Among its numerous flaws, House Bill 6 created a generous, ratepayer-funded subsidy for the Ohio Valley Electric Corporation (OVEC) and its two 1950s-era coal power plants – one in Ohio and one in Indiana.
As explained in this memo, authored by OMA’s energy engineering consultants John Seryak and Peter Worley of RunnerStone LLC, the OVEC coal plants have been selling electricity for less than it costs to generate for nearly a decade. Under HB 6, Ohioans will be forced to continue to subsidize these uneconomical plants through 2030 to the tune of an estimated $700 million. Because OVEC has a power agreement and debt through 2040, OVEC owners will likely seek more subsidies in 2030.
Meanwhile, OVEC estimates its energy output this year will be 39% less than in 2010, adding to the reasons why HB 6 needs to be repealed and replaced with market-oriented, competitive energy policy. 11/10/2020