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Thursday March 21, 2019 - Edition #63

FirstEnergy is pushing for a new law that would force all Ohio utility customers—not just those in its own service territory—to bail out the uneconomic nuclear plants operated by its subsidiary, FirstEnergy Solutions (FES). Although these plants are losing money, FirstEnergy is suggesting to legislators that in the long run they will be a great value for Ohio electricity consumers.
 
But FirstEnergy described the plants’ financial outlook much differently back in 2017. (SEC). Here’s what they told the Securities and Exchange Commission about the nuclear plants then:
 
“Long-term low prices in the wholesale energy and capacity markets continue to challenge the coal and nuclear baseload units….The continued weakness of these markets may further negatively and materially impact the future results of operations and financial condition of FirstEnergy and FES….”
 
FES filed for bankruptcy due to massive losses from its nuclear and coal plant business.
 
FirstEnergy must have a lot of explaining to do to Ohio legislators. A new independent report shows the plants aren’t necessary to keep the lights on – the region has more power plants than it actually needs.
 
Speaking of lights, we hope state leaders will see the light and refuse to saddle Ohio consumers with a bailout for FirstEnergy’s nuclear plants.

But can you walk the (enviro) walk?

FirstEnergy paints itself as a great steward of the environment. Here’s how the company describes its environmental commitment:
 
“We’re committed to protecting the environment….We’re proud of the leadership role our employees have taken in finding new and innovative ways to enhance our environmental performance.”
 
The company talks the talk, but sure doesn’t walk the walk. When given a choice to own up to its environmental responsibilities, FirstEnerqy ran in the opposite direction.
 
As part of its bankruptcy settlement (which would transfer FES and its power plants to creditors), FirstEnergy and its leaders sought to ram through provisions that would allow it to escape any future liability for cleanup costs at the coal and nuclear plants, including remediation of coal ash and decommissioning of reactors.
 
Believing that sunlight is the best disinfectant, EDF and its allies, as well as state and federal agencies, were quick to object. The agencies correctly pointed out that FirstEnergy (possibly including company leaders) may be liable for these cleanup costs separately and independently from FES, because FirstEnergy owned and operated the plants for many years before transferring the plants to FES.
 
We convinced the bankruptcy judge to reject FES’s request to approve the language of the releases and disclosure statements. FES will need to revise the language to clarify that FirstEnergy Corp. and its leaders will remain liable for environmental cleanup costs. The judge scheduled another hearing for April 2nd to consider the new language that FES will develop.

If you believe FirstEnergy really cares about the environment, I have some nice swampland in Florida I’d like to sell you….
Copyright © 2019 Environmental Defense Fund |Energy, All rights reserved.


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