LS Power Announces Ohio Nuclear Subsidy Legislation Will Force Cancellation of its Troy Generating Facility Expansion

Nuclear subsidies in House Bill 6 would undermine the electric market and jeopardize the economics of other generators, including LS Power's Troy Facility in Luckey, OH

LS Power would be forced to terminate development of its Troy expansion project if House Bill 6 is passed by the Ohio legislature

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LS Power

Jul 15, 2019, 11:42 ET

EAST BRUNSWICK, N.J., July 15, 2019 /PRNewswire/ -- LS Power is a development, investment and operating company founded in 1990 focused on power generation, energy infrastructure and related investments. With offices in New York, New Jersey, Missouri, California and Texas, LS Power has developed, constructed, managed and acquired more than 41,000 MW of competitive power generation and over 630 miles of transmission infrastructure.

LS Power currently owns approximately 8,900 MW of generation in PJM, including the 700 MW dual-fuel simple cycle Troy Generating Facility located in Luckey, OH. Troy has the capability to operate on both natural gas and fuel oil and provides critical black start service to help restore the region's grid in the event of a blackout. LS Power is developing an expansion project at the Troy facility to increase the plant's output by approximately 500 MW while also increasing its efficiency by converting it to combined cycle. The project is estimated to require an investment in excess of $500 million and would add hundreds of additional construction jobs, ~20 permanent positions and additional tax base. The project would be funded entirely through private investment with LS Power and its investors bearing all of the risk.

LS Power's investment in Ohio was driven by the PJM market's transparency and competitive attributes and the supportive business climate in Ohio, all of which have resulted in declining energy costs for individuals and businesses in the state.

LS Power is opposed to House Bill 6 and the handouts for Ohio nuclear plants currently being considered in the Ohio Senate as they increase costs, reward inefficiency, place other generators at a disadvantage and undermine Ohio's successful competitive market.

The handouts to nuclear plants jeopardize the economics of the other already economic generators, including the Troy facility, which could chill investment and lead to the unintended consequence of reduced reliability for Ohio's electric generation fleet. In light of the harmful impacts that the nuclear handouts will have on the market and generators like Troy, LS Power would be forced to terminate development of the Troy expansion project if nuclear handouts are passed by the Ohio legislature.

LS Power encourages the Ohio Senate to continue to support the successful competitive electricity market in Ohio, fully consider the negative impacts of House Bill 6 on consumers in Ohio and exercise prudence in the face of the unnecessary request for $150 million per year in handouts for the Ohio nuclear plants.

About LS Power:
For more information, please visit www.LSPower.com

SOURCE LS Power