Energy Management

Comparing Current Energy Inflation to Past Price Shocks

Visual Capitalist reports that the energy price spike of 2022 is the second highest since the price shocks of the 1970s. The website has published this infographic, which illustrates energy (and food) inflation over the past five decades. The site notes that the price of oil influences as much as 64% of food price movements. 9/7/2022

U.S. Sets Daily Record for Gas-fired Electricity Generation

U.S. electricity generated by natural gas-fired power plants hit a record 6.37 million megawatt hours on July 21, 2022, according to the U.S. Energy Information Administration. Despite high prices, demand for natural gas to generate electricity remains strong due to reduced coal-fired generation and recently added gas-fired capacity.

The Ohio Manufacturers’ Energy Conference, set for Sept. 8 in Westerville, will provide expert analysis regarding the electric and natural gas markets, Ohio’s natural gas assets, controlling costs with energy efficiency, and much more. You still have time to register. (Here’s the full agenda.) 8/31/2022

Not Too Late to Register for OMA Energy Conference

Seeking ways to counter soaring energy costs? Want to explore Ohio’s role in energy production? Need policy updates? The Ohio Manufacturers’ Energy Conference, set for Sept. 8 in Westerville, has it all.

See the agenda by clicking here. Then check out additional details and register via the conference webpage, or call 800-662-4463. Registration deadline is Wednesday, Aug. 31, so don’t wait. 8/25/2022

PUCO Pauses HB 6 Investigations

State regulators have paused four investigations tied to FirstEnergy’s 2019 lobbying to advance the scandal-plagued House Bill 6. Public Utilities Commission of Ohio Chair Jenifer French says this is “a temporary stay” and the PUCO will continue with its investigations “when it is appropriate to do so.”

The stay was recently requested by U.S. Attorney Kenneth Parker who wrote that the PUCO’s cases could directly interfere with or impede the ongoing federal investigation. Here’s more on this development as reported by Gongwer News Service. 8/24/2022

Michigan Suffers Setback in Its Effort to Close Line 5

Here’s another twist in the legal battle over the Enbridge Line 5 pipeline, initiated by leaders in that state up north. A federal judge has refused to remand the case to a Michigan county court. Fortunately, this is a setback for Michigan’s efforts to shut down the pipeline, reports say.

If Line 5 were shut down, Ohio would bear the brunt of an estimated $20.8 billion in economic losses. The OMA is on record in support of the pipeline remaining operational. 8/25/2022

Report: EV Battery Belt Is Reshaping U.S. Heartland

Reports say the so-called Inflation Reduction Act is expected to provide a major boost for what is being called the nation’s “Battery Belt.” This swath of the U.S. includes Ohio, which has both electric vehicle and battery manufacturing facilities. Under the new law, the federal government will provide a tax credit for each U.S.-produced battery cell — worth about 35% of the current cost of production. 8/22/2022

At a Glance: America’s Natural Gas Production

This infographic published by Visual Capitalist illustrates America’s dominance in natural gas production, which is vital to manufacturing. Ohio is a key gas producer; the state’s natural gas output increased more than 30-fold from 2010 to 2020.

The Ohio Manufacturers’ Energy Conference, set for Sept. 8 in Westerville, will feature expert insight into Ohio’s natural gas assets as the Marcellus and Utica shale plays continue to grow in importance due to global supply disruptions. 8/23/2022

Natural Gas Markets Gone Wild

With natural gas futures recently exceeding $9.30 — a 14-year high — Susanne Buckley, managing partner of OMA Connections Partner Scioto Energy, says not even a recession would likely bring down prices. She pointed to recent analysis by Constellation that shows energy demand fell only 2% on average during the past 21 recessions.

Register now to attend the Ohio Manufacturers’ Energy Conference on Sept. 8 to learn risk mitigation strategies in the “Electric and Gas Markets Gone Wild” session. (See the full lineup of conference sessions.) 8/15/2022

Energy Roundup: PUCO Forecasts More Electricity Use

• The 2022 annual report from the Public Utilities Commission of Ohio says the state used 139.9 million MWh of electricity in 2020 and is expected to consume 148.4 million MWh in 2040.
• Newly introduced Ohio legislation (House Bill 685) would provide incentives for natural gas infrastructure buildout in unreached areas of the state.
• Gov. Mike DeWine has downplayed recently released text messages in which former FirstEnergy officials said Lt. Gov. Jon Husted advocated for nuclear subsidies in House Bill 6 in 2019.
• Federal prosecutors overseeing the HB 6 bribery case want the PUCO to pause its interviews into whether FirstEnergy billed customers for lobbying related to the scandal since they “may directly interfere with or impede” the ongoing federal investigation.
• Since 2020, Ohioans have paid $173 million to subsidize three Ohio utility companies’ investments in two coal-fired power plants, thanks in part to HB 6. (A small credit for ratepayers went into effect in July.)
• Groups representing Ohio’s oil and gas sector are expressing disappointment after President Joe Biden signed the so-called Inflation Reduction Act, saying it will impose undue burdens on domestic oil and gas producers.
• The federal reconciliation law gives automakers some certainty due to its 10-year consumer tax credit for electric vehicle purchases. But reports say manufacturers worry about the credit’s component sourcing and manufacturing requirements.

Meanwhile, the average gasoline price in Ohio has fallen dramatically in the past several weeks to roughly $3.70 per gallon at last check. This heat map shows prices nationwide. 8/18/2022

Reconciliation Bill’s $20B Tax Hike on Fossil Fuels

Energy policy is a centerpiece of the federal budget reconciliation bill recently approved by the U.S. Senate on a party-line vote. (See related stories in this Leadership Briefing.)

President Joe Biden has said the legislation makes “the largest investment ever in combatting the existential crisis of climate change” and “lowers families’ energy costs by hundreds of dollars each year.”

Free-market organizations tell a different story. In its list of tax increases contained in the reconciliation plan, Americans for Tax Reform says the bill imposes a $6.5 billion tax on natural gas; a $12 billion tax on crude oil; and a $1.2 billion tax on coal.

The OMA and nearly 60 other organizations that oppose the new taxes sent this letter to Speaker Pelosi and Minority Leader Kevin McCarthy itemizing concerns with the Inflation Reduction Act. 8/8/2022