Incumbent utilities in Georgia, Ohio, and Illinois are trying to put their fingers in the pockets of ratepayers to cover everything from cost overruns on outdated generating assets to ransom payments for clean energy legislation.
In Georgia, ratepayers are on the hook for never-ending delays on the Vogtle nuclear powerplant. In Ohio, corruption continues to plague utility lackey lawmakers. And in Illinois, a utility-backed $1 billion bill will cost consumers high prices for a plan that won’t achieve the goals it needs to. These cases aren’t one-offs. In fact, they continue to demonstrate the need for a competitive energy market that drives down the consumer and spurs innovation in the marketplace.
GEORGIA
The $26 billion Georgia Power Co.’s nuclear expansion project of Plant Vogtle is even more behind schedule than previously thought. The latest announcement reports that the first of two reactors won’t open for more than a year from now, increasing the total cost of the project by $2 billion. Georgia ratepayers will be left to foot the bill for the monumentally poor management of the utility project. It showcases yet again that without competition, there is no motivation to innovate and build efficiently — and consumers pay the price.
OHIO
Progress has been made by Ohio lawmakers in their effort to expel former Ohio Speaker Larry Householder after last year’s federal indictment alleging Householder and others pushed for House Bill 6’s $1 billion bailout of nuclear plants in exchange for a $61 million donation from First Energy Corp.
Similarly, this week, the SEC subpoenaed documents from utility AEP Ohio related to a subsidy added to the same bill Householder was indicted for last year. The bill in question placed the cost of the subsidies for the aging coal plants on the backs of ratepayers. AEP initially opposed the nuclear plant bailout until they were able to convince lawmakers to add the coal plant subsidy to the legislation, too!
ILLINOIS
Illinois state leaders signaled that next week the legislature will take up a massive energy bill in a special session. Details of the bill have not been revealed to the public but reports indicate the legislation could cost taxpayers $1 billion in subsidies over five years to prop up two Exelon nuclear power plants as the price of modernizing the state’s energy rules.
This costly tactic underscores the incumbent utility’s clout with lawmakers in the Illinois Statehouse. Even if clean energy advocates in the Legislature pay the ransom, the legislation isn’t guaranteed to help meet climate goals and the transition to cleaner and more affordable energy alternatives.