Energy Management

AP Highlights Effort to Repeal HB 6 Coal Plant Subsidy

The AP has spotlighted efforts in the Ohio House and Senate to repeal a House Bill 6-related subsidy for two unprofitable Cold War-era coal plants. The AP story points to OMA research that shows the plants lost $1.3 billion from 2012 through 2019 and continue to lose money.

The subsidy for the Ohio Valley Electric Corporation (OVEC) plants — one of multiple reasons the OMA opposed HB 6 — “has cost Ohio customers more than $340 million thus far and leave them on the hook for hundreds of millions more.”

Meanwhile, the House Public Utilities Committee this week held its second hearing on House Bill 351 — the House version of the OVEC subsidy repeal. Kim Bojko, the OMA’s energy counsel, offered proponent testimony. (See Kim’s testimony beginning at the 1:07:30 mark, as well as this story by Gongwer News Service.) 9/29/2021

Analysis: OVEC Costs Double for Customers

A new analysis by the OMA’s technical consultants at RunnerStone describes how customers’ costs to subsidize two inefficient, Cold War-era coal power plants (including one in Indiana) have doubled in recent years.

The memo also examines inconsistencies expressed by OVEC and its consortium of energy company owners regarding the need for the subsidy. The OVEC subsidy, which is directly tied to the scandal-ridden House Bill 6, has been consistently opposed by the OMA due to the growing burden it has placed on customers. This new research confirms manufacturers’ concerns. 9/30/2021

Report: Energy Crunch in China, Europe Could Impact U.S. Manufacturers, Supply Chains

Energy crises in Europe and China could impact economic forecasts, supply chains, and beyond, according to reports. Axios notes that Europe “has for weeks been facing sky-high natural gas and power prices,” while China “is facing electricity shortages that are hobbling factories.”

Reuters published this analysis of China’s electricity crunch, which has been triggered by a “shortage of coal supplies, toughening emissions standards, and strong demand from manufacturers.” 9/29/2021

More Hearings Held on Bills to Undo HB 6 Provisions

This week, the Ohio Senate Energy and Public Utilities Committee held a second hearing on Senate Bill 89, which would revise renewable energy standards weakened by the scandal-ridden House Bill 6. The committee also held a third hearing on Senate Bill 118, which would revoke $20 million a year in ratepayer-funded solar subsidies.

Gongwer News Service reports the sponsors of both bills are discussing whether they could generate more support by combining their efforts. 9/21/2021

House Hearing on Bill to Repeal Coal Plant Subsidies

The House Public Utilities Committee this week heard opening testimony on House Bill 351, offered by Reps. Laura Lanese (R-Grove City) and Reggie Stoltzfus (R-Minerva) to repeal House Bill 6’s cost recovery extension for a pair of Ohio Valley Electric Corp. coal plants — estimated to cost customers around $700 million by 2030. The bill mirrors Senate Bill 117, co-sponsored by Sens. Mark Romanchuk (R-Mansfield) and Hearcel Craig (D-Columbus). 9/21/2021

Electric Security Plan Repeal Drastically Amended

This week, the House Public Utilities Committee accepted a revised version of House Bill 317, legislation originally introduced to repeal Ohio’s Electric Security Plan (ESP) law.

The latest version of HB 317 would still repeal ESPs, but replace them with a model called the Competitive Power Plan (CPP). On first review, the CPP shares some of the characteristics of the ESP process. The substitute bill would also provide a refund plan for customers if a charge were deemed inappropriate.

The OMA is reviewing all available information on HB 317; more details will be shared soon. Please contact the OMA’s Rob Brundrett with questions or thoughts on the bill. 9/23/2021

OMA Supports Repeal of Remaining Subsidies Authorized by Scandal-Ridden HB 6

This week, the Ohio Senate Energy and Public Utilities Committee heard further testimony on legislation to repeal House Bill 6’s $20 million in annual subsidies for five utility-scale solar projects. Senate Bill 118 is sponsored by Sen. Mark Romanchuk (R-Mansfield), who — along with Sen. Hearcel Craig (D-Columbus) — is also proposing the repeal HB 6’s generous subsidies for two Ohio Valley Electric Corp. coal plants.

During this week’s hearing on HB 118, Kim Bojko, the OMA’s energy counsel, offered proponent testimony. (See this video beginning at the 1:13:15 mark.) She told lawmakers that repeal of the HB 6 solar provision would be “the fastest and fairest way to ensure no new or increased costs are put on consumers.” 9/15/2021

Ohio Resolution Urges Preservation of Rule to Deny State-Subsidized Generation

Last month, Ohio and Pennsylvania regulators criticized PJM Interconnection’s proposed update of its minimum offer price rule (MOPR) — originally created to address unfair advantages caused by state subsidies for electricity generators that participate in the grid operator’s wholesale capacity market. Under PJM’s new proposal, state-subsidized generation would not be subject to MOPR for reasons such as “environmental attributes” or “economic development.”

Now state Sen. Mark Romanchuk (R-Ontario) has offered Senate Resolution 175, urging PJM and the Federal Energy Regulatory Commission (FERC) to preserve the original intent of the MOPR to ensure that electricity customers in states like Ohio aren’t forced to bear increased costs caused by subsidies “associated with other states’ generation resource preferences.” The OMA this week offered its support for SR 175. 9/15/2021

Illinois Clean Energy Bill Has Ramifications for Ohio Manufacturers

Earlier this week, the Illinois General Assembly approved a landmark energy bill that will have ripple effects in Ohio and throughout the PJM power grid territory. The Illinois Manufacturers Association opposed the bill, saying it would result in the largest electricity rate hike in the state’s history.

Among provisions of interest to Ohio manufacturers are restrictions that will phase out the Prairie State Energy Campus, which supplies many of Ohio’s municipal-owned power companies. Prairie State costs have hiked customer power bills in recent years. A new report suggests customers may be better off with the plant closed; however, Ohio municipalities will continue to be obligated to service bonds even if the plant closes.

Similar to Ohio’s House Bill 6, the Illinois legislation provides for nearly $700 million in subsidies over five years to three nuclear power plants that operate within the PJM market. 9/16/2021

Ohio’s Natural Gas Advantage Keeps Growing

Dry natural gas production from shale formations in the Appalachian Basin — which spans Pennsylvania, West Virginia, and Ohio — recently set new record highs, according to the U.S. Energy Information Administration.

On its own, the Appalachian Basin would have been the third-largest natural gas producer in the world the first half of 2021, behind Russia and the rest of the U.S. 9/8/2021