Energy Management

Lame Duck Legislature Considers Romanchuk Repeal of HB 6

On Dec. 9, the Ohio Senate Energy Committee held a second hearing on House Bill 772 introduced by Rep. Mark Romanchuk. OMA member Brad Belden — president of The Belden Brick Company, Canton, and chair of the OMA Energy Committee — appeared in-person at the Statehouse to present OMA testimony in support of HB 772. (His testimony begins at the 31:50 mark in this video.)

Belden cited many reasons why HB 772 is preferable to other legislation that would either repeal HB 6 or delay its policies. He told senators that “there is no need for the subsidy – not now, and not in a year from now.”

Since the post-election session has been extended for at least another week, it’s not too late to contact your state legislators and tell them to pass HB 772 to protect customers and markets. 12/10/2020

New Bill Would Delay Collection of HB 6 Nuclear Subsidies; Falls Short of OMA-Backed HB 772

As the lame duck session kicked off this week, Ohio House Republicans introduced new legislation to delay the collection of House Bill 6’s nuclear subsidies for one year. Sponsored by Rep. Jim Hoops (R-Norwalk), chair of the House Select Committee on Energy Policy and Oversight, House Bill 798 would delay the start of the $170 million in nuclear and solar subsidies by one year to Jan. 1, 2022.

While the OMA appreciates that lawmakers have recognized HB 6’s flaws, HB 798 does not go far enough to protect customers or markets — as highlighted in this analysis. Nor does HB 798 adequately address the three main reasons why lawmakers should repeal and reform HB 6 provisions yet this year.

To ensure a more competitive energy policy, the OMA continues to call for passage of House Bill 772, legislation by Rep. Mark Romanchuk (R-Ontario). HB 772 would repeal and reform HB 6’s harmful provisions, saving customers an estimated $3 billion over the next decade. With just days remaining in the 133rd General Assembly, it’s important that your state representatives hear from you regarding this issue. 12/3/2020

OMA Energy Committee Conducts Q4 Meeting

This week, the OMA Energy Committee met virtually for its final meeting of 2020. Members were briefed on the latest policy developments surrounding House Bill 6 and the federal investigation of activities tied to the bill’s enactment.

Guest presenters included the American Chemistry Council’s Ross Eisenberg, who highlighted possible changes to federal energy policy and regulations under the Biden administration; Terry Lewandowski of Nutrien, who discussed FERC intervention governing interstate pipeline charges; Susanne Buckley of Scioto Energy, who reviewed electricity market trends; and Darin King of NiSource/Columbia Gas of Ohio, who reviewed natural gas market trends.

The OMA will soon publish the 2021 meeting dates for all policy committees. Stay tuned. 12/2/2020

Search Underway for Next PUCO Chair

The search for the next head of the Public Utilities Commission of Ohio (PUCO) is underway following last month’s resignation of Sam Randazzo. The 12-member PUCO Nominating Council this week started the application process to fill Randazzo’s unexpired term. Candidates have until 5 p.m. Thursday, Dec. 10 to apply.

The council will conduct interviews Dec. 21 and send its recommendations to Gov. Mike DeWine, who will have until Jan. 20 to name Randazzo’s replacement. Council members include OMA energy counsel Kim Bojko of Carpenter Lipps & Leland LLP. 12/1/2020

Elon Musk: Electric Cars Will Double Global Electricity Demand

Elon Musk this week said electric cars will eventually double global electricity demand, increasing the need to expand power generation and storage. The Tesla CEO told an interviewer, “It will take another 20 years for cars to be fully electric. It is like with phones, you cannot replace them all at once,” adding that around 5% of vehicles are replaced every year. 12/2/2020

Randazzo Resigns From PUCO As HB 6 Scandal Adds Another Chapter

Last Friday’s (Nov. 20) resignation of Public Utilities Commission of Ohio (PUCO) Chair Sam Randazzo topped off an active week as the House Bill 6 scandal continues to unfold.

Randazzo’s resignation came less than a week after FBI agents searched his home, and less than 24 hours after FirstEnergy disclosed that its former CEO and two other senior executives were fired after it was learned that a $4.3 million payment was made in January 2019 to end a consulting agreement with a company tied to a person who soon after was appointed to regulate Ohio utilities. Randazzo was not named in the disclosure.

PUCO Vice Chair M. Beth Trombold will serve as acting chair, while the PUCO Nominating Council prepares to identify a list of finalists for Randazzo’s permanent replacement. This development will be covered in depth at the upcoming OMA Energy Committee meeting on Dec. 2. 11/23/2020

Testimony Shows Ohio Nukes Profitable Without Subsidies

Recent testimony from Judith Lagano, a senior vice president for independent power producer NRG Energy, reveals the lie behind House Bill 6 subsidies for Ohio’s two nuclear power plants owned by Energy Harbor (formerly FirstEnergy Solutions). Earlier this month, Lagano told Ohio senators the following:

“FirstEnergy told legislators during the HB 6 debate that without a subsidy, its affiliate’s nuclear generation would close because it was unprofitable. That affiliate, FirstEnergy Solutions, filed a Chapter 11 bankruptcy. At the end of that bankruptcy process, the new company, now known as Energy Harbor, has a stronger balance sheet, less debt, and is forecasting robust cash flow and profits. In fact, Energy Harbor has revealed that the company’s profits and cash flow are strong even without the HB 6 subsidies, as depicted in its May 10, 2020, 2020-2022 Financial Outlook.”

Lagano told lawmakers that Energy Harbor had since removed its financial presentations from its public website, but that the company expects to make approximately $515 million in profit this year, $585 million next year, and $645 million in 2022, “even without the approximately $150 million in annual HB 6 nuclear subsidies. … Every dollar of the (roughly) $150 million/year it collects from here on simply fills Energy Harbor’s coffers at the expense of Ohio’s customers.”

More evidence that it’s past time to repeal and reform HB 6. 11/24/2020

Still Time to Tell Lawmakers to Repeal, Reform HB 6

Ohio’s House and Senate leaders say they want to take action on House Bill 6 repeal and/or reform during the current lame duck session. Several bills are under consideration, but only one has been endorsed by the OMA.

Introduced by Rep. Mark Romanchuk (R-Ontario), a manufacturer, House Bill 772 would protect customers and markets by repealing HB 6’s subsidies, as well as the law’s “decoupling” mechanism that benefits FirstEnergy by rewarding it with unearned income from customers. Unlike the pending “straight repeal” bills, HB 772 would not reinstate energy efficiency standards (and rider) or renewable portfolio standards (and rider) that HB 6 repealed and modified. (For more, see this two-page summary.)

If you haven’t yet urged your lawmakers to support HB 772, there’s still time. While the OMA has testified and heavily lobbied in support of HB 772, nothing is more valuable than lawmakers hearing directly from manufacturers in their districts. 11/24/2020

FBI Searches Home of PUCO Chairman; FirstEnergy Filing Sheds Light on Recent Firings

More developments tied to the House Bill 6 scandal unfolded this week as FBI agents searched the Columbus home of Public Utilities Commission of Ohio (PUCO) Chairman Sam Randazzo. No arrests are planned at this time, according to FBI officials, who declined to specify the nature of the search. Randazzo was a no-show at this week’s PUCO meeting.

When asked about the incident, Gov. Mike DeWine said he’s waiting for more information, adding, “I hired him, I think he’s a good person. If there’s evidence to the contrary, we’ll act accordingly.”

Then on Thursday evening, Nov. 19, it was reported that FirstEnergy’s latest filing with the Securities and Exchange Commission says former senior management members were fired after an internal investigation discovered certain executives made a $4 million payment to an entity with ties to an unnamed state regulator. Cleveland.com reports on this breaking development. 11/18/2020

ACTION ALERT: Tell Lawmakers to Repeal, Reform HB 6 Before Lame Duck Session Ends

The OMA encourages members to contact their state lawmakers and urge timely passage of House Bill 772, legislation that would repeal and reform harmful provisions of House Bill 6 — the state’s nuclear subsidy law — in a manner that protects Ohio’s customers and competitive markets.

Email or call your representative and senator by using the OMA Manufacturing Advocacy Center. It provides a sample message that can be personalized. 11/19/2020