The News Herald (Willoughby, OH)
Commissioners approve resolution
FirstEnergy urged to continue operating Perry Power Plant
A week after airing disagreements over a resolution that urged FirstEnergy to continue operating the Perry Nuclear Power Plant, Lake County commissioners agreed to an updated version Feb. 7.
The Akron-based company could sell or close its two Ohio nuclear plants as it looks to exit the competitive energy generation business. The plants are struggling to compete with the cheaper cost of natural gas. The Perry plant, located in North Perry Village, employs more than 700 people.
Moody’s Investors Services downgraded the bond rating of FirstEnergy Solutions — the subsidiary that owns the plants — Jan. 23. Moody’s stated it is highly likely the subsidiary will default on a $100 million bond payment in early April that will result in bondholders losing a significant percentage of their investments.
Commissioner Daniel P. Troy introduced the original resolution at the board’s Feb. 1 meeting, but it never went to vote. The proposed resolution urged FirstEnergy to continue operating the Perry plant “through the investigation and implementation of all possible options.
At that meeting, Commissioner Jerry Cirino said the resolution was put together with zero input from him. He argued there were components missing from that version of the resolution.
“Like we should be admonishing PJM, whose decision it is ultimately probably going to be,” Cirino said. “FERC deferred to PJM to make a recommendation.”
In January, the Federal Energy Regulatory Commission voted against a proposal from U.S. Energy Secretary Rick Perry to provide assistance for coal and nuclear energy generators. In its decision, the FERC board pushed the issue down to regional energy markets, which in Ohio’s case would be PJM Interconnection. FERC directed the operators of the regional wholesale power markets to “provide information as to whether FERC and the markets need to take additional action on resilience of the bulk power system.”
Troy said the resolution is addressed to the entity that’s going to make the decision: FirstEnergy.
“This is a chance for this board to go on record and say we are united, this dispels perceptions or accusations out there that there are commissioners out there who could really care less whether the Perry Nuclear Power Plant stays open or closes,” Troy said. “That’s what I’m trying to do here. It says, ‘Explore all options and options undefined.’ If that includes PJM, it includes PJM.”
The updated resolution addresses PJM, Gov. John Kasich and FERC, as well FirstEnergy. The new language reads:
“(The Lake County Commissioners) hereby urges the FirstEnergy Corporation to continue the operation of the Perry Nuclear Power Plant through the investigation and implementation of all possible options. That process should include joint discussions and consultation among FirstEnergy Corporation, PJM, the Federal Energy Regulatory Commission and (Governor John Kasich), for the purpose of developing a plan that considers all options in order to sustain the continued operation of the Perry Nuclear Power Plant. These options should include, but not be limited to, a blend of regulatory relief, corporate contribution, reasonable and affordable rate adjustments, spread over as great a base as possible so as to minimize the impact on residential and business consumers and whatever other options undefined at this time that will ensure the continued operation of this nuclear power generating plant.”
Cirino said he supported the change in the language and the resolution in its entirety.
“I’ll just add I’m very pleased those changes were reasonable, incorporated and everybody worked well on this and brought us to this point,” Commissioner John Hamercheck said. “We’re working together with one voice, that’s commendable.”