Mission: Ohio Coal Bailout by Any Means Necessary

Columbus – Last week, Republican Rep. Rick Carfagna introduced House Bill 239 and Republican Senators Peterson and Terhar introduced Senate Bill 155 which are designed to require Ohio’s electricity customers to pay higher electric bills for decades to keep two money-losing coal-burning plants operating. Those coal-burning power plants, Kyger Creek in Ohio and Clifty Creek in Indiana, were built in the 1950s, can’t compete in today’s energy market, and are jointly-owned by AEP, FirstEnergy, DP&L, and Duke.  These legislative proposals would guarantee income for the four giant utilities for the remaining years of these plants' operation, regardless of whether the power generated at the facilities could be sold at a profit.

This highly controversial piece of legislation brings back to the forefront a years-old fight between Ohio’s utilities and their customers as well as environmental advocates such as Sierra Club over whether dirty, outdated coal plants should be subsidized by Ohio’s electricity customers.  For years now, Ohio’s utilities have sought multiple forms of corporate bailouts for their misguided decisions to continue investing in dirty, coal-burning power plants at a time where customers are demanding cleaner sources of generation.  

Every year, Kyger Creek and Clifty Creek produce thousands of tons of coal ash, a dangerous byproduct of burning coal for electricity. Coal ash puts human health at risk from potential large-scale disasters and from gradual yet equally dangerous contamination as coal ash toxins seep into water sources. Kyger Creek, located in Cheshire, Ohio, has six coal ash ponds, three of which are unlined, as well as a landfill for coal ash. Kyger Creek releases 1,144,980 pounds of sulfuric acid each year, which is extremely toxic and corrosive to the human body, causing pain, burns, scarring, and death. The facility also releases 1,512,890 pounds of hydrochloric acid, which is severely toxic and corrosive and can cause burns, ulceration, scarring and irritation.

In response, Daniel Sawmiller of the Sierra Club, released the following statement:

“Ohio’s legislators should see this poorly crafted piece of legislation for exactly what it is; a bailout for old, dirty, and failing coal plants on the backs of Ohio’s working families. This bill would place long-term cost risks associated with electricity generation from coal with customers, instead of the utility companies. In 2011, the joint-owners of these facilities made a bad bet on coal by signing an agreement to operate the facilities through 2040.  Now, they are trying to force that bad deal onto their customers by making it a legal requirement that customers pay for it, regardless of price.  Ohio’s legislature should say No to this latest attempt to bailout old failing coal plants in Ohio.”