Dive Brief:
- Ohio regulators have scheduled a Dec. 17 hearing to consider American Electric Power's plan to guarantee income from the Kyger Creek Plant, a coal-burning power station in southeastern Ohio, The Columbus Dispatch reports.
- The utility says customers would pay about $2 more on immediate bills, but in the longer-term will save money while keeping the grid running reliably.
- AEP has apparently been employing a wide-ranging letter-writing campaign to bolster support for its proposals to continue operating coal plants in Ohio, stressing that the coal-fired generation benefits business, brings in state revenue and is environmentally compliant.
Dive Insight:
It's a contentious battle between environmental proponents who want to see coal-fired generation shuttered, and utilities in the state who believe the generation is essential to affordably powering Ohio businesses.
AEP is not alone in proposing these types of arrangements, and Ohio Citizen Action said on its website that utilities are looking to extend the life of coal facilities long after they have outlived their purpose. "These plants are well beyond their prime, and they cannot compete economically or environmentally in the free market."
Heading into a hearing on the matter, AEP has been enlisting municipalities and business groups to pressure regulators by sending similarly-worded letters in support of coal facilities near them.
"The loss of this facility that is efficient and environmentally compliant and provides reliable and affordable electricity is unacceptable," the Jefferson County Board of County Commissioners said in one letter. "AEP Ohio's Power Purchase Agreement proposal is not a bailout as others would suggest. It is a plan that protects Ohio's economy by keeping hundreds of Ohioans employed and millions of dollars of annual economic benefit in place while helping shield AEP Ohio's customers from market volatility."
The Jefferson County board had written in support of Cardinal Unit 1 in Jefferson County, which they said employed 350 people in 2014 and provided an economic benefit of $1.8 million in property taxes.
