Testimony Shows Ohio Nukes Profitable Without Subsidies

Recent testimony from Judith Lagano, a senior vice president for independent power producer NRG Energy, reveals the lie behind House Bill 6 subsidies for Ohio’s two nuclear power plants owned by Energy Harbor (formerly FirstEnergy Solutions). Earlier this month, Lagano told Ohio senators the following:

“FirstEnergy told legislators during the HB 6 debate that without a subsidy, its affiliate’s nuclear generation would close because it was unprofitable. That affiliate, FirstEnergy Solutions, filed a Chapter 11 bankruptcy. At the end of that bankruptcy process, the new company, now known as Energy Harbor, has a stronger balance sheet, less debt, and is forecasting robust cash flow and profits. In fact, Energy Harbor has revealed that the company’s profits and cash flow are strong even without the HB 6 subsidies, as depicted in its May 10, 2020, 2020-2022 Financial Outlook.”

Lagano told lawmakers that Energy Harbor had since removed its financial presentations from its public website, but that the company expects to make approximately $515 million in profit this year, $585 million next year, and $645 million in 2022, “even without the approximately $150 million in annual HB 6 nuclear subsidies. … Every dollar of the (roughly) $150 million/year it collects from here on simply fills Energy Harbor’s coffers at the expense of Ohio’s customers.”

More evidence that it’s past time to repeal and reform HB 6. 11/24/2020