Energy Management

Latest Developments on Ohio HB 6 Scandal

In ongoing coverage of Ohio’s House Bill 6 scandal, the non-partisan Ohio Center for Journalism and Energy News Network have published this update.

According to the report, while FirstEnergy wants to move past the scandal, there may be even more FirstEnergy officers who knew about a $4.3 million payment made in late 2018 to former PUCO Chair Sam Randazzo‘s company.

One of the presentations at the Ohio Manufacturers’ Energy Conference (Sept. 8) will address the state’s electric sector corruption and ideas for reform. Register for the conference here. 8/9/2022

Energy Roundup: Energy Policy Gets Political

• Ohio will receive more than $100 million over the next five years to install electric vehicle charging units along roadways, reports say.
• Federal energy policy is capturing the campaign spotlight in Ohio’s U.S. Senate race.
• A trade group says the Manchin-Schumer reconciliation deal in Congress would accelerate coal closures and further undermine grid reliability, according to reports.
• The U.S. emergency oil stockpile has dropped to its lowest level since 1985, falling 469.9 million barrels, according to federal data.

If you haven’t already, it’s time to register for the Ohio Manufacturers’ Energy Conference set for Thursday, Sept. 8 at the Quest Conference Center in Westerville. (Here are the planned sessions. Conference content continues to be updated.) 8/4/2022

FirstEnergy Asks Former CEO to Return $56 Million

FirstEnergy Corp. is asking its former CEO Chuck Jones to return the $56 million it paid him, according to reports. The company — which has admitted to bribing Ohio officials during the legislature’s consideration of the scandal-plagued House Bill 6 — made the repayment demand to Jones last November.

“Investors suing the company have identified Jones as an orchestrator of the bribery operation,” the Ohio Capital Journal reports. Jones was fired in October 2020 as a result of his role in the HB 6 scandal. 7/28/2022

U.S. Becomes World’s Largest LNG Exporter

The U.S. became the world’s largest liquefied natural gas (LNG) exporter during the first half of 2022, according to new data. This as the Industrial Energy Consumers of America has noted that a recent outage at the Freeport LNG export terminal in Texas — and the resulting drop in natural gas pricing — demonstrates a “clear connection” between LNG exports and the inflationary impacts to domestic prices for natural gas and electricity.

Meanwhile, Bloomberg (subscription) reports that electricity prices in Germany and France have surged to record highs due to Russia’s grip on European energy supplies. 7/27/2022

Energy Roundup: Two Years Since Householder Arrest

• It has been two years since FBI agents arrested then-Ohio House Speaker Larry Householder and four others in what prosecutors say is the biggest bribery scheme in state history. The Columbus Dispatch has published this update on the legal proceedings in the House Bill 6 scandal.
• Diesel fuel prices are averaging $5.50 a gallon nationally — up 68% from a year ago — as U.S. refineries are “essentially maxed out,” reports say. (The U.S. has 11 fewer refineries operating today than before the pandemic.)
• A report by Bloomberg says high energy costs — primarily for electricity and natural gas — are forcing U.S. manufacturers to scale back operations.
• From July 2021 to June 2022, the monthly average Henry Hub natural gas spot price nearly doubled, increasing from $3.84 to $7.70. But the Energy Information Administration now says prices will decline to an average of $5.97 in the second half of 2022.
• Energy policy continues to divide the two major political parties. Reports say environmental groups and liberals in Congress are demanding that President Biden declare a “climate emergency,” while U.S. Senate Republicans have introduced a bill to prevent the president from using climate as a basis for a national emergency.

Meanwhile, this infographic shows electric generation in the U.S. has been relatively stable since 2000 despite increases in renewable and distributed sources. China generates nearly twice the amount of electricity produced in the U.S. — and it continues to approve new coal-fired power plants. 7/21/2022

DeWine Administration Supports Hydrogen Efforts

The Ohio Clean Hydrogen Hub Alliance reports that the DeWine-Husted administration is supporting its effort to land the state a share of $8 billion in federal funding to develop a regional hydrogen hub. Lt. Gov. Jon Husted said Ohio’s dynamic manufacturing sector, abundant supply of natural gas, and other key assets “make Ohio ideal for a hub.”

To date, the multi-billion-dollar effort to spur a national hydrogen economy has prompted developers across the country to propose at least two dozen public- and private-sector hydrogen hub initiatives, reports say. 7/21/2022

OMA Energy Group Takes HB 6 Fees Before High Court

On June 12, the Supreme Court of Ohio heard arguments from the OMA Energy Group (OMAEG) in a case challenging the Public Utilities Commission of Ohio’s authority to impose fees to fund a $20 million subsidy created by the scandal-ridden House Bill 6.

As reported by Gongwer News Service, Kim Bojko, the OMA’s energy counsel, told justices that the PUCO’s errors in imposing the solar generation fund rider have resulted in excessive monthly charges on Ohio customers since Nov. 1, 2021 — and that they will continue through 2027 unless the court intervenes. The court’s decision is expected later this year. 7/13/2022

Energy Roundup: PUCO Reviews AEP Ohio’s Outages

• On June 13, top executives for AEP Ohio and PJM Interconnection appeared before the Public Utilities Commission of Ohio to explain the mid-June power outages that affected more than a quarter of a million residents. (See this video starting at the 16:00 mark.) PUCO Chair Jenifer French has directed staff to prepare a report on the events. Customers can weigh in at 1-800-686-7826 or via the PUCO website.
• Surging energy prices fueled the 9.1% jump in U.S. consumer inflation last month, soaring more than 41% from June 2021 to June 2022. Gasoline prices rose 59.9% — the largest 12-month increase since March 1980. Electricity prices increased more than 13% over the last 12 months, and natural gas prices rose 38.4%, the largest 12-month jump since October 2005.
• Republicans in Congress say the U.S. EPA could be threatening electric grid reliability by forcing power plants to shut down, according to reports.

Meanwhile, domestic coal prices have reached record territory, driven by the European Union’s impending ban on Russian coal. Approximately 24% of the electricity used in Ohio comes from coal, according to the PUCO. 7/14/2022

OMA, NAM Urge Biden Administration to Take Steps to Ensure Reliable Energy Supplies

The OMA, along with the National Association of Manufacturers and other state organizations, is urging the Biden administration to take immediate steps to ensure affordable, reliable electricity for manufacturers to remain competitive.

The groups have also called on the administration to “streamline permitting processes for all energy sources, as well as critical minerals, materials, and chemicals,” while “committing to on- and offshore energy production and mining on federal lands and waters.” 7/5/2022

Study: Ohio’s Energy Costs Near Average

Personal finance website WalletHub has released its annual report on the most and least expensive states for energy. The comparison considers residential costs for electricity, natural gas, motor fuel, and home heating oil. The study finds that Washington, D.C. and New Mexico have the lowest overall energy prices, while Wyoming and Alaska have the highest. Ohio posted the 23rd most expensive energy costs overall. 7/7/2022