Ohio Energy Companies Fight To Keep HB 6 Ratepayer Subsidies For Coal Plants

Leaders from Ohio's largest energy companies made their argument to state lawmakers as to why electric company ratepayers should have to continue to send hundreds of millions of dollars to coal plants.

Ratepayers are charged up to $1.50 monthly to help two coal plants owned by the Ohio Valley Electric Corporation (OVEC), one of which is located in Indiana. 

An Ohio state Senate bill would repeal the coal subsidies guaranteed by House Bill 6, the 2019 energy law  in the center of the largest alleged public corruption scandal in Ohio history. 

But Amy Spiller with Duke Energy, a part owner of the coal plants, said it's not a subsidy but a cost-recovery mechanism. 

"In many respects is like an insurance policy to mitigate or offset the risk of unknown, unpredictable, unexpected costs," Spiller told the Senate Energy and Public Utilities Committee.

Spiller said the two coal plants operate under unique circumstances since they are owned by a group of energy companies which also includes, AEP and AES Ohio, formerly Dayton Power and Light. FirstEnergy is currently trying to detach itself from from the corporation.

Critics of OVEC say the plants don't compete well in the market and they shouldn't be propped up by ratepayers.

Ohio lawmakers have already repealed other portions of HB 6, which federal investigators alledge was passed as part of a $60 million bribery scheme devised by a dark money group and then-Speaker of the Ohio House, Larry Householder.

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