The Institute for Energy Economics and Financial Analysis (IEEFA) published a memorandum by Energy Analyst Cathy Kunkel on FirstEnergy's re-regulation strategy for the Pleasants Power Station. "Put bluntly, the company is trying simply to shift market risk to ratepayers," Kunkel writes in the "IEEFA Report: A Cynical Re-Regulation Strategy in West Virginia" post on IEEFA.org
IEEFA conducts research and analyses on financial and economic issues related to energy and the environment. Click here to download a copy of “Re-Regulating Coal Plants in West Virginia: A Boon to FirstEnergy, a Burden to Ratepayers” by Kunkel.
"In seeking to get the West Virginia Public Service Commission to allow it to sell all or a portion of its Pleasants Power Station, Ohio-based FirstEnergy Corp. is following a strategy of re-regulation that stands to benefit shareholders at ratepayer expense," Kunkel writes.
"The coal-fired 1,300-megawatt Pleasants plant is currently owned by a FirstEnergy deregulated subsidiary, Allegheny Energy Supply. Under what the company is proposing it would become largely the property of FirstEnergy subsidiary Mon Power, which is regulated and thereby guaranteed revenues that will cover its costs plus profit."
The Institute for Energy Economics and Financial Analysis (IEEFA) conducts research and analyses on financial and economic issues related to energy and the environment. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy and to reduce dependence on coal and other non-renewable energy resources.