News and Analysis
Businesses Increasingly Add On-Site Generation
February 25, 2022The number of U.S. businesses and homes installing on-site power systems has surged in recent years, according to The Wall Street Journal (subscription). Driving the trend is electric reliability concerns along with the falling cost of renewable generation.
The newspaper notes that OMA member Whirlpool Corp. installed wind turbines near its dishwasher plant in Findlay after the company started tracking its greenhouse gas emissions. “It’s not just green,” said Ron Voglewede, global sustainability lead at Whirlpool. “It’s also just cheaper.” 2/21/2022
Ohio Senate Energy Leader Visits OMA
February 18, 2022On Feb. 17, Sen. Rob McColley (R-Napoleon) addressed the OMA Energy Committee’s first meeting of 2022. A member of the Ohio Senate’s leadership team, McColley also chairs the Energy and Public Utilities Committee.
In his remarks, the senator discussed several top concerns, including PJM Interconnection’s proposed changes to its minimum offer price rule (MOPR). McColley, who voted against House Bill 6 in 2019, also questioned the wisdom of Ohio’s ratepayer-funded subsidies for OVEC’s 70-year-old coal-fired generation facilities.
Members were briefed on the latest energy-related developments, including FirstEnergy’s claim that it will be more aggressive in asking regulators to approve customer rate hikes (see related story). The meeting also provided an overview of electricity and natural gas market trends. The OMA Energy Committee meets again May 11. 2/17/2022
FirstEnergy to ‘Be More Active’ in Seeking Rate Hikes
February 18, 2022FirstEnergy will be “much more active” in its efforts to seek rate increases, according to Jon Taylor, the company’s chief financial officer.
Cleveland Business Journal (subscription) reports Taylor recently told securities analysts that to pay for the utility’s “energy transition and base reliability improvements,” FirstEnergy could seek to recover some of its capital expenditures through customer rate cases. Meanwhile, FirstEnergy recently reported 2021 earnings of $1.3 billion. 2/15/2022
Webinar: Manufacturers May Realize Big Savings With AES Ohio Program
February 18, 2022On March 10, the OMA will host a no-cost webinar to examine how manufacturers could significantly reduce their energy costs by participating in AES Ohio’s Transmission Opt-out Program. Qualifying manufacturers that are AES Ohio customers can expect to save $30,000 to $120,000 a year. Learn more and register. 2/15/2022
Capitol Hill Democrats Eye Federal Gas Tax Holiday
February 18, 2022U.S. Senate Democrats are mulling a plan to suspend the federal gasoline tax to lower prices at the pump, according to Politico. The publication notes that Republicans aren’t eager to help Democrats address what they view as a partially self-inflicted wound from high energy prices.
According to one estimate, such a tax holiday would advance the insolvency date of the Highway Trust Fund from 2027 to 2026. 2/16/2022
Fuel Prices Surge Nationwide
February 11, 2022The average gasoline price is up for the sixth consecutive week, according to GasBuddy. This as some experts are forecasting $100 oil and $4 gasoline by Memorial Day. Nationwide, the average gasoline price is currently around $3.47, according to AAA; diesel is around $3.80, the highest price since September 2014. 2/10/2022
New Version of Bill Governing Electric Rates Emerges
February 11, 2022The Ohio House Public Utilities Committee has been presented with a seventh version of House Bill 317, which would modify the manner in which utilities can seek cost recovery from customers.
OMA staff and its retained experts are still reviewing the changes, but it appears the latest version will expose customers to new costs (and new forms of costs) without offsetting benefits. Join the OMA Energy Committee meeting on Thursday, Feb. 17 for a full report and analysis. 2/10/2022
FirstEnergy Must Repay Customers for HB 6 Lobbying
February 11, 2022In the latest punitive action against FirstEnergy for its role in the House Bill 6 scandal, the Federal Energy Regulatory Commission (FERC) has ordered the utility to submit a plan to refund Ohio customers for millions of dollars in lobbying costs tied to the nuclear bailout bill, which was vigorously opposed by the OMA.
According to media reports, FERC’s audit found “improper accounting caused FirstEnergy to overcharge customers and that the utility may have done so to conceal or mislead how much it was spending on lobbying and why.”
In its Feb. 9 editorial, The Toledo Blade wrote, “Refunds aren’t enough,” adding that reforms must be pursued “to make sure there are no more FirstEnergy-type scandals in the future.” 2/9/2022
Take Advantage of Clean Energy Opportunities
February 11, 2022As more manufacturers set sustainability goals, OMA Connections Partner NRG is urging customers to take stock of their energy portfolio. NRG encourages businesses to focus on three specific areas:
- Supply side: Onsite clean energy options include solar; batteries; highly efficient combined heat-and-power systems; renewable-fuel powered generators; power-purchase agreements; renewable energy certificates; and “green” billing options.
- Demand side: Manufacturers are encouraged to have an experienced energy partner audit your site, recommend best practices, and assist with installation.
- Electric vehicles (EVs): Transitioning your fleet to EVs can significantly reduce your carbon footprint.
Read this NRG insight to help your business take a more holistic view of your energy plan and sustainability goals. 2/10/2022
OMA Energy Committee to Meet Feb. 17
February 4, 2022The OMA Energy Committee will host its first meeting of 2022 (with in-person and virtual attendance options) on Feb. 17. Register here.
Members interested in the OMA’s policy committees can review this calendar of all 2022 meeting dates. 2/3/2022