February 11, 2017

Davis-Besse Ohio nuclear plant may be closed in cost-cutting move

The endangered FirstEnergy plants in Ohio sell their energy at market prices that have been pushed down by a glut of cheap energy from natural gas and other sources, and those low prices aren't high enough to continue to justify operating those power plants, Jones said. FirstEnergy and other power companies have asked Ohio to set energy prices at a level that would make the plants more profitable for the companies. But price controls seem unlikely, he said.
http://www.thenews-messenger.com/story/news/local/2016/12/29/davis-besse-plant-may-closed-cost-cutting-move/95953290/

FirstEnergy continues to analyze how we can thoughtfully yet expeditiously move away from competitive markets over the next 12 to 18 months in Ohio, Pennsylvania, West Virginia and Virginia. We first announced this effort during our quarterly earnings call on November 4, 2016.

As part of the process, we are exploring a variety of strategic alternatives for plants owned by FirstEnergy subsidiaries operating in the competitive marketplace, including Davis-Besse. These alternatives include converting generation to a regulated or regulated-like construct, seeking solutions for nuclear units that recognize their environmental benefits {sic}, exploring the sale of additional generation assets, or moving forward with additional deactivations.

- Jennifer Young, First Energy

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The Public Utilities Commission of Ohio had given to First Energy a rate arrangement to keep this sad plant online by raising our rates as protection if "natural gas prices rose in the future". It is still non competitive.