Energy Management

Clean Energy Incentives for Manufacturers

OMA Connections Partner RSM has published this summary of the Inflation Reduction Act’s clean energy incentives for manufacturers. RSM notes that while many questions remain on the implementation of these new incentives, the U.S. Treasury Department is drafting guidance. 11/30/2022

Energy Roundup: A Look at Electricity Generated by Renewables in Every State

• This infographic published by Visual Capitalist shows how much of each state’s annual electricity generation comes from renewable sources.
• Republican leaders in the U.S. House intend to make energy a key focus of their 2023 agenda, according to reports.
• As utilities across the U.S. spend billions of dollars on transmission projects, support is growing for independent monitoring.
• Working natural gas stocks reached 3,644 billion cubic feet (Bcf) as of Nov. 11, nearly matching the five-year average, according to the Energy Information Administration.
• For the second straight week, the U.S. average gasoline price has declined, falling to $3.64 per gallon as of Nov. 21, while the average diesel price is $5.28 per gallon, according to reports.
• Since the invasion of Ukraine, China’s annual spending on Russian energy imports has gone from $35 billion a year ago to $60 billion as of last month, Bloomberg reports.
• In the Czech Republic, coal is making a major comeback due to high electricity prices, while global emissions associated with coal burning are on track to hit a new record.

Finally, if you haven’t already, you can still register for the OMA’s Nov. 29 Energy Committee meeting. 11/22/2022

Energy Roundup: Diesel Prices Expected to Climb Further

• Diesel costs are up more than 40% from a year ago — and a new International Energy Agency report forecasts further price pressure.
• U.S. distillate stocks, including diesel and heating oil, have fallen to their lowest levels since 1951.
• The average U.S. gasoline price for Thanksgiving is expected to be at its highest level ever this year.
• Large parts of U.S. are at risk of outages during extreme weather this winter, according to North America’s grid reliability watchdog.
• OMA Connections Partner Clark Schaefer Hackett has published this insight into the federal government’s expanded solar energy tax incentives.
• The federal government’s electric vehicle tax credit could overwhelm manufacturers and cause them to give up on the incentive, an EV manufacturers’ group says.
• The IRS is seeking public comment on energy-related incentives, according to OMA Connections Partner RSM.
• U.S. Senate Energy and Natural Resources Committee Chairman Joe Manchin (D-W.Va.) won’t hold a confirmation hearing for FERC Chairman Richard Glick, reports say.

If you haven’t already, it’s not too late to register for the OMA’s Nov. 29 Energy Committee meeting. Register now. 11/17/2022

Analysis: Funding Ohio’s EV Infrastructure

Runnerstone — the OMA’s energy engineering team — has examined Senate Bill 307, legislation that would subsidize monopoly utility companies to build a network of electric vehicle charging stations while passing the costs onto electric customers, whether or not they use the stations.

SB 307 proposes multiple contentious policies. The OMA believes there is a better way to expand EV infrastructure — and the association is recommending solutions to help policymakers get it right. Read the memo. 11/16/2022

Action Alert: Oppose Electric Ratemaking Overhaul

The OMA has issued an action alert urging members to oppose House Bill 317, which would increase utility costs for manufacturers by making changes to Ohio’s electric ratemaking mechanism while failing to protect ratepayers from undefined transmission costs.

This updated two-page analysis examines the bill’s flaws. Take action by using the OMA’s online tool to contact your state lawmakers and let them know your company opposes HB 317.

The OMA’s Nov. 29 Energy Committee meeting will provide updates on all post-election energy legislation and key developments. Members may attend virtually or in person. Register now. 11/10/2022

OMAEG Works to Reduce Proposed Gas Price Hike

The OMA Energy Group, Columbia Gas of Ohio, and others recently reached a preliminary agreement in Columbia’s rate case, resulting in significant benefits for manufacturers. The agreement now goes before the PUCO for its consideration.

Columbia had sought to increase its rates by $221.4 million (more than 27%) over current rates. Instead, the settlement provides for a significantly reduced increase of $68.2 million (less than 8%). Roughly 94% of the rate increase will be allocated mainly to residential customers. The settlement caps the amount Columbia can charge customers through capital investment riders. 11/7/2022

Energy Roundup: OMA Calls for More Transmission Competition

• The OMA has co-signed a letter urging U.S. Sen. Joe Manchin (D-W.Va.) to include transmission competition in any federal permitting reform passed by Congress. Read the letter.
• The National Association of Manufacturers says President Joe Biden’s call for a windfall tax on U.S. energy producers is a “dangerous and destructive” idea that could lead to more inflation and reliance on imports.
• U.S. natural gas futures jumped about 7% this week amid expectations that demand will rise once the Freeport LNG export plant in Texas is back online.
• The St. Louis Fed has published this graph, showing an “unprecedented increase in fertilizer prices.”

If you haven’t already, you can register now for the OMA Energy Committee’s Nov. 29 meeting, which will be held virtually and in person at the OMA headquarters in Columbus. 11/3/2022

AEP Receives Another Subpoena Tied to HB 6 Activity

AEP has been hit with a second subpoena from federal regulators regarding the company’s involvement with House Bill 6. The Columbus Dispatch reports AEP contributed $350,000 to a group that has become part of the criminal case against former House Speaker Larry Householder.

In addition to providing customer-funded nuclear generation subsidies — which have since been repealed — the scandal-ridden HB 6 also authorizes major subsidies for two 1950s coal plants (one is in Indiana) owned by a group of power companies, including AEP.

Meanwhile, in a conversation with The Plain Dealer, Gov. Mike DeWine reiterated his support for repealing the coal plant subsidies, although Ohio lawmakers have still not acted on legislation that would do so. 10/31/2022

Clean Energy Conference, Nov. 15-16 in Columbus

If you enjoyed the OMA’s energy conference held last month — and you need a deeper dive on clean energy resources — check out this two-day conference, set for Nov. 15-16 in Columbus. Hosted by the Energy Coalition of Ohio, the event is specifically geared for small and mid-sized businesses.

Stay tuned for more manufacturer-driven programming on energy and sustainability coming from the OMA. And be sure to register for the Nov. 29 meeting of the OMA Energy Committee. 10/27/2022

Energy Roundup: U.S. Oil Reserve Drops to 1984 Levels

• Several lesser-known FirstEnergy executives are defendants in two lawsuits filed by company shareholders over the House Bill 6 scandal, according to a report by The Plain Dealer.
• A Pennsylvania newspaper has published this article examining the fight over wind-energy generation in rural Ohio.
• A solar power project in Allen and Auglaize counties has been rejected by state officials due to opposition from local governments.
• The U.S. has just 25 days of diesel supply, the lowest since 2008, reports say.
• The U.S. Strategic Petroleum Reserve has fallen to its lowest inventory level since June 1984, as illustrated by this graphic.
• Even before winter begins, heating oil is being rationed in the Northeast U.S., writes Bloomberg (subscription).
• The energy crisis poses an existential threat to Europe’s manufacturing sector, some analysists say.

Meanwhile, large renewable energy developers are taking issue with parts of federal regulators’ plan to reform the grid interconnection process, according to media reports. 10/27/2022