They oppose proposed rate-subsidy or power-purchase agreements struck between the Public Utilities Commission of Ohio and First Energy in Akron or American Electric Power (AEP) in Columbus.
The profit-guarantee deals — which have yet to be approved by the five-member PUCO commission — are meant to support the operation of more expensive, older coal-fired or nuclear generation plants.
But the alliance — led by former PUCO chairman Todd Snitchler — says the deals are bad for consumers. They go against the spirit of free-market competition regimens passed by Ohio lawmakers in 1999, he said.
“Given the work I did when I was chairman, between 2011 to 2014, we pushed everyone to get to the finish line so that we could actually achieve what was originally passed in ‘99,” Snitchler said.
“We had nearly gotten to the finish line, and now these (deals) are what I would deem a direct retreat from competitive markets and really an attempt to re-regulate without changing the law.”
Snitchler is a principal for Vorys Advisors, a subsidiary of a Columbus law firm, and says he handles communication duties. David Hobson, a former congressman from Springfield, founded the firm.
Opponents argue that the deal with First Energy would cost customers $3.9 billion over eight years. The AEP agreement would cover four coal-fired generating plants.
Terri Flora, AEP spokeswoman, said her company’s agreement supports a “balanced transition” from coal to natural gas while maintaining grid reliability. It also has the backing of a “diverse” group of interests, she said, including the Sierra Club.
A spokesman for First Energy, Doug Colafella, said the proposed deal will help safeguard consumers against rate hikes. First Energy’s deal also concerns plants that are not “even remotely” near the end of the service lives, he added.
“Obviously, these out-of-state energy suppliers oppose our plan,” he said.
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