News and Analysis
OMA Member, Cooper Tire & Rubber, Testifies Against FirstEnergy Proposal
July 1, 2016The OMA Energy Group and a diverse array of interests filed testimony in opposition to FirstEnergy’s bailout proposal pending before the PUCO.
OMA Energy Group witness Tom Lause, VP of Treasury & Tax, Cooper Tire & Rubber Company, characterized the proposal as a corporate bailout and explained that it will have the same negative impact on customers as the original rider proposal. He further explained that the corporate bailout requested by FirstEnergy will make businesses less competitive in the global economy and will thwart their ability to take advantage of low market prices offered by competitive suppliers.
Discovery in the case is ongoing.
Supreme Court of Ohio Reverses PUCO Approval of DP&L Rider
July 1, 2016This week, in a one-sentence decision, the Supreme Court of Ohio reversed the PUCO’s approval of Dayton Power and Light’s (DP&L) Service Stability Rider (SSR).
DP&L had claimed that the SSR was necessary to make up for lost revenue due to increased customer switching, declining wholesale prices, and declining capacity prices. But opponents argued that the SSR was impermissible because it enabled DP&L to collect transition revenue or its equivalent.
The court did not provide a detailed rationale to justify its reversal of the PUCO; instead, the court simply cited to its decision involving AEP from a few months ago where it found that the PUCO erred in authorizing AEP to collect the equivalent of transition revenue through a charge that was similar to DP&L’s SSR.
It is estimated that DP&L has so far collected about $250 million through the SSR and that another $80 million remains to be collected.
Plant Tour of Dannon Company, Inc., Minster – You’re Invited
July 1, 2016The OMA Energy Efficiency Peer Network (EEPN) has scheduled its next plant tour for Wednesday, July 20 at the Dannon Company, Inc. 216 Southgate Dr., Minster, Ohio 45865.
The tour will focus on energy efficiency and sustainability initiatives. Highlights will include corporate sustainability goals in energy, CO2 emissions and water. A hosted lunch will follow the tour.
The event starts at 9:30 a.m. and concludes at 1:00 p.m. Please register prior to July 15th. Register here or contact Peter Kleinhenz.
OMA Supports Governor’s PUCO Appointment
June 24, 2016Eric Burkland, OMA president, issued the following statement today supporting Governor Kasich’s decision to appoint M. Howard Petricoff to the Public Utilities Commission of Ohio:
“Petricoff’s appointment to the PUCO is positive and welcome news for Ohio manufacturers. He brings to his new post at the Commission more than three decades of valuable institutional history and deep industry expertise that will enable him to fairly and effectively balance the needs of energy customers and energy suppliers alike. We look forward to working with Commissioner Petricoff on the energy issues that matter to manufacturers.”
Ohio is Attracting New Power Generation
June 24, 2016AEP Ohio, FirstEnergy and Dayton Power & Light argue that if Ohio does not act to approve their proposed above-market cost riders pending at the PUCO, their affiliated generation facilities will shut down, threatening the availability and affordability of electricity for Ohioans. They claim that adequate supplies of generation can be assured only if customers pay certain above-market charges to subsidize continued operation of their unprofitable power plants.
The truth of the matter is that major new power plant projects are in various stages of development throughout Ohio. Nearly 65 GW of new generation has been built some 2000, and more than 25 GW is committed to be built in the next four years.
OMA Goes to FERC (again) to Block FirstEnergy
June 24, 2016The OMA Energy Group again filed comments before the Federal Energy Regulatory Commission (FERC), which had previously blocked the Ohio-approved power purchase agreements (PPA) from going into effect. Since that decision in late April, FirstEnergy has modified its subsidy proposal to remove the problematic affiliate PPA and replace it with a virtual PPA. OMA Energy Group continues to oppose FirstEnergy’s unlawful attempts to collect subsidies from ratepayers.
“The implementation of the virtual PPA will bestow upon FirstEnergy Ohio regulated utilities and likely their parent company and/or FirstEnergy’s Ohio market-regulated affiliates at least $3.6 billion in revenues from Ohio customers,” said OMA Energy Group counsel Kimberly Bojko of Carpenter Lipps & Leland in the OMA motion to intervene.
PUCO Nominating Council Narrows Field
June 17, 2016The Public Utilities Commission of Ohio (PUCO) Nominating Council this week submitted the names of four finalists to be considered by Gov. John Kasich for the position of commissioner to fill an unexpired term ending April 10, 2020.
The Nominating Council recommended the following individuals: Sam Gerhardstein, Dave Hall, M. Howard Petricoff, and Gregory Williams.
The PUCO Nominating Council is a broad-based 12-member panel charged with screening candidates for the position of commissioner.
$8 Billion in Above-Market Charges, Already
June 10, 2016Take a look at this infographic that shows that FirstEnergy and AEP have collected – or will collect – more than $8 billion in above-market charges from their customers from 2001-2018 as the generation market moved through the deregulation process. That is, by regulatory fiat their customers paid, or will pay, $8 billion above the market.
This is no way to have a competitive, job-producing industrial economy.
Now, as you know, FirstEnergy and AEP Ohio continue to attempt to secure more non-bypassable customer subsidization of the utilities’ uneconomic power plants. What they asked for would have resulted in another $6 billion in above-market charges.
Isn’t it time to stop punishing customers and allow the markets to work?
Shell Commits to Western PA Cracker
June 10, 2016In big news for the region, Shell this week announced its commitment to build an ethane cracker in western Pennsylvania on the Ohio River. The announcement comes five years after Shell initially indicated the plant’s potential siting in the region.
The company expects to begin construction in 18 months and production in the early 2020s. Shell indicates the plant will produce annually 1.6 million tons of polyethylene from ethane coming from the Marcellus and Utica shales. It’s a multi-billion dollar project is projected to create 6,000 construction jobs and 600 permanent jobs at the cracker.
Upcoming: Webinar about NEXUS Gas Pipeline Project
June 10, 2016The NEXUS Pipeline stands to benefit manufacturers in Ohio and throughout the Midwest. Access to reliable, affordable energy is a big competitive issue for Ohio manufacturers.
OMA is hosting a webinar with OMA Connections Partner, NEXUS, on Thursday, June 16 to brief manufacturers about the proposed project and how manufacturers can supply NEXUS project needs; whenever possible, NEXUS is commtted to using local suppliers. Details here.