Energy Management

Substantial Increase Hitting Natural Gas Bills

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

Manufacturers Significantly Reduce Fuel Use

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

OMA Testifies on Natural Gas Access Bill

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

U.S. Energy-Related CO2 Emissions Declined by 11% in 2020

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 Proposes Transmission Rate Increase

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

U.S. Energy Consumption Fell 7% in 2020

U.S. energy consumption fell a record 7% last year, largely due to the pandemic lockdowns. It was the largest annual decline by percentage and in absolute terms since 1949, when the U.S. Energy Information Administration began recording consumption data. 4/5/2021

Gov. DeWine Signs HB 128 to Partially Repeal HB 6

Gov. Mike DeWine this week signed HB 128, which cancels out the nuclear subsidy provisions of HB 6 (133rd General Assembly), originally targeted to support the Davis-Besse and Perry nuclear plants to the tune of up to $150M/year. Later, of course, it was learned how HB 6 was fatally flawed by scandal. Earlier this year, the OMA testified on HB 128.

HB 128 also removes the costly HB 6 “decoupling” provision, which tied FirstEnergy future profits to record year 2018 regardless of the amount of power sold, about $978M annually. The new law also revokes a change made to the Significantly Excessive Earnings Test, which benefited only FirstEnergy by allowing the company to combine profits across three of its companies to avoid customer refunds from its overly profitable company.

The new bill retains HB 6’s subsidies for utility-scale solar projects and for two coal plants (one in Ohio, one in Indiana), leaving the door open for more corrective action that could cancel these subsidies that work against ratepayers.

The bill was voted unanimously in the Senate 33-0, 86-7 in the House originally, but then the House unanimously (89-0) concurred with the Senate amendments. HB 128 was sponsored by Reps. James Hoops (R-Napoleon) and Dick Stein (R-Norwalk). 3/31/2021

Bipartisan Senate Bill Would End Subsidies for OVEC Coal Power Plants

Sen. Romanchuk (R-Mansfield) and Sen. Hearcel Craig (D-Columbus) this week presented compelling testimony on SB 117 to repeal the subsidies granted in 2019’s HB 6 for two uneconomical coal plants owned by the Ohio Valley Electric Corp. (OVEC), one of which is in Indiana.

The owners of the plants are AEP, Duke and AES Ohio (formerly Dayton Power & Light). The proponents say that ratepayers should not be forced to pay for past poor business decisions.

Separately, Sen. Romanchuk also testified in support of SB 118 to rollback $20 million a year in payments to five solar projects – another subsidy folded into the corrupt HB 6.

Both measures are supported by OMA to continue to get Ohio’s energy policy back on track. More to come. 3/31/2021

FirstEnergy Reverses – Will Refund Controversial Decoupling Charges

FirstEnergy announced it will return $26M in decoupling charges collected from customers under the 2019 HB 6 law. The company voluntarily halted collections earlier this year under a settlement with Attorney General Dave Yost. The OMA Energy Group has been an active voice in legal proceedings, partnering with the Attorney General and Office of Consumers’ Counsel, consistently advocating for refund of decoupling dollars.

FirstEnergy originally indicated it would not refund the $30M it collected under the authority of HB 6. Noting that the company is not refunding all ill-gotten gains, Ohio’s Consumers’ Counsel Bruce Weston said that Ohio should not allow FirstEnergy to walk away from HB 6 with even a penny of consumers’ money.

With this week’s passage of HB 128, which removed the HB 6 decoupling provision from law, FirstEnergy apparently reconsidered its position. The decoupling provision would have guaranteed FirstEnergy’s annual revenue at its 2018 record-setting level regardless of energy sold. 3/31/2021

Could Texas Outages Happen Here?

Ohio’s electric system is fundamentally different from the one in Texas, and Ohio has learned from prior experience.

Read a short post by the Public Utilities Commission of Ohio about how the two systems differ and how Ohio’s grid is poised for weather events. 3/30/2021