Energy

Energy costs and reliability were the focus of the Ohio Manufacturers’ Association (OMA) Energy Committee’s meeting on Thursday, reflecting what has become a top concern for both manufacturers and voters. Members examined how rising electricity prices influenced the 2025 elections and why affordability is expected to be a defining issue in next year’s statewide and federal races.

The committee reviewed the OMA’s work to challenge inflated utility load forecasts, discriminatory rate designs and PJM’s record-high capacity prices, all of which are contributing to bill increases beyond the rate of inflation. Energy engineer John Seryak outlined how manufacturers are responding by expanding behind-the-meter generation, adding more than 1,500 megawatts since House Bill 15 opened new competitive pathways.

Members also received updates on natural gas ratemaking changes, submetering legislation, electric vehicle charging rules and emerging technologies. The OMA encourages members to stay engaged to help shape policy and protect affordability. 11/20/2025

The Ohio Manufacturers’ Association (OMA) said the Public Utilities Commission of Ohio’s (PUCO) decision Wednesday ordering FirstEnergy to pay $250 million in penalties is a major victory for ratepayers and one that OMA helped secure. The OMA participated directly in the case and pressed commissioners to hold the utility accountable, making manufacturers’ concerns impossible to ignore in the wake of the House Bill 6 corruption scandal.

OMA President Ryan Augsburger said the ruling is an essential step toward rebuilding trust in Ohio’s energy system and ensuring job creators aren’t left paying the price for past misconduct. He also urged regulators to closely examine the flawed forecasting models that have contributed to rising electric bills and growing unaffordability.

Augsburger noted that “PUCO’s job isn’t done yet,” and the OMA will continue working with regulators and lawmakers to secure competitive rates, strengthen oversight, and advance a modern, accountable energy system that supports Ohio manufacturing. 11/19/2025

Utilities in Texas, Ohio and Pennsylvania are projecting that electricity demand could double or triple in coming years, citing growth in artificial intelligence and data centers. But regulators and watchdogs say those forecasts may be inflated.

Joe Bowring, who heads Monitoring Analytics in the mid‑Atlantic grid territory, said “nobody really knows” whether the projections are speculative, double‑counted or based on projects that may never be built. PJM Interconnection, which operates the nation’s largest power grid across 13 states including Ohio, has reported a surge in requests from data centers, but its market monitor has warned that many of those projects may never materialize.

The Federal Energy Regulatory Commission has opened reviews into how data centers connect to the grid, warning that rushed investments could leave ratepayers footing the bill for billions in new plants and infrastructure. 11/18/2025

PJM members this week were set to vote on a proposal addressing how the regional grid operator should manage large new electrical loads, particularly data centers. The action follows PJM’s use of the Critical Issue Fast Path process, launched Aug. 8, 2025, to develop new rules for accommodating rapid load growth.

After months of stakeholder input, PJM withdrew an earlier plan that would have required data centers to interconnect as non–capacity-backed load, subjecting them to mandatory curtailment during peak hours. PJM is now pursuing a voluntary approach known as “price responsive demand,” which would encourage large users to reduce consumption during grid stress.

Last week, state legislators in the PJM footprint submitted a “Protecting Ratepayers Proposal” urging stricter requirements, including mandatory service interruptions for data centers until they add their own generation. The surge in large-load requests nationwide has placed new pressure on grid operators as they work to balance reliability, cost and economic growth. 11/20/2025

Senate Bill 103, sponsored by Sen. Shane Wilkin, R-Hillsboro, was approved by the Ohio House of Representatives this week and now heads to the governor for final action.

The Ohio Manufacturers’ Association (OMA) opposed the legislation, citing a lack of adequate customer protections. The group warned the bill could be misused, potentially increasing natural gas delivery charges for customers without providing corresponding benefits. The OMA presented opponent testimony and proposed revisions aimed at balancing the bill and ensuring customer value.

More details will be shared at the OMA Energy Committee meeting on Thurs., Nov. 20. 11/13/2025

At the American Nuclear Society conference on Nov. 10, Energy Secretary Chris Wright announced that the Department of Energy’s Loan Programs Office will prioritize loan guarantees for building, restarting or expanding nuclear power plants. Wright said the financing for these projects will be matched at least “three to one, maybe even up to four to one” with low-cost debt from the loan office.

The administration hopes the loans will help ensure dozens of nuclear plants are under construction by the end of President Trump’s second term, following a May executive order calling for 10 large reactors to break ground by 2030. So far, the office has released more than $490 million to restart the 800-megawatt Palisades Nuclear Plant in Michigan, marking the nation’s first restart of a decommissioned commercial reactor. 11/12/2025

The Ohio Manufacturers’ Association this week appealed to the Ohio Supreme Court, asking justices to overturn the Public Utilities Commission of Ohio’s (PUCO) approval of a data center-specific energy tariff. The OMA says the plan unfairly discriminates against high-use customers and puts manufacturers at a competitive disadvantage.

“The PUCO has rigged the scales, greenlighting utility discrimination and setting a precedent that could be used to hammer manufacturers and weaken Ohio’s economic edge,” said OMA President Ryan Augsburger in a statement. “This fight isn’t about one tariff. It’s about fairness, justice and restoring balance for the future of Ohio manufacturing.”

The OMA argues the decision relies on speculative concerns raised by American Electric Power and undermines long-standing principles of fair, nondiscriminatory energy policy. The association is urging the court to restore fairness and protect manufacturers from policies that raise costs and distort Ohio’s energy markets. 11/3/2025

U.S. Energy Secretary Chris Wright has urged the Federal Energy Regulatory Commission (FERC) to reform interconnection rules for large electrical loads. In an Oct. 23 letter, Wright called for faster integration of loads over 20 megawatts — such as data centers and industrial facilities — saying the change would help revitalize U.S. manufacturing.

The proposed rule would allow customers to apply for interconnection of both load and generation simultaneously, which Wright said could shorten approval timelines and speed support for new projects.

Former FERC Chair Mark Christie questioned who would bear the costs and whether the move expands federal authority into areas typically regulated by states. Debate is expected to continue as utilities, customers and regulators respond to growing demand from large energy users nationwide. 11/6/2025

The Ohio Manufacturers’ Association (OMA) testified Wednesday in support of Senate Bill 106 before the Senate Public Utilities Committee, commending state Sen. Bill Reineke, R-Tiffin, for his leadership on the measure. The bill clarifies that electric vehicle charging is a competitive retail electric service, a change the OMA says will promote private investment, innovation and fair competition while protecting ratepayers. The testimony stated the policy will attract new manufacturing and technology jobs and strengthen Ohio’s energy market and economy. 11/5/2025

According to The Washington Post, a new study by Lawrence Berkeley National Laboratory and The Brattle Group finds that data centers are not the primary cause of rising electricity prices.

In fact, increased demand from data centers can sometimes lower rates by spreading fixed infrastructure costs — like poles and wires — across more users. The main culprits behind higher bills are the soaring costs of maintaining and upgrading the electric grid and safeguarding it from extreme weather. Between 2005 and 2024, transmission costs nearly tripled and distribution costs more than doubled.

However, researchers note that if utilities must rapidly expand infrastructure to meet growing data center loads, prices could rise in the coming years. Read the full article here. 10/25/2025

CenterPoint Energy on Oct. 21 announced the sale of Vectren Energy Delivery of Ohio to National Fuel Gas Co. for $2.62 billion.

Vectren Energy Delivery of Ohio’s assets include about 5,900 miles of natural gas distribution pipeline serving 335,000 customers in southwest Ohio, including residential, commercial and industrial users.

CenterPoint acquired Vectren in a $6 billion merger in 2019, which also included Indiana’s natural gas business serving 680,000 customers and an electric distribution business serving 140,000 customers in southwestern Indiana.

The sale must be reviewed and approved by federal and state regulators. If approved, the transaction is expected to close by the end of 2026.

Meanwhile, CenterPoint is seeking a rate increase to recover costs related to system modernization, leak detection and service expansion. If approved, residential customers in southwest Ohio could see total bills rise by about 25%. 10/30/2025

On Tuesday, The Washington Post explored the buzz around “AI factories,” a term championed by tech leaders to liken today’s AI revolution to the transformative Industrial Age.

Ross McGregor, president of Pentaflex and board member of the Ohio Manufacturers’ Association, offered a compelling perspective in the article by contrasting the physical craftsmanship of traditional manufacturing with the abstract, intangible nature of AI development. At Pentaflex, raw steel is transformed into heavy-duty truck brake systems through a hands-on, precision-driven process — a world apart from the virtual “machinery” that powers AI.

The article raises a pivotal question: does the “AI factory” label genuinely capture the essence of AI innovation, or is it merely a catchy metaphor with little substance? 10/21/2025

Senate Bill 219, introduced by state Sen. Al Landis, R-Dover, had its first hearing this week before the Ohio Senate Energy Committee. It’s the first major update to Ohio’s oil and gas laws in more than a decade. The bill creates a protected fund to plug and clean up abandoned wells, streamlines notifications, and modernizes regulations — winning strong bipartisan backing from industry and environmental groups alike.

While focused on oil and gas, the bill also impacts manufacturers near orphaned wells by ensuring steady funding for remediation, reducing environmental risks like groundwater contamination and methane leaks that affect industrial operations and compliance. Streamlined processes may free land for industrial development, aiding manufacturers’ expansion.

Though it imposes no new taxes or regulations on manufacturers, the bill could spur remediation jobs, indirectly benefiting manufacturing sectors tied to energy or equipment supply. As it advances through the Senate Energy and Natural Resources Committee, the Ohio Manufacturers’ Association will continue to monitor its progress. 10/23/2025

Regional electric grid controller PJM has been experiencing significant issues with their interconnection queue backlog in recent years. In 2022, PJM closed its interconnection queue to new generation projects stating it would implement queue reform and be able to process interconnection requests faster after it cleared the existing queue. The reform was approved and rolled out in 2022, and has delayed new generation project applications until 2026. This delay in accepting new projects has helped increase electricity prices in recent PJM energy auctions.

PJM is implementing this reform with a clustered process, also called a “first-ready, first-served” approach. This reform includes two transition cycles to help clear the existing queue. PJM recently announced that it had completed the study process for all Transition Cycle 1 (TC1) projects. TC1 includes almost 9,900 megawatts (MW) of interconnection requests across the PJM region, with more than 440 MW of solar and storage approved to be installed in Ohio. Additionally, PJM has announced approval of 410 MW of natural gas capacity in Ohio under the Reliability Resource Initiative. Although this 850 MW of generation being approved does not guarantee that it will all come online before the next few capacity auctions, or at all, as PJM’s interconnection approval is just one step of many to bring transmission generation projects to fruition. 10/23/2025

As part of the recently enacted House Bill 15 supported by the Ohio Manufacturers’ Association (OMA), electric distribution utilities (EDUs) must now submit more detailed annual reliability reports to the Public Utilities Commission of Ohio (PUCO) and the commission must publish an annual report that summarizes trends and recommends grid upgrades. Previously, EDUs submitted reliability reports, but now, they are required to include more information to the PUCO such as percentage of customers that experience long interruptions, circuits with persistent reliability issues and planned upgrades to improve reliability.

Currently EDUs do not report interruptions that are less than five minutes. Some EDUs are suggesting not reporting interruptions due to major weather events within the new reports. On Fri., Oct. 3, the OMA Energy Group submitted comments to the PUCO encouraging the commission to clarify that EDUs need to report on all interruptions. The OMA Energy Group believes all EDUs should be providing an ever-improving, reliable electricity system and should be held accountable if not. 10/16/25

Scioto Energy has joined forces with Environ Energy, a national energy brokerage and consulting group. This partnership will allow Scioto Energy to expand its ability to provide broader services across a wider geographic area. For its valued customers, partners, and friends, it will remain business as usual. Stakeholders will continue working with the same dedicated team and trusted contacts. Susanne Buckley will continue to serve as the primary interface with the Ohio Manufacturers’ Association (OMA), providing energy market insights and support to all OMA members.

“Scioto represents exactly the kind of company we look to partner with, deeply respected in its region, committed to client success, and aligned with our mission to simplify the energy transition for businesses,” said Chris Sternberg, CEO of Environ Energy. “As we continue to grow, our focus remains on partnerships that create value for clients and strengthen the energy management ecosystem we’ve pioneered at Environ Energy.” 10/13/2025

Amazon founder and tech visionary Jeff Bezos recently predicted during Italian Tech Week 2025 that within the next 10 to 20 years, massive, solar-powered data centers will be built in space, powered by uninterrupted sunlight and natural cooling.

Bezos believes these orbital facilities could be more efficient and cost-effective than terrestrial data centers due to unlimited, weather-free solar energy and an end to limitations on power, cooling and water that exist on Earth.

Artificial intelligence chip producer NVIDIA seems to agree, according to its blog, citing 10-times lower energy costs and reduced energy consumption on Earth. The chip maker operates a startup called Starcloud. 10/16/2025

Global Infrastructure Partners, backed by BlackRock, is in advanced talks to acquire AES Corporation in a deal potentially exceeding $40 billion. AES has rapidly expanded its renewable energy portfolio amid reported rising U.S. power demand—driven by AI and data center growth.

For Ohio manufacturers, this signals a shift toward cleaner, more robust energy infrastructure. The outcome could impact energy costs and supply stability, key factors for industrial competitiveness. AES operates the electric utility system formerly known as Dayton Power & Light (DPL). Read more. 10/9/2025

Data center development has been raising concerns for future grid costs and reliability due to their large electricity needs. In a Climate Week NYC interview, Energy Secretary Chris Wright suggested that data center developers should provide their own electricity if there is not enough available in their grid area. This could be accomplished with behind-the-meter generation, where facilities build generation assets on or near their site and only connect them to their facility, and not the grid. Customers building their own on-site power for their sole use is being referred to as ‘bring your own generation’ (BYOG).

Customer-owned and sited generation has existed for decades, especially at larger manufacturing facilities. The OMA played an instrumental role in advancing state legislation to incent the development of behind the meter generation. 10/9/2025

Electric utilities across the country are forecasting significant increases in demand due to new large loads such as data centers and advanced manufacturing. The OMA has raised concerns about the accuracy of these forecasts, however, and warned that inflated forecasts are driving up customer bills without delivering new generation. Earlier this month, the OMA asked the Public Utilities Commission of Ohio (PUCO) to open an investigation into AEP Ohio’s load forecasts to verify their accuracy and methodology.

Regional transmission operators (RTOs) including PJM are responsible for verifying the accuracy forecasts for planning purposes and to set market demand. Recently, the Federal Energy Regulatory Commission (FERC) Chairman Rosner wrote a letter to the RTOs addressing concerns of load forecast inflation. He states in his letter that, “improving forecasts by even a few percentage points in the right direction … can impact billions of dollars in investments and customer bills.” His letter reflects the concerns of the Electricity Customer Alliance’s letter that was sent to FERC earlier this year, as well as the OMA. 10/2/2025