Nuclear Bailout, Part 2

Last week a group of 16 lawmakers introduced a new version of legislation to bailout the unprofitable nuclear power plants presently owned by an affiliate of FirstEnergy. The proposed bailout is marketed under the term ZEN for Zero Emission Nuclear credits.

House Bill 381 alters the state’s energy policy by establishing a preference for nuclear generation over other fuel sources, such as natural gas or coal. The bill seeks to take advantage of a national question raised by the U.S. Department of Energy about fuel-diversity.

According to an analysis prepared for members of the OMA Energy Group, the new bill would cost a small manufacturer an above-market charge of $60,000, while a large manufacturer would pay $504,000, over the course of the proposed ZEN program. The structure of the subsidies is particularly punishing to small and medium manufacturers. 10/19/2017