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583Another Utility To Increase Rates

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  • TennesseeCornStoves
    Aug 21, 2010
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      Ratepayers will be charged extra because the Utility proposes to purchase power off the grid rather than generate the power at plants the utility ownes. Check the archives to learn how TVA used this same strategy to justify increased power rates.

      FirstEnergy to idle several coal-fired power plants

      13 August 2010-- FirstEnergy Corp. said that its will temporarily idle several of its coal-fired power units in Ohio in response to the slow economy, lower demand for electricity and uncertainty of proposed federal environmental regulations.

      The changes will affect the following power plants: Bay Shore units 2-4, Eastlake Plant units 1-4, the Lake Shore Plant, and the Ashtabula Plant, all located in Ohio. The plants have a total generating capacity of 1,620 MW. The move is designed to reduce operating costs and provide more predictability while maintaining availability for future operations, as needed.

      From September 2010 through August 2011, the affected units will operate with a minimum three-day notice and in response to customer demand, such as during the summer and winter. Beginning in September 2011, the Bay Shore and Eastlake units will be available as peaking units for approximately 18 months, while the Ashtabula and Lake Shore plants will be temporarily idled.

      The company said it could write off up to $287 million in value related to the assets. The changes are subject to review by the Midwest Independent Transmission System Operator (MISO), PJM Interconnection and the independent market monitors to ensure that there is no negative impact on system reliability.