Dive Brief:
- Ohio regulators have denied a price stabilization rider Duke Energy said was necessary to ensure a pair of aging coal facilities remain in operation and ensure the state's electricity supply remains stable.
- The order closely mirrors the Public Utilities Commission of Ohio's decision in February to reject a similar proposal by American Electric Power (AEP).
- Critics of the deal call the proposals "bailouts" for the coal industry and want a faster transition to renewable power.
Dive Insight:
Ohio regulators have now rejected price stabilization riders (PSR) in two cases: Both Duke and AEP had proposed buying all of the power produced by their portion of plants run by Ohio Valley Electric Corp. Midwest Energy News reports that both FirstEnergy and AEP have similar pending cases before the PUCO, though it appears increasingly likely they will face similar fates.
Regulators determined the arrangements were legal, allowing the companies to come back with revised proposals. But in their current form, the commission determined the deals were not in consumers' best interest.
"The commission is not persuaded, based on the evidence of record in these proceedings, that Duke's PSR proposal would provide customers with sufficient benefit from the rider's financial hedging mechanism or any other benefit that is commensurate with the rider's potential cost," according to the order.
A spokesman told Midwest Energy News that Duke is still examining the order and determining its next steps.
