News and Analysis
OMA Energy Roundup
March 11, 2022Here’s a summary of recent energy-related developments the OMA is tracking:
- A new study finds that closing Enbridge’s Line 5 pipeline would force Ohio families and businesses to pay more than $2.7 billion more for transportation fuel every year.
- Oil could reach $240 per barrel over the coming months if countries more heavily sanction Russian exports, say analysts with Rystad Energy.
- The average gasoline price in Ohio now exceeds $4 a gallon, according to AAA’s interactive map. Here are the latest oil and natural gas prices in the U.S.
- Energy prices were the main driver of last month’s 7.9% spike in year-over-year consumer prices, according to this chart from the U.S. Bureau of Labor Statistics.
- Reports say Congress may consider overturning FERC’s new requirement to take climate change into greater consideration when reviewing fossil fuel energy projects.
Meanwhile, the Public Utilities Commission of Ohio (PUCO) has announced it will hire an auditor to examine whether any customer money collected by FirstEnergy was improperly used to pay for lobbying or political work to pass the corrupt House Bill 6, which the OMA opposed from the beginning. 3/10/2022
Using Flexible Demand to Lower Your Energy Costs
March 11, 2022Flexible demand is the ability of demand-side loads to change consumption patterns by using smart technologies, thereby resulting in cost-savings and improved efficiency. OMA Connections Partner NRG has published this whitepaper to help businesses better manage energy, while shifting demand without disruption and without new capital investment. 3/7/2022
OMA Opposes Energy ‘Trojan Horse’
March 4, 2022Despite all that has transpired in recent years in the wake of the corruption surrounding House Bill 6, state lawmakers in the Ohio House are considering another bill to benefit utilities at the expense of customers.
At a March 2 hearing on the latest version of House Bill 317, OMA Chief Energy Counsel Kim Bojko testified before the House Public Utilities Committee to oppose the measure on behalf of Ohio manufacturers. (Watch the OMA’s testimony beginning at 37:55 of this video.)
In her testimony, Bojko highlighted four main reasons for the OMA’s opposition. She also addressed how the cost cap governing new charges is limited. Take action by contacting your state representative and tell them to vote no on HB 317. 3/3/2022
Bill to Promote EVs Includes Massive Utility Giveaway
March 4, 2022This week, Sen. Mike Rulli (R-Salem) introduced Senate Bill 307 — legislation that would address a variety of worthwhile topics (incentive programs, workforce, and factory retooling) to ensure Ohio retains its place as a global leader in automotive manufacturing as the industry continues to pivot toward electric vehicles (EVs).
Regrettably, the bill would expand Ohio’s utility law by allowing monopoly utilities to own and operate EV charging stations — and then pushing costs onto captive customers. The bill would require the PUCO to approve transportation electrification programs (TEPs) operated by electric utilities, without questioning the need for cost recovery or being able to modify TEPs.
If enacted in its current form, this would constitute a massive new blank check on the backs of customers served by Ohio’s four investor-owned utilities, while undercutting the competitive market to own and operate EV charging stations. (Keep in mind that billions in federal funds are heading to the states to promote EV charging, raising further questions about the utility expansion in SB 307.) 3/3/2022
OMA Suggests Remedies for Community Solar Bill
March 4, 2022Testifying before the House Public Utilities Committee on March 2, the OMA’s energy engineering consultant, John Seryak of RunnerStone LLC and Go Sustainable Energy, highlighted concerns with House Bill 450.
HB 450 would create community solar — that is, relatively small installations that could feed power to homes and businesses located nearby. Unfortunately, the magnitude of the distribution and transmission cost-shifting through new “virtual net-metering” provisions could be huge — roughly $225 million per year. In his testimony, Seryak provided potential remedies, which the OMA will continue to advocate. 3/3/2022
Interactive Map Shows Ohio’s Solar Projects
March 4, 2022The Ohio Power Siting Board has published this interactive map of solar farms in Ohio. The map can display solar farms near specific addresses or by case status. 3/1/2022
How Secure Is America’s Electric Grid?
March 4, 2022CBS News recently aired this story examining the vulnerabilities of the U.S. electric grid, whether the attack is physical, natural or cyber-based. Experts estimate that the entire grid could go down — coast to coast — if saboteurs disabled just nine of the nation’s 55,000 transmission substations, the network reported. Over the past decade, the grid has endured more than 700 physical attacks. 3/1/2022
At a Glance: America’s Russian Oil Imports
March 4, 2022As Russia continues its invasion of Ukraine, critics, including Ohio’s U.S. Sen. Rob Portman, are lamenting President Biden’s 2021 decision to shut down the Keystone XL Pipeline project and for not taking steps to halt Russian oil imports into the U.S. The U.S. imported 245 million barrels of Russian crude oil and petroleum products last year — a surge of about 24% over 2020, according to the Energy Information Administration. 3/2/2022
Monitoring the Impact of the Russia-Ukraine Conflict
February 25, 2022The effects of Russia’s actions against neighboring Ukraine could “ripple across the U.S. energy sector and stress Biden’s climate agenda,” according to reports, as high energy prices are likely to last for months. (This infographic provides key facts about Ukraine’s economy and natural resources.)
Here’s a look at the latest oil, natural gas, electricity, and gasoline prices in the U.S. (In Europe, natural gas prices — which were already roughly four times higher than the previous decade’s average — could double, analysts say.)
Meanwhile, the U.S. energy sector should be “on high alert” for Russian cyberattacks, according to experts. 2/23/2022
U.S. Fossil Fuel Production Recovers; FERC Decision Could Hinder Future Gas Projects
February 25, 2022U.S. oil and natural gas production have recovered to near all-time highs. The Washington Examiner has published this series of charts illustrating recent growth in domestic fossil fuel production.
Despite this recovery, the Federal Energy Regulatory Commission (FERC) recently voted 3-2 to more rigorously consider climate change when weighing approval of natural gas pipelines and similar projects — a move that will make it more difficult to build fossil fuel infrastructure. U.S. Sen. Joe Manchin (D-W.Va.), chair of the Senate Energy and Natural Resources Committee, called FERC’s action “reckless.” 2/23/2022