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Economy and Business


FirstEnergy and AEP reject competition from new player Dynegy
The entry of Texas-based Dynegy into the Ohio energy market is changing considerations of proposed bailouts
by WKSU's ANDY CHOW


Reporter
Andy Chow
 
Keeping the coal-fired Sammis plant is part of the package of subsidies proposed by FirstEnergy, paid for by customers. AEP is working on a similar plan to pay for aging coal plants. Both plans could be scuttled by a new player in the Ohio energy market.
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In The Region:

Utilities FirstEnergy and AEP want state regulators to approve plans that allow them to hike their customers’ bills to ensure energy production and guarantee income for their struggling coal plants.

But as Statehouse correspondent Andy Chow reports, a new energy player wants to crash the party.

 

LISTEN: Ohio energy market in flux

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Dynegy just bought several coal and natural gas plants from Duke Energy. Now the independent energy producer says it can counter plans from AEP and FirstEnergy by offering the same amount of energy for $5 billion less.

Their proposal relies on cost-efficient coal plants, existing natural gas plants and, possibly, newly built natural gas plants. 

Exelon, another energy provider, has also offered a cheaper plan. Dynegy Vice President Dean Ellis says these companies are sending a clear message to regulators that other options are out there. 

“These offers are far superior in so many different ways beginning with the cost-savings that they would deliver to consumers over the long term,” says Ellis.

But AEP says Dynegy’s relying on “inflated assumptions” and that there’s no basis for their claims of cost savings.


Related WKSU Stories

Manufacturers oppose proposed coal plant bailouts
Tuesday, January 12, 2016

The reliability argument behind the proposed Power Purchase Agreement
Thursday, January 7, 2016

Ohio regulators want to hear why some groups support coal-plant bailouts
Monday, January 4, 2016

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