News and Analysis
Reuters reports that the Biden administration would support taxpayer subsidies for aging nuclear power plants to help obtain net-zero emissions goals. According to the news outlet, the federal credits for nuclear power would be similar those for wind and solar. 5/6/2021
Democrats in the U.S. Senate recently introduced the Clean Energy for America Act. The bill would consolidate current energy tax incentives into emissions-based provisions to encourage “clean electricity and transportation” as well as energy conservation. Read this summary by OMA Connections Partner RSM. 5/4/2021
President Joe Biden wants to reduce U.S. greenhouse gas emissions by half by the end of this decade. To achieve this, the country would not only need unprecedented growth in its renewable energy generation, but it would also need what some experts say is a “near-impossible” rapid buildout of our transmission network, according to a new Associated Press report.
In addition to financial and technological hurdles, expanding and modernizing the nation’s electric grid would guarantee legal fights at the state and local levels — including from “NIMBY” (Not In My Back Yard) and “BANANA” (Build Absolutely Nothing Anywhere Near Anyone) groups.
Because of the state and local dynamic, the Biden climate change plan — as well as its challenges and opportunities — will be one of the key topics discussed at the OMA Energy Committee’s next meeting, set for May 27. Register here. 4/29/2021
This week, the House Energy and Natural Resources Committee advanced legislation (House Bill 201) to prohibit local governments from banning or blocking consumers from obtaining natural gas hookups. The OMA worked with the bill sponsor and other interested parties to ensure that the intent of the bill matched its language. A full House vote is expected in the coming weeks. 4/29/2021
Here’s another Ohio advantage: Roughly one-third of the nation’s new, efficient natural gas-fired generating capacity built since 2010 is under the jurisdiction of PJM Interconnection — the grid operator whose service area includes the Buckeye State. This is due to the rapid development of the region’s shale gas resources, according to the U.S. Energy Information Administration. 4/26/2021
Last summer, Columbia Gas Transmission — also known as TCO — filed a rate case proposal with the Federal Energy Regulatory Commission (FERC) to recoup roughly $3 billion in transmission-related expenses. As filed, the proposal could increase transmission charges by as much as 78%.
Direct shippers and customers of natural gas-distribution utilities served by TCO are already seeing the increase in their bills. (Increased charges are subject to refund based on final terms.) For gas-intensive manufacturers, this added cost may be quite significant.
The OMA Energy Group (OMAEG) has intervened in this case to protect manufacturers’ interests, specifically to reduce the proposed rate increase and eliminate any new penalties or operating restrictions. Only parties that intervened last year have legal standing to influence the outcome. Contact OMA staff to learn how you can support the OMA’s litigation efforts. 4/22/2021
U.S. manufacturing consumed 19.4 quadrillion British thermal units (Btu) of energy in 2018, the latest year available, according to Energy Information Administration (EIA). Fuel consumption accounted for about two-thirds of this consumption.
The EIA notes that between 1998 and 2018, U.S. manufacturing’s gross output grew by 12% while the sector’s fuel consumption decreased 16% and its fuel intensity fell by 25%, largely due to technological advancements and greater efficiency. 4/22/2021
This week, the OMA provided testimony on House Bill 201, legislation intended to ensure that every Ohio resident and business has access to available natural gas, while prohibiting local governments from preventing access to this abundant energy source.
In its testimony, the OMA stated its support for the bill. The association is working to clarify HB 201’s language to match its intent. More hearings are expected in the House over the next few weeks. 4/15/2021
The U.S. Energy Information Administration reports that the nation’s energy-related carbon dioxide (CO2) emissions decreased by 11% in 2020 primarily due to the pandemic. Energy-related CO2 emissions fell by 8% in the industrial sector. 4/13/2021
AES Ohio — formerly known as DP&L — has asked the Public Utilities Commission of Ohio (PUCO) to approve an increase of its Transmission Cost Recovery Rider-Non-bypassable (TCRR-N), which is designed to recover transmission-related costs charged to the utility by FERC or PJM. The OMA Energy Group will participate in this case. Energy-intensive manufacturers located in AES Ohio’s 24-county service territory should consider supporting the OMA Energy Group to protect their costs. 4/8/2021