Judge halts Energy Harbor nuclear subsidies

Here is a look back at the top stories of 2020 from our Power and Operations section in Newswire and Nuclear News magazine. Remember to check back to Newswire soon for more top stories from 2020.

Power and Operations section

• Defense Department invests in three microreactor designs: Three reactor developers got a boost on March 9 when they each were awarded a contract from the U.S. Department of Defense to design a reactor that can fit inside a standard shipping container for military deployment. Read more.

New legislation to address Ohio’s scandal-ridden nuclear subsidy bill, H.B. 6, was introduced in the state’s House of Representatives on December 1. Unlike the measures introduced earlier this year that sought to either fully or partially repeal the bill, H.B. 798 calls for delaying subsidies for the Davis-Besse and Perry nuclear plants by one year. (Currently, charges on ratepayers’ monthly electric bills are set to begin in January.) Cleveland.com has more on the story.

Chuck Jones, former FirstEnergy CEO

Akron, Ohio-based FirstEnergy Corporation—former parent of Energy Harbor, the owner of Ohio’s Davis-Besse and Perry nuclear plants—announced on October 29 that it has fired its chief executive officer, Charles “Chuck” Jones, as well as its senior vice president of product development, marketing, and branding and its senior vice president of external affairs.

The actions, according to FirstEnergy, were prompted by an internal company review undertaken in response to the scandal surrounding H.B. 6—the now infamous legislation signed into law last year by Ohio Gov. Mike DeWine that includes subsidies for Davis-Besse and Perry and that is at the heart of an alleged multi-million dollar racketeering and corruption scheme aimed at guaranteeing its passage.

In the announcement, FirstEnergy said only that its review “determined that these executives violated certain FirstEnergy policies and its code of conduct.” Replacing Jones is Steven E. Strah, who had been the firm’s president.

Some two weeks after its creation, the Ohio House Select Committee on Energy Policy and Oversight held its first hearing on September 10 to consider a potential repeal of the Ohio Clean Air Program Act (H.B. 6).

H.B. 6 is the sweeping energy law that includes subsidies for the state’s two nuclear power plants, Davis-Besse and Perry, and that is currently at the center of an alleged $61-million corruption scheme aimed at guaranteeing its passage.

Newly elected Ohio House Speaker Bob Cupp (R., Dist. 4)—who replaced Rep. Larry Householder (R., Dist. 72) as speaker following the latter’s July 21 arrest as the scheme’s alleged ringleader—announced the committee’s creation in late August. Cupp stated that its goal is “repealing House Bill 6 and replacing it with thoughtful legislation Ohioans can have confidence in.”

The committee’s initial hearing, however, focused only on efforts to immediately repeal the measure. Proponents of two repeal bills—one backed by Republicans (H.B. 746) and one by Democrats (H.B. 738)—argued their positions, with some displaying greater rhetorical gifts than others.

Despite high-profile calls to repeal the scandal-tainted Ohio Clean Air Program Act (H.B. 6) and recent legislation crafted toward that end in both the Ohio House and Senate (66 of 99 House members have reportedly co-sponsored Democratic or Republican bills to repeal H.B. 6), the policy behind the measure continues to garner support.

As reported here on August 26, the six commissioners from Ohio’s Lake and Ottawa counties—home to Davis-Besse and Perry, the two nuclear plants saved from early closure by H.B. 6—have made clear their opposition to an immediate repeal of the act.

All six commissioners from Ohio’s Lake and Ottawa counties—home to the Perry and Davis-Besse nuclear plants—joined forces last week to express their opposition to an immediate repeal of the Ohio Clean Air Program Act (H.B. 6), which was tainted by last month’s scandal involving former Ohio Speaker of the House Larry Householder and four associates.

Signed into law by Ohio Gov. Mike DeWine in July last year—rescuing Perry and Davis-Besse from premature closure—H.B. 6 has become the subject of multiple calls for repeal since Householder’s July 21 arrest, including one from DeWine himself.

Householder

Federal prosecutors on July 21 arrested the Speaker of the Ohio House of Representatives, Larry Householder, and four lobbyists and political consultants for their involvement in an alleged $61-million corruption and racketeering scheme aimed at guaranteeing passage of H.B. 6, the Ohio Clean Air Program Act—the measure that rescued Ohio’s Davis-Besse and Perry nuclear power plants from premature closure. If convicted, Householder et al. face up to 20 years in prison.

The American nuclear professional community is deeply disturbed by alleged political corruption in Ohio related to the passage of House Bill 6. If the allegations are true, they represent a breach of public trust that should be prosecuted to the fullest extent of the law.

FirstEnergy Solutions (FES) announced on February 27 that it has emerged from bankruptcy and officially taken the new name Energy Harbor Corporation. Originally the unregulated power generation arm of Akron, Ohio–based FirstEnergy Corporation, Energy Harbor remains headquartered in Akron but is no longer affiliated with FirstEnergy Corporation. The name chosen to represent the newly independent business was announced last November (NN, Jan. 2020, p. 16).