Energy Management

Energy Prices Take Center Stage in D.C. Political Debate

Inside-the-beltway publication Politico reports that high fuel and heating costs are making some federal officials nervous given the looming 2022 election and Republicans intense criticism of the Biden administration’s energy policy.

The story notes that while “most market analysts see little the president can do to alter the market fundamentals and drive costs down in the short term,” some Democrats “are flirting with some new ways to alleviate the crunch” — including restricting natural gas exports. 11/18/2021

OMA Members Updated on Energy Prices, PUCO, and Cybersecurity

This week, the OMA Energy Committee held its Q4 meeting. Highlights included an update from Jenifer French, chair of the Public Utilities Commission of Ohio (PUCO), who said she’s working to reform the commission’s culture.

Christian Kopacsi with OMA Connections Partner DT Midstream briefed members on cybersecurity preparation. Susanne Buckley of Scioto Energy provided an update on trends in the electricity market; Darin King of Columbia Gas of Ohio analyzed the natural gas market.

Make sure you are subscribed to the OMA Energy Community to receive future meeting invitations and committee materials. 11/11/2021

Report: Randazzo Lobbied to Save FirstEnergy Millions

Text messages obtained by the news media show former PUCO Chair Sam Randazzo — while on the state’s payroll and serving as Ohio’s top utility regulator — appears to have been quietly urging lawmakers to enact a provision that saved FirstEnergy tens of millions of dollars.

In 2019, as part of the state budget — and against the advice of the OMA — lawmakers reworked the “significantly excessive earnings test” (SEET) formula. This action protected utilities structured like FirstEnergy from issuing PUCO-ordered consumer refunds.

A June 2019 text message provided to The Ohio Capital Journal shows a FirstEnergy executive told the company’s then-CEO Chuck Jones: “Senate kept SEET in — thanks to … Sam Randazzo.” After this latest revelation, the Office of the Ohio Consumers’ Counsel has renewed its call for an audit to look for possible corporate separation violations between FirstEnergy and its affiliates. 11/9/2021

Judge OKs Class Action Lawsuit for HB 6 Surcharges

A federal judge has ruled Ohio ratepayers who claim they were wrongly charged on their electricity bills to bail out the state’s nuclear power plants can sue FirstEnergy as a class.

Reuters reports the monthly surcharge authorized by the scandal-tainted House Bill 6 prompted an Ohio resident to file a civil lawsuit against the utility. The suit ties FirstEnergy to the “$60 million bribe allegedly paid to (former Ohio House Speaker) Larry Householder and his associates.” 11/11/2021

Average U.S. Gasoline Price Flirts With $3.50

U.S. gasoline prices have risen to a new seven-year high, according to new data from AAA. As of Nov. 11, the U.S. average price for a gallon of regular gasoline was $3.42. In Ohio, the average was $3.28 a gallon.

This week, eleven of the 50 Democratic U.S. senators, including Sherrod Brown (D-OH), urged the Biden administration to “consider all tools available” to lower gasoline prices. 11/11/2021

Ohio Members of Congress Raise Concerns Over Fate of Enbridge Pipeline

Members of Ohio’s congressional delegation are warning the Biden administration that shutting down Enbridge Line 5 — a pipeline that delivers oil and gas from Canada to the upper Midwest — could cost tens of thousands of jobs, spike energy prices, and jeopardize the region’s economy.

Michigan Gov. Gretchen Whitmer has tried to shut down the pipeline, while the pipeline’s owner has sued to keep it open. The OMA is on record in support of the pipeline remaining operational. 11/10/2021

Settlement Agreement Calls for FirstEnergy to Refund Customers $306 Million

A unanimous settlement agreement filed this week with the Public Utilities Commission of Ohio (PUCO) requires FirstEnergy’s three Ohio utilities to refund customers $306 million, including $96 million beginning 30 days after PUCO approval and $80 million next year.

The settlement agreement resolves 10 pending regulatory proceedings related to 2017-2020 annual earnings tests, a 4-year review of FirstEnergy’s electric security plan, and 2014-2018 energy efficiency audits.

The unopposed settlement agreement is supported by the OMA Energy Group among a number of other parties.

Under the agreement, FirstEnergy will refund $96 million (which includes interest) related to the utilities’ 2017-2019 annual earnings tests shortly after PUCO approval. Of that, nonresidential customers will be allocated approximately $45.3 million, dispersed as a $2.60 per megawatt hour credit over a six-month period. Additionally, FirstEnergy will refund $210 million as bill credits over a four-year period (2022-2025). The settlement agreement is subject to review and approval from PUCO commissioners.11/2/2021

OMA Is Supporting Party to PUCO Settlement to Refund Customers

In response to the PUCO-announced settlement agreement calling for FirstEnergy’s Ohio utilities to refund customers $306 million, OMA President Ryan Augsburger issued the following statement.

“The Ohio Manufacturers’ Association is proud to be a party to the unanimous settlement agreement filed with the PUCO on November 1, 2021. The settlement is a huge win for residential and business customers who have been saddled with above-market charges for years as a result of FirstEnergy’s aggressive lobbying for new charges assessed to customers’ bills through electric security plans, the interpretation of the significantly excessive earning test (SEET), and the propriety of a subsidy that the OMA was instrumental in appealing that was later found to be improper by the Supreme Court of Ohio. Sadly, in Ohio, customers rarely see refunds from utilities, so this settlement is a welcome step in the right direction. We urge the PUCO to approve the settlement.” 11/2/2021

Democratic Gubernatorial Hopeful Pledges to Fire PUCO to Cleanse Corruption

Cincinnati Mayor John Cranley, a Democratic candidate for governor, held a press conference this week to announce his plans to fire Ohio’s entire utility regulatory board if elected to cleanse cap square from FirstEnergy and the HB 6 corruption scandal. He would vet replacements, screening for conflicts of interest and relevant experience. 11/4/2021

Register Now for Nov. 11 OMA Energy Committee – Zoom or In Person Options

The last scheduled OMA Energy Committee meeting of the year is Thursday, November 11. In addition to a Zoom option, there is an option to attend in person at the OMA offices followed by a networking lunch. Agenda items include:

• Special guest PUCO Chair Jenifer French;
• A presentation on energy infrastructure and cybersecurity by OMA Connections Partner DT Midstream;
• Winter is coming on and with natural gas prices rising, our experts will break down the outlook for both gas and electricity pricing.

All members are welcome. Register here. 11/4/2021