Cost Ratepayers $1.4 Billion; Market Conditions Will Continue to Undermine Viability of Aging Coal-Fired Plants; Public Resources Are Better Spent on Investing in Transition; Neither Generator Is Needed for Grid Stability

June 20, 2017  (IEEFA.org) – The Institute for Energy Economics and Financial Analysis (IEEFA) today published a research brief questioning a bill in the Ohio legislature that would bail out two failing coal-fired power plants owned by the Ohio Valley Electric Corporation (OVEC) and keep the plants alive at huge expense to ratepayers. The plants […]

IEEFA Report: A Cynical Re-Regulation Strategy in West Virginia

IEEFA Report: A Cynical Re-Regulation Strategy in West Virginia

FirstEnergy’s Machinations Around the Pleasants Power Station Are Designed to Shift Risk to Ratepayers

In seeking to get the West Virginia Public Service Commission to allow it to sell all or a portion of its Pleasants Power Station, Ohio-based FirstEnergy Corp. is following a strategy of re-regulation that stands to benefit shareholders at ratepayer expense. The coal-fired 1,300-megawatt Pleasants plant is currently owned by a FirstEnergy deregulated subsidiary, Allegheny […]

September 8, 2016 Read More →
IEEFA Ohio: Damn Tradition, Bailouts Are Where It’s At

IEEFA Ohio: Damn Tradition, Bailouts Are Where It’s At

Update: FirstEnergy Piles Insult Onto Billions of Dollars in Injury by Threatening to Move Its Headquarters From Akron

Call me old-fashioned, but I’ve always thought investor-owned electric utilities were set up to provide power to consumers who paid for what they got.    In states where electricity is deregulated, utility companies compete for customers—just like any other business does. And in states where utilities are regulated, public-utility commissions determine how rates are set […]

August 24, 2016 Read More →
FirstEnergy’s Scheme to Protect Aging Power Plants in Ohio Will Cost Ratepayers $4 Billion

FirstEnergy’s Scheme to Protect Aging Power Plants in Ohio Will Cost Ratepayers $4 Billion

A Utility Company’s Subsidy Plan Ignores the New Energy Economy

We’ve published a report today that outlines in fresh detail how the proposed bailout of the Ohio utility giant FirstEnergy is a raw deal for ratepayers. Our report, “A $4 Billion Bailout in the Buckeye State,” concludes that the FirstEnergy scheme, if approved by the Pubic Utility Commission of Ohio, would cost ratepayers across northern […]

February 9, 2016 Read More →
In Ohio, AEP and FirstEnergy Adopt an Audacious Strategy That Could Cost Ratepayers Dearly

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 […]

October 21, 2015 Read More →
Report: FirstEnergy Seeks a Subsidized Turnaround

Report: FirstEnergy Seeks a Subsidized Turnaround

FirstEnergy: A Major Utility Seeks a Subsidized Turnaround (pdf) By Tom Sanzillo, Director of Finance and Cathy Kunkel, Fellow Institute for Energy Economics and Financial Analysis

October 6, 2014 Read More →
Report: Mountain State Maneuver: AEP and FirstEnergy try to stick ratepayers with risky coal plants

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)      

July 30, 2013 Read More →

More News and Commentary

IEEFA Update: Failed Coal-Plant Deal in West Virginia Is in Ratepayers’ Best Interest

Negligence on the Part of FirstEnergy and the State to Encourage Responsible Transition

As FirstEnergy prepares to either sell the Pleasants Power Station in West Virginia or deactivate it, the question now becomes whether the company and the state will come up with a good plan to help the local community through this transition. FirstEnergy’s decision on Pleasants comes after the Federal Energy Regulatory Commission rejected its proposal […]

February 22, 2018 Read More →

U.S. Coal: ‘Fewer and Fewer Customers’

Bloomberg News: The big problem for Cloud Peak and fellow miners is there are fewer and fewer customers. Between the end of 2011 and 2017, America’s coal-fired power plants lost 15 percent of their generating capacity, from 306 gigawatts to 261 gigawatts. Another 12.5 gigawatts of plants are scheduled to close this year, making 2018 […]

February 20, 2018 Read More →

Trump Administration Said to Be Planning a Regulatory End Run to Bail Out Failing Coal Plants

Bloomberg News: After failing to win a bailout for cash-strapped coal plants, some Trump administration officials are considering emergency orders that could keep at least some coal generators online, people familiar with the discussions said. The approach would require Rick Perry to use his authority as U.S. energy secretary to spur emergency compensation for coal […]

February 9, 2018 Read More →
IEEFA Update: A Case That Suggests Regulators Are Tiring of Campaigns to Bail Out Failing Power Plants

IEEFA Update: A Case That Suggests Regulators Are Tiring of Campaigns to Bail Out Failing Power Plants

FirstEnergy Throws in the Towel on Its Latest Play in West Virginia

It’s to the benefit of ratepayers that FirstEnergy this week announced that it will drop its scheme to transfer the Pleasants Power Station from deregulated subsidiary Allegheny Energy Supply to West Virginia regulated subsidiaries Mon Power and Potomac Edison. The move would have shielded the coal-fired Pleasants plant from market competition, forcing West Virginia ratepayers […]

February 8, 2018 Read More →

FirstEnergy, Major U.S. Utility, Will Close Ohio Nuclear Plant and Is Considering Shutdown of Coal-Fired Generation Stations as Well

Toledo Blade: The utility’s Davis-Besse nuclear plant is headed for a premature closing. The outlook for FirstEnergy’s coal-fired power plants and its other nuclear plants — its twin-reactor Beaver Valley nuclear plant west of Pittsburgh and its Perry nuclear plant east of Cleveland — is just as bleak, said James Pearson, FirstEnergy’s chief financial officer. […]

January 26, 2018 Read More →
IEEFA Update: In Ruling Against Another Bailout Scheme by FirstEnergy, FERC Strikes a Blow Worth Hundreds of Millions for Ratepayers

IEEFA Update: In Ruling Against Another Bailout Scheme by FirstEnergy, FERC Strikes a Blow Worth Hundreds of Millions for Ratepayers

More Bad News for an Out-of-Step Electricity Company Struggling to Stave Off Bankruptcy

By rejecting a bailout maneuver last week in West Virginia by Ohio-based FirstEnergy, the Federal Energy Regulatory Commission last week ended up protecting Mon Power and Potomac Edison customers from incurring hundreds of millions of dollars of unnecessary costs over the next 15 years. FirstEnergy’s scheme would have transferred the Pleasants Power Station, which is […]

January 16, 2018 Read More →

FirstEnergy’s Pleasants Plant Deal would Hurt Competitiveness in West Virginia

West Virginia Gazette Mail: As Mon Power and Potomac Edison await approval to buy a Pleasants County power plant, an analysis backed by opposition parties says manufacturers, schools and hospitals in West Virginia will have to pay about $230 million more on their utility bills over 15 years if the deal goes through. Technical consultant […]

January 2, 2018 Read More →

Op-Ed: FirstEnergy Plan for West Virginia Plant Would Have Ratepayers Foot the Bill

Charleston Gazette-Mail: There’s an old saying that goes, “Fool me once, shame on you. Fool me twice, shame on me.” The West Virginia Public Service Commission will soon make a decision that reveals whether it has learned that lesson. If not, hardworking West Virginians are in danger of footing the bill. At issue is FirstEnergy’s […]

November 20, 2017 Read More →

U.S. Coal Bailout Plant Would Benefit a Select Few: Murray Energy, FirstEnergy, NRG

Politico: “Customers get less than nothing while a few companies and their investors get a whole lot of something,” Nora Mead Brownell, a Republican former electricity regulator, said of Perry’s plan, noting the high cost estimates. “Money that gets spent there doesn’t get invested in doing what you really need to do, which is upgrading […]

November 7, 2017 Read More →

West Virginia Weighs FirstEnergy’s Bid to Pass Risk to Ratepayers

Charleston Gazette: The state Public Service Commission began to hear testimony Tuesday in a hotly contested and controversial case over FirstEnergy’s effort to transfer one of its coal-fired power plants to a West Virginia subsidiary, a move that consumer advocates and environmental groups say is aimed at unloading an uncompetitive generation station onto ratepayers in […]

September 27, 2017 Read More →