News and Analysis
EIA: Average Natural Gas Price Likely to Rise in 2024
January 12, 2024The Energy Information Administration expects the U.S. benchmark natural gas spot price at the Henry Hub to average under $3 per million British thermal units (MMBtu) in 2024 and 2025. While this predicted benchmark would be less than half the annual average price in 2022, it would be higher than the $2.54/MMBtu average for 2023. 1/11/2024
Webinar: Clean Energy Tax Incentives
January 12, 2024At 10 a.m. Jan. 25, OMA members can participate in a no-cost webinar to examine new incentives that assist businesses with financing and constructing clean energy-related assets. Experts from Bricker Graydon, the OMA’s general counsel, will conduct this online event. Register here. 1/9/2024
Update: Section 45X Tax Credit
January 12, 2024Section 45X was added to the federal tax code by the Inflation Reduction Act as an incentive for manufacturers producing various components for clean energy technologies. OMA Connections Partner CliftonLarsonAllen has published this update to provide guidance on how to claim the credit. 1/10/2024
Utility Giveaway Signed Into Law
January 5, 2024On Dec. 28, Gov. Mike DeWine signed House Bill 201 containing the Ohio Senate’s last-minute provision to authorize a potentially far-reaching utility giveaway.
In the name of “economic development,” the OMA-opposed provision will permit additional above-market costs on business and residential customers, while stripping consumer protections.
This editorial by The Blade (Toledo) lambasted the language in HB 201, writing that it’s “counterproductive to the fortunes of existing Ohio businesses to have additional expense added to their energy costs.” 1/4/2024
OMA: PJM Overstated Capacity Shortfall Risks
January 5, 2024Manufacturers will want to check out this story published by Utility Dive regarding the OMA’s concern that the PJM Interconnection has overstated capacity shortfall risks. As the article notes, PJM’s estimate is fueling arguments against competitive markets, even as investigations continue into the House Bill 6 scandal. 1/4/2024
‘Clean Energy’ Manufacturing Grant for Appalachia
January 5, 2024A $10 million federal grant announced this week seeks to attract small- and mid-sized manufacturers specializing in “clean energy” supply to Appalachian counties, including Ohio. Read more. 1/4/2024
Are EV Sales Soaring or Flopping?
January 5, 2024There are conflicting messages about electric vehicles. Are they booming — or are they piling up on dealer lots? E&E News reports that both happen to be true, adding the U.S. market for EVs is growing, just not at the blistering pace it was a few months ago.
Meanwhile, the number of EV models that qualify for federal tax credits fell from 43 to 19 this week after new guidance on foreign-made EV components. This has left automakers anticipating more uncertainty, reports say. 1/3/2024
Manufacturers Blast New Hydrogen Tax Credit Rules
December 28, 2023The National Association of Manufacturers has criticized the Biden administration’s newly proposed regulations impacting the federal Clean Hydrogen Production Tax Credit. The rules would impose many hurdles to qualifying for the credit while blocking job-creating investments, the NAM says. 12/26/2023
Bill Aims to Alter PUCO Appointment Process
December 28, 2023House Bill 363 has been introduced to reform the appointment process for the Public Utilities Commission of Ohio. Among the changes would be a requirement that one of the five commissioners be selected by the governor from a list provided by the Ohio Consumers’ Counsel. This report by Gongwer News Service provides further details. 12/26/2023
Experts: Take Advantage of Lower Energy Prices
December 21, 2023The El Nin͂o weather pattern has brought above-normal temperatures to much of the U.S., resulting in lower energy prices. OMA Connections Partner Scioto Energy reports that as of mid-December, natural gas and electric power prices had tumbled 28% and 10%, respectively.
Gas and electricity pricing will continue to be under pressure this winter due to lower heating demand, natural gas storage levels above the five-year average, production at all-time highs, and no increase in LNG exports expected until late 2024.
Cold weather bursts will result in price volatility, but longer-term pricing is in a sweet spot not seen since before Russia’s invasion of Ukraine, according to Susanne Buckley, partner at Scioto Energy. This is a good time to contact your energy advisor to take advantage of this market opportunity, Buckley said. 12/20/2023