House bill aims to subsidize state’s nuclear power plants

After a previous attempt stalled in the Ohio legislature, a new bill to help subsidize the state’s two nuclear power plants has been introduced in the state House.

First Energy has been lobbying for a Zero Emission Nuclear Resource Program or “ZEN” for its nuclear power plants in North Perry and Oak Harbor, which are struggling to compete with cheaper natural gas. The Akron based company has said it is looking to sell or shutter its nuclear plants as it seeks to exit the competitive power generation business.

The newly introduced House Bill 381 will likely be subject to much the same criticisms its predecessors faced. Opponents have argued ZENs force consumers to prop up aging, uneconomic plants. Under the new proposal, costs to customers have been lessened.

House Bill 381 sets the cost for residential customers at $2.50 and the lesser of a 5 percent increase or $3,500 a month for nonresidential (business and industrial) customers.

Under the previous proposal, both residential and nonresidential customers would have seen a 5 percent monthly increase on their bills. The length of the proposed ZEN program is shortened from 16 years to 12 years under the new bill.

The bill is sponsored by Rep. Anthony DeVitis, RGreen. Among the co-sponsors is Rep. Ron Young, RLeroy Township, whose district includes the Perry Nuclear Power Plant.

“I felt it was time to at least lend my support to the effort,” Young said.

Young said he is “definitely in favor” of maintaining nuclear power efforts in Ohio, “for many reasons.”

The Perry Nuclear Power Plant employs more than 700 people and is a major tax revenue source for Perry Schools, among other area entities.

The bill could go through changes as it goes through the committee process and Young said being a co-sponsor will allow him to be more of a part of the process going forward.

FirstEnergy spokeswoman Jennifer Young said the company is “pleased” with the proposal.

“Passage of H.B. 381 would increase the likelihood of keeping the plants operational throughout the life of the program,” she said. “We look forward to hearings in the House of Representatives on the new legislation and are hopeful legislators will vote on the bill before the end of the year.”

As Ohio legislators debate whether to subsidize the state’s plants, nuclear and coal plants could potentially get some federal aid.

Secretary of Energy Rick Perry on Sept. 29 sent a letter to the Federal Energy Regulatory Commission asking it to adopt rules raising payments to power plants that keep a 90-day supply of fuel onsite.

“America’s greatness depends on a reliable, resilient electric grid powered by an ‘all of the above’ mix of generation sources,” Perry said in the letter.

Perry asked the FERC to adopt rules within 60 days. The FERC is an independent agency that regulates wholesale power markets and is not required to follow the recommendation.

The FERC on Oct. 2 set deadlines for initial industry comments for Oct. 23 and reply comments for Nov. 7.