Energy Management

OMA Energy Committee Hears From PJM Official

This week, the OMA Energy Committee met virtually for its Q3 meeting. Members heard from Asim Haque, former chair of the Public Utilities Commission of Ohio (PUCO) and current vice president of state and member services at PJM — the regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts of 13 states, including all of Ohio.

Haque’s presentation provided PJM’s perspective on the RTO’s minimum offer price rule (MOPR) proposal, which would allow certain state-subsidized generation to participate in capacity auctions. The proposal has drawn criticism from the PUCO, as well as Ohio lawmakers. Haque predicted federal regulators would approve the plan.

The meeting also included a natural gas market trends report from Columbia Gas of Ohio and electricity market trends report from Scioto Energy, both OMA Connections Partners. 9/9/2021

Infographic: Each State’s Electricity Generation Mix

Using 2020 data from the U.S. Energy Information Administration, Visual Capitalist has published this infographic highlighting sources of electricity generation in each state. Ohio’s generation mix last year was comprised of natural gas (43.5%), coal (33.1%), nuclear (15.0%), and a combination of renewables and oil. 9/1/2021

Ohio Senate Leaders to FERC: Reject Subsidies in Generation Marketplace

This week, Ohio Senate President Matt Huffman (R-Lima) and Senate Energy and Public Utilities Committee Chair Rob McColley (R-Napoleon) wrote members of the Federal Energy Regulatory Commission (FERC), urging the agency to reject a proposal that would soften current restrictions preventing subsidized power plants from competing against non-subsidized plants.

The OMA has championed fair competition within the electric generation marketplace. The issue has been especially contentious following the passage of House Bill 6, which created nuclear generation subsidies (later banned under FERC rules).

The OMA Energy Committee will dive deeper into this topic next week at its Sept. 9 meeting. Register here. 9/2/2021

PUCO Investigation Into FirstEnergy’s HB 6 Spending Turns One Year Old

Gongwer News Service this week examined the ongoing investigation by the Public Utilities Commission of Ohio (PUCO) into FirstEnergy’s charitable spending in the House Bill 6 scandal. According to Gongwer, the PUCO wants to “expeditiously” move forward with its one-year-old review, which is the first of four investigations into FirstEnergy’s efforts to ensure passage and implementation of HB 6. 9/1/2021

Ohio, Pennsylvania Protest PJM’s Changes Addressing Subsidized Generation

Ohio and Pennsylvania last week criticized PJM Interconnection‘s proposed update of the minimum offer price rule (MOPR), which aims to ensure that all electricity-generating resources in a region are offered into the wholesale capacity market based on their cost of doing business — not based on cost advantages due to subsidies.

Under PJM’s new proposal, state-subsidized generation would not be subject to MOPR for reasons such as “environmental attributes” or “economic development.”

As reported by Hannah News Service, Ohio and Pennsylvania officials argue their generation is market based — unlike some other states in PJM’s jurisdiction — and that the proposal to exempt renewables and other subsidized energy “unjustly transfers the consequences of a particular state’s policy preference(s) to all states and consumers within the PJM region.” 8/24/2021

Energy Efficiency Legislation Introduced at Statehouse

Legislation (House Bill 389) has been introduced to create new, utility-run energy efficiency programs. The bill comes after the legislature spent the past several years trying to eliminate such programs, and did so successfully in 2019 via the scandal-tainted House Bill 6.

Sponsored by Reps. David Leland (D-Columbus) and Bill Seitz (R-Cincinnati), HB 389 would allow electric distribution utilities to implement “energy waste reduction” programs, which would be targeted at residential consumers. Individuals who did not want to participate would be required to opt out. Commercial and industrial users would be excluded. 8/16/2021

DOE: Solar Could Generate 40% of U.S. Power by 2035

The Biden administration and the U.S. Department of Energy (DOE) this week released a memo on solar energy research, deployment, and workforce priorities. According to the DOE document, solar generation “could supply more than 40% of U.S. electricity by 2035 if Congress implements clean energy policies, such as tax credits for solar farms and manufacturing facilities.” Solar generation currently produces around 3% of the U.S. electricity supply. 8/18/2021

OMA Energy Committee Will Meet Sept. 9

All OMA members are welcome to register for the Sept. 9 OMA Energy Committee meeting, which will have both virtual and in-person (at the OMA offices) options.

There has been much activity in the energy space that we’ll cover along with our popular gas market trends report by Columbia Gas of Ohio and electricity market trends report by Scioto Energy.

In-depth reports by OMA staff, counsel, and technical experts help you manage energy and save money. 8/12/2021

Documents: Randazzo Was Working for FirstEnergy

This week, Cleveland.com reported on the release of new documents that show Sam Randazzo — the longtime utilities lawyer and former chair of the Public Utilities Commission of Ohio (PUCO) — six years ago received “a huge personal windfall from FirstEnergy in exchange for what the company has said was his agreement to change sides on a key state regulatory move” to effectively bail out less profitable power plants by imposing extra charges on ratepayers.

According to The Plain Dealer, FirstEnergy more than quadrupled Randazzo’s contract in 2015 — increasing it from $2.5 million to $11.2 million.

Last month, FirstEnergy admitted attempting to bribe Randazzo, who has not been charged and has denied any wrongdoing. Stay tuned for further developments. 8/5/2021

Randazzo, Former FirstEnergy Execs Added as Defendants in Yost’s HB 6 Lawsuit

Ohio Attorney General Dave Yost this week expanded his House Bill 6 racketeering lawsuit to include new defendants and additional factual allegations based on recent filings by the U.S. Department of Justice in its criminal case. Yost’s new filing added the following defendants:

• Chuck Jones, former CEO of FirstEnergy;
• Michael Dowling, former senior vice president for FirstEnergy;
• Former Public Utility Commission of Ohio (PUCO) Chairman Sam Randazzo; and
• Several entities associated with Randazzo, including the now-dissolved IEU-Ohio Administration Co., LLC.

Yost wants Randazzo to return a $4.3 million FirstEnergy payment the company admitted was a bribe, as well as his public salary while serving as PUCO chair.

Yost’s press release states: “As layers of the corrupt enterprise continue to be pried apart, it became clear that Jones, Dowling, and Randazzo were significant players in what one of the participants labeled ‘an unholy alliance’ … engaged in extortion, money laundering, coercion, intimidation and an attempted cover-up by a politically-connected group trying to enrich themselves.” 8/5/2021