When FirstEnergy first took its subsidy plea to the Public Utility Commission of Ohio, it appeared confident the bailout would be approved. Soon after, a lot of people (like us) started making noise about how the deal was bad for customers, competition, and the environment. For the most part, FirstEnergy remained silent, maintaining a façade of unflappability.

But recent actions have the utility looking pretty, well, flapped. For example, in response to TV ads that highlight the ridiculousness of the bailout request, FirstEnergy has come out with its own rival ads. And in a particularly “unusual” move, the company took to Twitter to hurl insults at Dynegy, a power producer that has offered a more affordable, alternative energy plan. You know what they say about the utility, er lady, who doth protest too much.

Also, ICYMI, the Institute for Energy Economics and Financial Analysis came out with a report on FirstEnergy’s bailout that confirms both the enormous cost ($4 billion) and ultimate end-goal (ensuring future profits for executives and shareholders).

You can always visit EDF’s FirstEnergy website for our newsletter archive and links to the latest news about FirstEnergy’s bailout.

The Critical Floodgates Have Opened

The FirstEnergy bailout’s got enemies, gotta lotta enemies – and the list keeps growing. It already included consumer advocacy groups, the manufacturers association, major power producers, and every environmental organization in the state. Now ArcelorMittal, the world's largest steelmaker, and its largest chemical company and appliance maker oppose the deals. In addition to Whirlpool, BASF, and others, that makes eight Ohio manufacturers – representing tens of thousands of jobs and even more revenue – who want FirstEnergy to slow its roll. (You can check out all the companies’ objections in the Plain Dealer’s handy roundup.)

But it doesn’t stop there. We previously mentioned how Dynegy, NRG Energy, and other generators formally complained to the Federal Energy Regulatory Commission (FERC). In case FERC wasn’t paying attention yet, the Northwest Ohio Aggregation Coalition, a group representing 11 communities, has also filed a complaint with the federal agency to block the subsidies. The coalition believes “this bailout is not good for northwest Ohio.”

And judging from the myriad groups speaking up, it’s not good for northeast Ohio either, or southeast Ohio, or central Ohio…

Profits Up, Prospects Down 

If you just heard a mic drop, that was the sound of former NRG CEO David Crane after he finished tearing into coal. His article clearly lays out the losing economics of coal plants, which “employ technology that Wall Street deems obsolete.” Indeed, the very same technology whose rising costs FirstEnergy is desperately trying to pin on their captive customers.

But coal is still a leading fuel source worth investing in, right, Crane?

• “Wall Street, emphatically, has turned its back on coal. As recently as five years ago, the top five coal producers in the United States had a combined market cap in excess of $45 billion; two years ago, that number had dropped to $18 billion; and this week, the aggregate market cap of those five coal companies is significantly less than $2 billion. The value of the nation's coal-fired power plants, while more difficult to isolate and then quantify, also is almost certainly at a historical low.”

Crane also notes how the glut of cheap natural gas leaves coal plant owners clinging to a system that just doesn’t make financial sense anymore. So why are they (cough, FirstEnergy) holding on? “Wishful thinking that skyrocketing natural gas prices are just around the corner” is one potential reason offered. Funny enough, projected rising natural gas prices is one of FirstEnergy’s main arguments for why it needs a bailout – even though its price forecasting has always been more political than accurate.

Then again, you could argue the subsidies are entirely political in nature. The article highlights exactly how coal plants are surviving in regulated electricity markets: “because public service commissions allow them to and reward them.” That’s why utilities in Ohio’s deregulated market are turning to politics, rather than economics, to save their plants.

For the time being you won't see these trends reflected in FirstEnergy's 2015 earnings report, which included net profits of $578 million - a whopping 93 percent increase from 2014.

Regardless, Crane succinctly sums up the whole situation: “Maybe it is time for a different approach.” Translation: Even if FirstEnergy wins this battle, they’re fighting a losing war.

Reject the Bailout for FERC’s Sake

As mentioned above, critics of the FirstEnergy bailout have been waving their arms, practically screaming “Do you see what’s going on here?!” to national regulators – otherwise known as FERC. That’s because FERC is the federal agency that makes sure our electricity rates are fairly priced and energy markets operate efficiently.

And you may have heard it was involved in a recent SCOTUS case that has big implications for the electricity industry. The Supreme Court upheld FERC’s rule on demand response, an energy-saving tool that relies on people and technology (not just power plants) to meet electrical demand. Essentially, the decision gave a huge thumbs up to a competitive energy marketplace. So clear was the court’s ruling that even FirstEnergy backed off its related complaint against efficiency and demand response.

In the same vein, the move mirrors the whole point of federal electricity regulation: to create an efficient and economic marketplace that advances “just and reasonable rates.” Last we checked, bailing out outdated, uncompetitive power plants was neither efficient nor economic. And the $4 billion in additional costs can hardly be considered just and reasonable - even in Washington.