Energy

Ohio’s energy conversation took a nuclear turn last week as data center developers and large customers outlined plans to secure large amounts of reliable power to support new, large-scale electricity loads. Announcements involving Meta and Vistra renewed focus on Ohio’s existing nuclear fleet, including the Davis-Besse Nuclear Power Station and the Perry Nuclear Power Plant, and their continued role in supporting reliability across the PJM Interconnection.

The developments also highlight how competitive electricity markets are responding to surging demand, with large customers turning to nuclear power for around-the-clock reliability and long-term price certainty. Importantly, the agreements rely on long-term power contracts that keep existing plants operating while supporting future generation that remains connected to and dispatched through the PJM grid, reinforcing systemwide reliability rather than bypassing it.

The week’s news also pointed to longer-term ambitions. Proposed small modular reactor development in Pike County added substance to the discussion, with Oklo and Meta outlining plans for a large nuclear campus that would build on recent federal investment in uranium enrichment in southern Ohio.

The takeaway for manufacturers is scale and certainty. Large new electric loads are reshaping how generation is planned, financed and operated. “Reliability and affordability still have to come first,” said Lindsey Short, Ohio Manufacturers’ Association (OMA) managing director of advocacy and energy services. “New demand does not change the need for disciplined planning and realistic assumptions.”

The OMA’s Energy Committee will continue tracking these developments and providing members opportunities to engage with the companies and policymakers shaping Ohio’s energy future. 1/12/2026

FirstEnergy is asking Ohio regulators to weaken reliability standards for its utilities, including allowing longer power outages and more frequent service interruptions. The company told the Public Utilities Commission of Ohio that performance has slipped and is seeking approval for higher outage duration and frequency targets. Consumer advocates and local officials argue customers have already paid billions for grid upgrades and should expect stronger reliability, not reduced expectations. Dependable power is essential for manufacturers. “Manufacturers cannot plan, invest or compete with unreliable power,” said Lindsey Short, Ohio Manufacturers’ Association managing director of advocacy and energy services. “Lowering the bar on outages asks customers to accept less after paying more, and that is not a solution.” 1/13/2026

A new court filing shows Gov. Mike DeWine and U.S. Sen. Jon Husted may be among potential witnesses listed in the upcoming FirstEnergy corruption trial scheduled to begin Jan. 26. Lawyers for two former FirstEnergy executives disclosed a defense witness list that includes Gov. DeWine, Sen. Husted and other state officials as the case moves forward in Summit County Common Pleas Court. The filing does not guarantee those individuals will be called to testify, but it indicates the defense’s strategy and what issues may arise. The Ohio Manufacturers’ Association will continue monitoring developments in this longstanding matter. 1/14/2026

Ohio regulators have approved a $275 million settlement resolving cases tied to FirstEnergy’s role in the House Bill 6 bribery scandal, directing refunds and restitution to utility customers after investigations found violations of state law and regulatory rules. The settlement concludes multiple proceedings before the Public Utilities Commission of Ohio related to improper political spending and legislative influence.

The Ohio Manufacturers’ Association (OMA) has been engaged on House Bill 6 and utility accountability issues since the legislation was first introduced. In 2019, OMA released an analysis detailing the potential impact of the bill on manufacturers’ electricity costs and competitiveness and issued a Key Vote Alert to the Ohio Senate urging careful consideration of the bill’s implications. As the law moved into implementation, OMA continued raising concerns about increased regulation, market distortion and the role of state intervention in Ohio’s competitive electricity market.

OMA’s Energy Group has consistently urged regulators to hold utilities accountable and protect customers from higher costs tied to flawed policy decisions. The association will continue monitoring implementation of the settlement and advocating for transparent regulation, competitive markets and fair electricity rates that support Ohio manufacturers and the state’s economy. 1/8/2026

Electricity costs for Ohio manufacturers remain under pressure after PJM Interconnection’s latest capacity auction produced another round of historically high prices. A new analysis prepared by the Ohio Manufacturers’ Association’s (OMA) energy engineering consultant, RunnerStone, shows capacity prices for power delivered in summer 2027 rose again to $333.44 per megawatt-day, pushing total regional costs to an estimated $16.4 billion.

OMA has been actively raising concerns about PJM’s market design and planning decisions, including in a July 2025 letter to the PJM Board calling for greater transparency, realistic load forecasting and reforms to restore effective market signals. That advocacy aligns closely with the findings in the new RunnerStone memo. Additionally, just last month OMA again called for changes at PJM following the release of capacity auction results.

The new analysis points to a series of PJM decisions that continue to tighten supply on paper while failing to deliver meaningful new generation. Those include delayed and compressed auction schedules, a multi-year pause on new generation entering PJM’s interconnection queue, higher reserve margin targets and additional derating of existing resources. Together, these factors limit the market’s ability to respond to price signals and place upward pressure on costs.

The memo also raises fresh questions about load forecasts, particularly large adjustments tied to projected data center demand. RunnerStone notes that these forecasts play a significant role in driving auction outcomes, yet transparency around assumptions and methodologies remains limited. For manufacturers, the result is higher and more uncertain electricity costs, with little clarity on whether the system is becoming more reliable or simply more expensive. 1/8/2026

Persistent, record-high capacity prices in PJM have fueled debate over their causes, with power plant retirements and new data center demand most often cited.

A report released this week by Monitoring Analytics, the independent watchdog of PJM’s electricity markets, points to a different driver. The report found that utility load forecasts for future data centers were a primary factor behind the latest capacity auction’s record prices.

According to the analysis, speculative data center load forecasts increased capacity prices by 61%, while existing and committed data center load accounted for just a 4% increase. The market monitor estimated that forecasts tied to unbuilt data centers could add more than $47 billion in capacity costs over a three-year period.

“It is misleading to assert that the capacity market results are simply a reflection of supply and demand,” Monitoring Analytics said, citing unprecedented uncertainty in utility load forecasts tied to potential large-scale data center development.

The Ohio Manufacturers’ Association has previously raised concerns about the accuracy and transparency of utility load forecasts, warning that speculative assumptions can artificially inflate capacity prices. While some forecasted data center projects may be built, much of the projected load remains uncertain, the report said, underscoring the significant role these forecasts play in driving higher costs. 1/8/2026

Early this week, the U.S. Department of Energy announced $2.7 billion in funding to support domestic uranium enrichment for nuclear energy. Three companies will receive $900 million each as part of the department’s effort to shift the U.S. uranium supply away from foreign sources and strengthen domestic production. The selected companies are American Centrifuge Operating, General Matter and Orano Federal Services. American Centrifuge Operating owns and operates the American Centrifuge Plant in Piketon, Ohio.

In December 2025, American Centrifuge Operating announced plans to expand commercial production of low-enriched uranium and high-assay low-enriched uranium, materials used in different types of nuclear reactors. The company has a long-standing relationship with the Department of Energy and, in partnership with the agency, produced the nation’s first 20 kilograms of domestically sourced high-assay low-enriched uranium in 2023. Following that demonstration, the company was awarded a contract to produce an additional 900 kilograms by 2024. The newly announced funding is intended to support the commercialization of that production process. 1/8/2026

The Ohio Manufacturers’ Association (OMA) is renewing concerns about rising electricity costs following this week’s release of PJM Interconnection’s latest capacity auction results, warning that persistent price spikes threaten Ohio’s manufacturing competitiveness.

On Wednesday, PJM posted the results of its capacity auction for the 2027–28 delivery year. For the second auction in a row, prices hit a temporary price ceiling, with capacity clearing at $333.44 per megawatt-day, an unprecedented high for the PJM region.

“PJM’s announcement of record-high electricity prices is as unacceptable as it is unsurprising,” said Ryan Augsburger, OMA president. “PJM is broken. It needs new leadership and immediate reform.”

PJM operates the electric grid and wholesale power markets across 13 states and the District of Columbia, including Ohio. Recent capacity auctions have produced historically high prices, driving up electricity costs for manufacturers, other employers and consumers across the region.

Those outcomes reflect deeper problems in PJM’s market design and planning process. The interconnection queue remains paused to new generation applications, preventing developers from responding to high price signals and bringing new supply online. At the same time, prolonged interconnection studies and inflated load forecasts have distorted the market, creating an artificial shortage that forces customers to absorb billions of dollars in unnecessary costs.

OMA energy engineers will analyze the latest auction results and publish a memo with key takeaways so members can better understand how the outcomes affect electricity bills and market conditions in Ohio.

Ongoing advocacy is focused on urging PJM leadership and regulators to address interconnection backlogs and reform market rules to support timely investment in new generation and reliable, affordable power for Ohio manufacturers. 12/18/2025

The Ohio Manufacturers’ Association Energy Group (OMAEG) recently argued before the Ohio Supreme Court against Public Utilities Commission of Ohio decisions approving hundreds of millions of dollars in coal plant subsidies charged to customers. In one case, OMAEG challenged the PUCO’s approval of $115 million collected from Ohio ratepayers to support two aging, uneconomic coal plants, including one located in Indiana. OMAEG argued the decision was unlawful and unreasonable, citing improper exclusion of evidence and a failure to determine whether utilities acted prudently in continuing to operate the plants.

The Court also heard arguments on a separate PUCO order allowing AEP Ohio to recover more than $74.5 million for similar subsidies. OMAEG urged the Court to overturn the order and require refunds to customers or, alternatively, order a new independent audit. The cases underscore the Ohio Manufacturers’ Association ongoing efforts to protect manufacturers and other customers from unjustified energy costs. 12/15/2025

PJM capacity prices have spiked in back-to-back auctions, prompting new concern among consumers about future energy costs. Ohio Manufacturers’ Association (OMA) energy engineers reviewed the latest auction results and released a memo outlining the key drivers behind the price jump and the steps PJM is taking to fix problems in its market.

The analysis points to several factors behind the surge in prices: PJM continues to discount generation that is available on paper, the region saw a four-year pause in new generator interconnection applications, and utilities submitted load forecasts that appear unrealistically high.

The next capacity auction, for the 2027-28 delivery year, is scheduled for this month, with results set for release on Wednesday, Dec. 17. OMA will track the outcome and its impact on member energy bills. 12/10/2025

DriveOhio on Dec. 2 opened a request for proposals to receive applications for federal NEVI grant funding to support the installation of Level 3 electric-vehicle fast chargers in Ohio. Manufacturers may apply to install Level 3 fast chargers at their facilities if the chargers are available to the public during normal business hours.

The grants can cover up to 80% of capital costs. A typical station includes four ports with peak power demand between 400 and 600 kilowatts and can cost about $1 million to install, assuming minimal infrastructure upgrades. DriveOhio is seeking portfolios of at least four shovel-ready, turnkey sites per application.

The RFP is open through Feb. 5, 2026, and awards are expected in April 2026. An informational webinar is available, and manufacturers may contact the Ohio Manufacturers’ Association energy engineer, Go Sustainable Energy, for assistance. Requirements and key details are outlined here. 12/2/2025

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