Quotes of the Week
When you’re dealing with a huge, politically powerful Goliath, the Davids must use every weapon at hand. In this case, that weapon is forceful language. Here’s a greatest hits sampling from the opponents’ briefs:
• Sierra Club on FirstEnergy’s lack of justificatory proof:
FirstEnergy “must, at a minimum, provide the type of forward-looking financial information that is necessary to reviewing the justness and reasonableness of the [proposal] and required by [law]. The Companies’ steadfast refusal to do so renders the [proposal] un-approvable on this record.”
• PJM on risk and Ohioans:
“Ohio customers should not be forced to pay subsidies to sustain particular generators in the PJM market and to shoulder investment risks properly placed on investors. The [original deal] was a bad bargain for Ohio customers and not in the public interest. The New Plan is no better, and it should not be approved.”
• Ohio Manufacturers’ Association on competition and economic impact:
The bailout “will in no way stabilize rates or create rate certainty. This lack of stability and certainty will impede the ability of companies, including manufacturers, to make sound business decisions regarding pricing and will thwart their ability to take advantage of competitive market pricing […] The overall effect is a negative impact for customers and for the economic development of the state of Ohio as a whole.”
• Ohio Consumers’ Counsel on who’s to blame for bad credit:
“Upon closer inspection, it becomes clear that this [credit] downgrade is due to the FirstEnergy Corp.’s mismanagement of its own competitive generation affiliates. In a manner, Ohio consumers would be footing the bill for a credit support proposal that is necessary due to management’s decisions regarding FirstEnergy’s competitive affiliates. […] The credit support proposal violates Ohio law, sets a dangerous public policy precedent, and harms consumers.”
• Environmental Defense Fund and Ohio Environmental Council on the message the PUCO would send by approving the bailout:
“A decision by this Commission to approve any credit support rider unreasonably and unlawfully rewards First Energy Corp.’s bad behavior. Approval of the proposal sends a clear message for all [distribution utilities] – if your parent company makes bad investments, if management has no plans to protect its credit rating or cash flow, do not worry, the Commission will make sure customers cover it.”
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