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FirstEnergy Corp. is seeking Ohio regulators' approval of an electric security plan that would initially raise rates but that the Akron-based utility contends could save the Davis-Besse nuclear power plant near Toledo and the W.H. Sammis coal plant on the Ohio River from possible closure and benefit consumers in the long run.
(Plain Dealer file)
The potential closure of Ohio's most reliable power plants could lead to the loss of thousands of high-paying jobs, a sharp decline in local tax revenues, and the risk of higher electric prices for years to come. Hardly an outcome Ohio can afford.
So it's no coincidence that Ohio's three largest utilities, including FirstEnergy Corp., all have similar proposals before the Public Utilities Commission of Ohio that will help keep electric rates in check and preserve vital power plants in our state.
I have long been an advocate for reliable and affordable energy resources. They are paramount to our region's economic and social development and vital to our national security.
One of the hallmarks of my public career was the formation of the Northeast Ohio Public Energy Council. I was a founding member. At that time, it was the largest aggregation group in Ohio. Through that experience, I have developed a keen understanding of consumer demand and providers' challenges in meeting that demand.
That is why I support FirstEnergy's proposed electric security plan, Powering Ohio's Progress.
I believe all parties can agree that reliable and affordable electric service is critical to Ohio's economic security and quality of life.
No one can contest that our summer and winter weather events have exposed potential vulnerabilities on the electrical grid serving Ohio.
It should be apparent that these problems are likely to increase in severity and magnitude as a number of power plants across the region are prematurely retired.
That will place our energy future at greater risk and burden consumers with ever-increasing costs.
Most of us may agree on the problems and recognize their potential impact. What is at issue today is what should be done to remedy the problems and who should pay for the remedies.
We can't afford to wait on the sidelines for the market to react or the federal government to intervene. The time is now for Ohio to take action to secure our energy future.
Ohio needs meaningful reforms to assure a reliable, affordable electricity supply. FirstEnergy's plan offers a common-sense approach that will support Ohio's economic resurgence and keep electricity affordable and reliably available. The plan outlines how the company's Ohio utilities will provide electric service to consumers for a three-year period beginning June 1, 2016. Powering Ohio's Progress also includes a 15-year economic stability program that supports the state's economic future.
Powering Ohio's Progress would deliver significant benefits and savings opportunities to our state, including:
* Supporting service reliability by helping to keep vital base-load power plants available in and near Ohio to serve Ohio consumers.
* Helping safeguard consumers from retail price volatility if energy and capacity prices rise in future years.
* Saving customers approximately $2 billion over 15 years, although the typical residential customer using 750 kilowatt hours of electricity per month could expect to see a modest increase in the initial years.
* Preserving more than $52 million in tax revenues for Ohio communities.
* Retaining approximately 3,000 family-sustaining Ohio jobs.
My public record reflects my disagreement with FirstEnergy companies on many issues. I have opposed the utility's proposals on various matters before the PUCO.
In this case, however, I support FirstEnergy's plan because we must be able to provide a stable, affordable source of energy for the numerous businesses located here in Brook Park and throughout the state. Our economic well-being translates into a healthy tax base that ensures we can offer top-notch schools and responsive police and fire services to our residents. These factors contribute directly to the quality of life we can offer our residents and the citizens of Ohio.
Thomas J. Coyne Jr. is the mayor of Brook Park.