By Editors of Power Engineering

A bill currently being considered by the Ohio House of Representatives would create a permanent subsidy for two coal plants co-owned by American Electric Power.

HB 239 would give the owners of Ohio Valley Electric Corp., which include more than a dozen parties in several states, guaranteed income when the market price of electricity drops below the cost of running Kyger Creek in Cheshire and Clifty Creek in Madison, the Columbus Dispatch reported. The money would come from a charge to customers, though customers would be credited when the plants are profitable.

The arrangement is similar to a plan approved by the Public Utilities Commission of Ohio for AEP, though that plan requires reapproval every few years. HB 239 would last the through the life of the plants.

Both coal plants came online in 1955. AEP owns 43 percent of Ohio Valley Electric.