May 23, 2018 Read More →

Lawsuit Argues FirstEnergy Is Shorting Nuclear Cleanup Fund

The Plain Dealer:

FirstEnergy’s power plant subsidiaries have not put enough money into federally mandated decommissioning trust funds to pay for the shutdown and cleanup of each of its four nuclear reactors, charges an environmental group with a reputation as a legally effective environmental advocate.

The Chicago-based Environmental Law and Policy Center, or ELPC, made that charge in a petition filed in March with the Nuclear Regulatory Commission. The ELPC’s intervention in the Peabody Energy bankruptcy led to the court requiring that company to purchase $1.2 billion in surety bonds to guarantee clean up.

The ELPC wants the NRC to hold parent company FirstEnergy Corp. responsible for bankrolling what it argues could well be a multi-billion reactor cleanup shortfall, which taxpayers or customers could be forced to pay.

The ELPC petitioned the NRC just days before the FirstEnergy Solutions Corp. filed for bankruptcy protection on March 31 and the FirstEnergy Nuclear Operating Co. told the NRC it would close its nuclear plants within two years. Now the ELPC, joined by the New York-based Environmental Defense Fund, the Ohio Environmental Council and Ohio Citizen Action, have intervened in the bankruptcy case under way in the U.S. Bankruptcy Court for the Northern District of Ohio.

The groups want Judge Alan Koshik to “lift” the normal “stay” on legal action that companies seeking bankruptcy protection are normally afforded. “[We] are not seeking a money judgment, but, instead, are seeking leave to continue pursuing the legal and administrative remedies afforded them under federal and state laws and their constitutional right to petition their government,” the environmental groups argued in their 96-page petition filed with the bankruptcy court. In other words, they want the judge to allow their action at the NRC to continue unimpeded by a decision in the bankruptcy case preventing it.

More: FirstEnergy Must Guarantee Nuclear Clean Up, Environmental Groups Tell Feds

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