HOUSTON--(BUSINESS WIRE)--The Public Utilities Commission of Ohio (PUCO) staff has decided to put the shareholders of FirstEnergy ahead of Ohio residents and businesses by coming to an eight-year agreement with the Company on a power purchase agreement (PPA). The PPA is a subsidy that only benefits FirstEnergy, while increasing power costs for the citizens of Ohio and their businesses, negatively impacting economic development in the state, and distorting the power market for FirstEnergy’s benefit.
Recent market awards indicate that FirstEnergy is already set to receive significant revenue for capacity at all of their Ohio plants for the next three years. According to FirstEnergy’s own data from their recent investor presentation at the Edison Electric Institute’s Financial Conference, FirstEnergy’s fleet has been awarded more than $2.3 billion in revenues over the next three planning years from the PJM Capacity Auction with all of their generating plants clearing the most recent capacity auctions, which is significantly more than the amount expected at the time of FirstEnergy’s original subsidy request. As part of the award, FirstEnergy’s plants are now obligated to run through May 31, 2019 without the PPAs, meaning there are no risks of near-term retirements at these facilities.
“The fault of FirstEnergy’s inability to compete in Ohio lies with FirstEnergy and it should not be dependent on the citizens and businesses of Ohio to provide a bail-out,” said Robert C. Flexon, President and CEO, Dynegy Inc. “Dynegy will pursue all available avenues, including litigation, to prohibit the power purchase agreement from being enacted so as not to compromise the competitive market design, and we strongly encourage the PUCO commissioners to oppose and vote down this adverse anti-market public policy.”
About Dynegy
We are committed to leadership in the electricity sector. With nearly 26,000 megawatts of power generation capacity and two retail electricity companies, Dynegy is capable of supplying 21 million homes with safe, reliable and economic energy. Homefield Energy and Dynegy Energy Services are retail electricity providers serving businesses and residents in Illinois, Ohio and Pennsylvania.
