First Energy Strikes Deal with Hedge Funds

(Oak Harbor, OH) The future of the Davis-Besse nuclear power plant is in doubt once again.

First Energy struck a deal with four hedge funds, which will contribute $2.5 billion over the next 18 months-- but there's a catch. Those private investors also will help the struggling utility either shed its money-losing power plants or get them protected from competition under some sort of government regulation. 

The Federal Energy Regulatory Commission recently rejected the idea of "special fees" for aging plants like Davis-Besse. 

That only leaves state lawmakers to give First Energy some sort of special subsidy for its nuclear plants, which they've been reluctant to do. But the utility will get another chance to make its case. An Ohio Senate committee hearing is set for Thursday. 

Failing any special fees, it's likely plants like Davis-Besse will be shut down and mothballed.


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