Dive Brief:
- Andre Porter, the new chairman of the Public Utilities Commission of Ohio (PUCO), has warned the state's utilities about comments concerning deregulation.
- Porter, in an interview with Columbus Business First, said the state's utilities should "focus on what's important" and "stop trying to scare Ohioans."
- Porter says the state's utilities will be fine if they avoid scare tactics.
Dive Insight:
The statements from the newly named PUCO chief stem from recent comments from FirstEnergy CEO Chuck Jones, who said last month that the utility's future is at stake if Ohio regulators and lawmakers cannot find a way to financially support the state's nuclear and coal facilities. Jones told the Cleveland Plain Dealer that if the company was offered a path to re-regulation, "I would do it in a hearbeat. ... I think it makes sense. I am trying to save a company."
Porter says Ohio should "stay the course" on regulation and continue to allow customers to buy power from multiple suppliers. "We’re going to continue to have reliable power. We’re going to continue to have cost-effective services. So stop trying to scare Ohioans," Porter told Columbus Business First.
FirstEnergy advocated for deregulating markets less than a decade ago, but that was when natural gas prices were higher and the resource was less competitive with coal and nuclear. With gas prices now around 25% of what they were seven years ago, FirstEnergy's power plants have become less economical. The remarks come as a highly controversial proposal from FirstEnergy's regulated utilities that would guarantee revenue for the company's unregulated power plants is set to come before the commission next month.
