96
And the Orwellian Creativity Award goes to…
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FirstEnergy’s lobbyists have re-defined a bailout bill for outdated, uneconomic power plants as a “clean air program.”
Friday April 12, 2019 - Edition #64
You almost have to admire FirstEnergy’s lobbyists. They’ve re-defined a bailout bill for outdated, uneconomic power plants as a “clean air program.” George Orwell would appreciate the sheer audacity.
But make no mistake, legislation introduced today sends massive customer-funded subsidies to FirstEnergy Solutions’ money-losing power plants. The bill even finagles it so all of Ohio’s uneconomic coal-fired power plants qualify for clean air credits.
As John Finnigan writes in a blog post, the new bailout bill also is a huge blow to Ohio’s clean-energy economy. The proposal kills state provisions to advance efficiency and renewable energy, which are cost-effective means of lowering pollution from the power sector.
The winners are out-of-state hedge fund managers that took over the bankrupt FirstEnergy Solutions.
The losers, well, are Ohioans.
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Hiding behind bankruptcy
FirstEnergy’s lawyers also have been busy. Having made
bad business decisions – such as buying up coal plants when the price of natural gas was falling – the company has been trying to obtain a bailout through bankruptcy.
A judge had tentatively agreed to reduce the utility’s debts, but federal regulators
recently charged the company’s lawyers with favoring certain creditors and concocting a “scheme” that is an “abuse of the bankruptcy system.”
The bankruptcy judge
recently ruled that First Energy could not use its subsidiary’s bankruptcy filing to evade its liabilities associated with cleaning up poisonous coal-ash pits and decommissioning radioactive reactors.
In other words, FirstEnergy is on the hook for cleaning up this mess.
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Copyright © 2019 Environmental Defense Fund |Energy, All rights reserved.
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