News and Analysis
Governor Signs Solar and Wind Energy Siting Bill
July 16, 2021Gov. Mike DeWine this week signed Senate Bill 52, controversial legislation that modifies Ohio’s siting process for renewable energy projects. Among other things, the new law allows county commissioners to designate all or part of an unincorporated area of the county as a restricted area to prohibit the construction of large-scale wind farms and solar facilities, according to an LSC summary.
During the bill’s consideration, the OMA opposed local differences in siting processes in favor of a statewide approach — overseen by the Ohio Power Siting Board — to ensure clarity, uniform policy, and economy of process. 7/12/2021
FirstEnergy Will Refund $27M in HB 6 Decoupling Charges
July 9, 2021FirstEnergy customers are set to receive a “decoupling” refund on their August electricity bills — thanks to OMA-supported legislation (House Bill 128) that partially repealed the scandal-tainted House Bill 6.
Earlier this week, the Public Utilities Commission of Ohio (PUCO) — due in part to the OMA Energy Group’s legal advocacy — approved FirstEnergy’s plan to refund customers more than $27 million in fees collected through HB 6’s decoupling mechanism, which allowed the utility to guarantee itself revenue. Refund amounts will vary based on customers’ electric use this August. (Here are the refund rates.)
Prior to the PUCO’s approval, the OMA Energy Group provided an active voice in legal proceedings to advocate for a full refund of the decoupling dollars, partnering with the attorney general and Office of the Ohio Consumers’ Counsel.
HB 128, which was passed in March and took effect June 30, required the decoupling refunds. The bill also repealed HB 6’s centerpiece — more than $1 billion in subsidies for two nuclear plants operated by a former FirstEnergy subsidiary. 7/8/2021
Report: Regions of U.S. Face Elevated Risk of Electricity Disruptions
July 9, 2021Portions of the U.S. are at elevated or high risk for potential electricity emergencies this summer, according to a new reliability assessment from the North American Electric Reliability Corporation (NERC). Fortunately, Ohio and the rest of PJM territory are at “low risk” of disruptions, the report found. NERC says electricity shortages are most likely in the western U.S., Texas, New England, and parts of the Midwest. 7/6/2021
Study: Ohio’s Energy Costs Are Competitive
July 9, 2021When compared to other states, Ohio has the 13th lowest energy costs, according to a new study by WalletHub. The comparison considered monthly residential costs for electricity, natural gas, motor fuel, and home heating oil.
For the latest average electricity prices for industrial customers, see the U.S. Energy Information Agency’s comparison, in which Ohio also performs favorably. 7/7/2021
Gasoline Prices Expected to Rise Through August
July 9, 2021The national average price of gasoline has increased 40% since the start of the year. And prices are expected to rise another 10 to 20 cents — to more than $3.25 a gallon — by the end of August, according to a new analysis by AAA. This heat map shows current average gasoline prices across all 50 states. 7/7/2021v
Budget Contains kWh Exemption for Self-Generation
July 1, 2021The new state budget contains little that impacts energy policy. However, it does provide a kilowatt-hour tax exemption for entities that generate electricity primarily for their own consumption, either on the same premises or at a facility on a property contiguous to where the electricity is consumed. This is a valuable provision for OMA members that had implemented either self-generation or alternative-energy generation agreements. 6/29/2021
Solar and Wind Energy Siting Bill Sent to Governor
July 1, 2021Unrelated to the budget, the House this week voted 52-44 — followed by a Senate concurrence vote of 21-12 — to approve Senate Bill 52, which would make significant changes to Ohio’s power siting process for large-scale wind and solar projects. Specifically, the bill would:
- Enable county commissioners to approve a project via a lack of action, or to adopt a resolution rejecting or limiting the footprint of a proposed project;
- Allow local officials to adopt a resolution, subject to referendum, to designate a restricted area in which any project is prohibited or block any material amendment to an existing facility; and
- Create two ad-hoc seats to the Ohio Power Siting Board to represent county commissioners and township trustees in proceedings affecting their jurisdiction.
Critics say the bill unfairly singles out wind and solar projects. In an attempt to provide a workable solution, the OMA engaged at the Power Siting Board-level to reach a compromise — one that still achieved the goals of the bill sponsors — but remains opposed to the final version of the bill. To ensure clarity, uniform policy, and economy of process, the OMA continues to urge a statewide approach to such projects and decisions.
The bill now awaits Gov. Mike DeWine’s signature or veto. 6/30/2021
Senate Approves Bill Barring Natural Gas Bans
June 25, 2021The Ohio Senate has passed House Bill 201, a measure prohibiting local governments from preventing consumers from obtaining natural gas service or propane. The bill now goes to the governor for his signature or veto. Earlier this year, the OMA worked with the bill sponsors and other interested parties to ensure the language of HB 201 matched its intent. 6/25/2021
U.S. Consumed Record Amount of Renewable Energy in 2020
June 25, 2021Last year, consumption of renewable energy in the U.S. grew for the fifth year in a row, reaching a record high of 12% of total U.S. energy consumption. According to the Energy Information Agency, renewable energy was the only source of energy consumption that increased in 2020 from 2019. By itself, solar consumption increased 22%, while wind energy consumption grew 14%. 6/21/2021
Householder Expelled From Ohio House for HB 6 Scandal
June 18, 2021For the first time since before the Civil War, the Ohio House has expelled one of its members. On a 75-21 vote, the chamber stripped Rep. Larry Householder (R-Glenford) of his office for “disorderly conduct” amid his ongoing criminal case tied to Ohio’s scandal-ridden 2019 energy law, House Bill 6. (The OMA led the opposition to HB 6 upon its introduction in 2019.)
The former speaker was arrested last summer along with his political strategist Jeff Longstreth and three lobbyists — accused of accepting $61 million from FirstEnergy through a dark money group to help ensure enactment of HB 6. The law authorized customer-funded subsidies for FirstEnergy’s nuclear generation assets, OVEC-owned coal plants, and more. Householder has pleaded not guilty to the charges, and this week — prior to the House vote — declared his innocence in front of the House Rules & Reference Committee. 6/16/2021