News and Analysis
Utility Master Plan Reveals Schemes to Fleece Ohio Customers
March 15, 2024Newly obtained documents released in the HB 6 corruption investigation reveal that Ohio utilities produced a wish list of reforms, many of which were included in HB 6, and many that have been the subject of legislative or PUCO proposals since HB 6. The March 19, 2019 email that originated from an AEP executive to FirstEnergy Senior Vice President Mike Dowling, who was indicted under state corruption charges in February, suggests that utilities assembled a master plan to redistribute funds from customers to regulated monopoly utilities.
The AEP email that appears to have been used for a meeting with Larry Householder and FirstEnergy in April 2019 makes numerous suggestions for customer-funded subsidies for new utility-owned generation. The plan also schemes ways and charts out methods to further pillage customers to fund infrastructure beyond traditional ratemaking models. Finally, the plan allows utilities to own and control behind-the-meter technologies and rate base EV charging stations, authorize utilities to operate broadband networks, and pursue formula rates, known as alternative rate mechanisms, a concept contained in Senate Bill 102 (Wilkin) now pending in the Ohio Senate.
The document begs many questions and connects the dots on why all Ohio utilities supported HB 6. The OMA has obtained other related emails that will be included and discussed at the upcoming OMA Energy Committee on May 8. 3/7/2024
Ohio House Considers Bill to Increase Electric Bills, Decrease Consumer Protections
March 8, 2024The Ohio House Public Utilities Committee is currently evaluating many different energy proposals. Among these is House Bill 260, which proposes to add more charges to customers’ bills through new distribution riders while decreasing consumer protections.
OMA’s Energy Counsel, Kim Bojko with Carpenter Lipps LLP, has put together an analysis of HB 260 which outlines key concerns that would affect manufacturers. 3/6/2024
OMA Kicks off First Energy Committee of 2024
March 1, 2024The OMA held its first Energy Committee of 2024 this week to a packed room and even more joining virtually. Thank you to everyone who attended.
Highlights included:
- An update on the ongoing electric reliability scare, including a discussion of recent PJM activity.
- Analysis of community solar substitute bill.
- Discussion of pending legislation affecting electric customers: SB 143, SB 102, HB 260.
- Special guest Dr. Joe Bowring, PJM’s Independent Market Monitor.
Gas and electric market trends. 2/28/2024
Householder Appeal
March 1, 2024Former Ohio House Speaker Larry Householder filed an appeal with the 6th Circuit U.S. Court of Appeals earlier this week, seeking to reverse his 20-year prison sentence. He was found guilty in March 2023 of engaging in a racketeering conspiracy in connection with the passage of House Bill 6.
Householder’s lawyers made several arguments in the filing, ranging from evidentiary problems with his trial to debating the acceptable political uses of anonymously funded contributions. His lawyers also argued that a bribe agreement must be explicit.
Federal prosecutors have until March 27th to respond. 2/27/2024
OMA to Host Energy Committee Next Week
February 23, 2024The OMA will host the first Energy Committee of 2024 next week on Wednesday, February 28th at 10 am.
Highlights include:
- An update on the ongoing electric reliability scare, including a discussion of recent PJM activity.
- Analysis of community solar substitute bill.
- Discussion of pending legislation affecting electric customers: SB 143, SB 102, HB 260.
- Special guest Dr. Joe Bowring, PJM’s Independent Market Monitor.
Gas and electric market trends. 2/21/2024
PUCO to Lift Stay on Internal HB6 Investigations
February 23, 2024This week the Public Utilities Commission of Ohio (PUCO) ordered the four internal investigations related to FirstEnergy and House Bill 6 to resume.
The investigations had been paused since Aug. 20, 2022 at the request of the U.S. Attorney for the Southern District of Ohio.
This week’s action may allow the U.S. Attorney time to request another extension of the stay, further delaying justice. 2/21/2024
OVEC Subsidies Dramatically Increase, $100M in the first half of 2024
February 16, 2024The OMA’s energy experts, Runnerstone LLC, recently published a memo detailing the dramatic increase in rider costs this year, totaling about $100 million from January through June.
By then, Ohio ratepayers will have paid ~$500 million in OVEC subsidies in total, including both pre-HB6 and HB6 subsidies, with a forecast of close to $1 billion by 2030. 2/14/2024
RunnerStone LLC Publishes Memo on Community Solar Program
February 16, 2024A memo by OMA’s energy engineering consultant, RunnerStone LLC, has been updated analyzing the latest version of House Bill 197, which would establish a community solar program that allows solar to connect to the distribution grid.
Unfortunately, the proposed legislation contains two bill credit mechanisms that would shift costs onto non-participating ratepayers.
The bill is currently pending in the House Public Utilities Committee. 2/12/2024
OMA Leads Questioning of Electric Reliability Scare
February 9, 2024Last week, the OMA was joined by partners and members in a media briefing to provide customer perspective on electric reliability and concerns regarding overstated shortfall risks by PJM Interconnection. The event preceded a Feb. 1 joint hearing of Ohio and Pennsylvania lawmakers that examined interstate relationships within the PJM electric grid.
The OMA was successful in leading the charge questioning the accuracy of the report and offering consumer concerns that the report would expose manufacturers and others customers to significant new costs.
Coverage included mentions in Cleveland.com, the Toledo Blade, Hannah News Service, and RTO Insider.2/7/2024
Pre-Filing Registration Tool for Clean Energy Credits
February 9, 2024The IRS recently announced the launch of the IRA/CHIPS Pre-Filing Registration tool, which will allow qualifying businesses to monetize a tax credit as provided by the federal Inflation Reduction Act and section 48D advanced manufacturing investment credit in the CHIPS Act. As reported by OMA Connections Partner RSM, the tool can be accessed at this IRS web page. 2/7/2024