"Dynegy, Talen: We’ll Sue" to stop FirstEnergy bailout

As reported by Ted Caddell in RTO Insider's article "Merchant Generators Lead Opposition to FirstEnergy-Ohio Settlement," when it comes to "picking winners and losers," Beyond Nuclear has some diverse allies in opposing a risky 20-year license extension at the problem-plagued Davis-Besse atomic reactor, when it comes compliments of an outrageous, multi-billion dollar ratepayer bailout:

Talen joined Dynegy in promising to contest the deal in court if it is approved by the commission.

“As you are aware [PPL, one of Talen’s predecessors] led successful legal challenges in the federal courts against generation subsidy initiatives in New Jersey and Maryland,” Talen spokesman Todd Martin said Thursday. Before PPL’s generation assets were spun off to form Talen, the company won court rulings voiding PPAs obtained by Competitive Power Ventures for two merchant plants. (See CPV Md. Plant Goes Forward Despite FERC Ruling.)

“We believe states with competitive electricity markets must let those markets operate without interference or subsidies, and should not in effect be picking winners and losers,” Martin said.

P3 President Glen Thomas said PUCO staff’s “about face” represents “corporate welfare at its worst.”

“Forcing customers to buy overpriced electricity from uncompetitive plants to deliver windfall profits to FirstEnergy is a holiday offering that only the Grinch could support,” said Trey Addison of AARP Ohio.

“This bailout would leave Ohio locked into outdated and costly coal and nuclear plants, when we should instead be working to transition to a cleaner and more competitive energy system,” said Shannon Fisk, managing attorney with Earthjustice. Fisk was involved in settlement negotiations on behalf of the Sierra Club but withdrew in protest just before Thanksgiving.

Also weighing in was anti-nuclear group Beyond Nuclear, which blasted any deal that would result in the continued operations of FirstEnergy’s Davis-Besse nuclear plant. “The ratepayers of Ohio would be gouged additional billions of dollars on their electricity bills to prop up the uncompetitive Davis-Besse atomic reactor, effectively being forced to fund 20 more years of radioactive Russian roulette at the problem-plagued atomic reactor,” Beyond Nuclear spokesman Kevin Kamps.

As revealed on a radio interview hosted by Harvey Wasserman of Solartopia fame, Shannon Fisk of Earthjustice indicated that Sierra Club will continue to challenge the PUCO staff-FirstEnergy sweetheart deal, as by urging the PUCO Commissioners to not approve it. As with Dynegy and Talen, further legal action is also under consideration.