Ohio legislature close to revoke nuclear power subsidy

Ohio’s Senate amended and unanimously passed a House bill that would repeal nuclear subsidies for Energy HarborEnergy Harbor Corp’s Davis- Besse and Perry reactors in the state.

The bill which the senator passed on Wednesday, House Bill 128 (HB128) would confirm what state courts have already done in halting the collection of the subsidies under House Bill 6(HB6).

” Ohio House could approve the slightly amended Senate version of HB128 this week and send it to Government Mike DeWine, who is expected to sign.” said Analysts at ClearView  Energy Partners.

The legislature,  in 2019 passed HB6 to keep the money-losing nuclear plants in service to preserve jobs, tax revenue, and because the reactors generate lots of energy without producing carbon dioxide emissions.

HB6 which pay Energy Harbor about $1 billion over six years, became tainted after it was revealed that it passed the legislature through alleged acts of bribery.

FirstEnergy Corp threatened to close the reactor unless the state provided financial support.

According to analysts at Height Capital Markets,” Energy Harbor has not opposed the legislative efforts to  end the nuclear subsidies because the company has said it has a favorable outlook of receiving some form of federal clean energy support.”

Those affected by the alleged bribery scandal so far include Larry Household, the former speaker of the Ohio House of Representatives, who was arrested by the U.S Federal Bureau of Investigation (FBI) in July 2020; Charles Jones, CEO of First Energy, who was fired by the company in October 2020; and Samuel Randazoo, who resigned as chairman of the Public Utilities Commission of Ohio in November 2020 after the FBI searched his home.