News and Analysis
Threats to Ohio’s Competitive Market for Electricity
June 3, 2016Ongoing efforts by FirstEnergy (FE) and AEP Ohio (AEP) to secure non-bypassable customer subsidization of the utilities’ uneconomic power plants put the benefits of Ohio’s and the region’s electricity markets at risk.
In continuing its opposition to the utilities’ proposals to secure guaranteed profits for their uneconomic generation assets, the OMA Energy Group is standing up to protect energy markets. The utilities’ efforts to add non-bypassable charges to the market-based price of power would cause electricity customers to pay above market prices, undermining the competitiveness of the state’s industrial economy.
Read an issue brief here. Contact OMA’s Ryan Augsburger for more information.
AEP Asks PUCO to Extend Rate Plan
June 3, 2016On May 13, AEP filed an application to extend and revise its current electric security plan (ESP) through May 2024. This amended ESP proposal is an outgrowth of AEP’s PPA settlement case.
OMA Energy Counsel Kim Bojko of Carpenter Lipps & Leland has prepared a summary of AEP’s proposal.
Rover Pipeline Hearings: Chance to Support
June 3, 2016Ohio EPA will hold five public information sessions/hearings regarding seven draft air permits related to the installation and operation of compressor stations in Carroll, Crawford, Defiance, Harrison, Monroe, Noble and Wayne counties. The compressor stations are intended to facilitate delivery of natural gas along the proposed Rover pipeline.
The pipeline project is important to the development Ohio’s energy resources.
Citizens may testify at the public hearings or submit comments in writing to Ohio EPA prior to the close of the public comment periods. Contact OMA’s Ryan Augsburger for more information.
Here is an Ohio EPA factsheet detailing the agency’s role in issuing air permits and considerations related to natural gas compressor station emissions.
Haque Sworn in as PUCO Chairman
May 27, 2016Asim Haque was sworn in as chairman of the Public Utilities Commission of Ohio (PUCO) this week. Haque has been on the commission since 2013 and has served as vice-chairman.
He appointed Commissioner Beth Trombold as his vice-chair.
OMA Defends Public Benefit of Pipelines
May 20, 2016Together with other business interests, the OMA filed an amicus brief in a case now pending before the Ohio Seventh District Court of Appeals, in Youngstown. The OMA urges the Court of Appeals to uphold the ruling of a Harrison County trial court in the case, Sunoco Pipeline v.Carol A. Teter, Trustee.
At issue is when a pipeline developer may invoke Ohio’s eminent domain statute to site the pipeline. Landowners have challenged Sunoco’s authority to use eminent domain to construct the Mariner East 2 project which will deliver natural gas liquids from the Marcellus and Utica shale in Ohio to points eastward.
The OMA recognizes that pipelines are the safest, most reliable and cost effective means of transporting petroleum and petroleum products, which contributes to reliable and low-cost energy and raw materials for manufacturers.
AEP Seeks to Extend Rate Plan Until 2024
May 20, 2016On May 13, AEP filed to extend its current rate plan, asking regulators for approval by September. The extension request is a component of a broader set of applications requested by AEP with modifications following FERC’s move to block approval of the power purchase agreement cases in late April.
The plan would establish permissible utility charges through 2024 and would add some new riders that the utility can use to fund programs and subsidize certain customers. Customers cannot avoid non-bypassable charges by shopping.
Read more in this Columbus Dispatch story by Dan Gearino.
PUCO Nominating Council Seeks Applicants for Commissioner Position
May 20, 2016The Public Utilities Commission of Ohio (PUCO) Nominating Council is seeking applicants for the position of commissioner of the PUCO to fill the vacancy created by Andre Porter’s resignation.
The PUCO Nominating Council is a broad-based 12-member panel that screens candidates for the position of PUCO commissioner. The PUCO is comprised of five commissioners appointed to rotating, five-year terms by the governor. The commissioners are responsible for regulating Ohio’s investor-owned public utilities.
After reviewing the résumés of all applicants, the Nominating Council will interview and narrow the list to those most qualified for the position, and recommend four finalists to Gov. Kasich. The governor will have 30 days to either appoint a commissioner from the list or request a new list from the Nominating Council. The governor’s appointment is subject to confirmation by the Ohio Senate.
OMA Energy Committee Heads to Akron
May 20, 2016In response to member interest in more regional opportunities, the OMA Energy Committee will meet in Akron on Wednesday, May 26 from 10:00 a.m. until 1:00 p.m., and includes lunch.
The meeting will be held at Ariel Corp., 3194 Massillon Rd., Akron, OH 44312. An optional 45-minute tour of the Ariel Corp. facility follows the meeting. Ariel has a sophisticated metal machining operation at this location.
In addition, members are invited to a networking dinner the evening prior, Wednesday, May 25, at Bender’s Tavern, 137 Court Ave SW, Canton, OH 44702.
Please register here for in-person or call-in attendance, and dinner option. Or call us at (800) 662-4463.
PUCO Moves Fast to Grant FirstEnergy Bailout Rehearing
May 13, 2016The Public Utilities Commission of Ohio (PUCO) granted FirstEnergy’s request for a rehearing of its subsidy request (derailed by a ruling of the Federal Energy Regulatory Commission (FERC)). The PUCO acted before its deadline for parties to file opposition to a rehearing.
The new FirstEnergy proposal would require ratepayers to pay a rider directly to the distribution utility, rather than to the generation affiliate, in an attempt to sidestep FERC oversight. The rider, if approved, is estimated to cost customers $4 billion over eight years.
FirstEnergy had argued that the previous plan was necessary to keep two plants operating to assure adequate electricity supply. Under the new plan, the two plants receive no revenue.
The OMA Energy Group will oppose the new plan of FirstEnergy before the PUCO, and, if necessary, at FERC.
New Study: Wholesale Markets Working Well
May 13, 2016A new study commissioned by PJM, the regional transmission organization serving Ohio, finds that wholesale markets are providing the benefits they were designed for: lower costs, greater efficiencies, innovation, and attraction of cost-effective generation.
The report debunks the claim that wholesale markets are forcing premature retirements of legacy generation units. It finds that retirement rates are similar in market and regulated areas.
The report warns state policymakers from distorting the effectiveness of the markets with subsidies to interests claiming that the markets aren’t working.
“The simple fact that a generating facility cannot earn sufficient market revenue to cover its going-forward costs does not reasonably lead to the conclusion that wholesale markets are flawed. More likely, it demonstrates that the generating facility is uneconomic,” states the report.