News and Analysis
FERC Pulls Plug on Unwise Subsidy Rule
January 12, 2018This week the Federal Energy Regulatory Commission (FERC) issued an order to terminate its proposed rulemaking that was submitted by the Secretary of the Department of Energy that would have used consumer-paid subsidies to prop up uneconomical coal and nuclear generators in the name of grid reliability and resiliency.
OMA Energy Group (OMAEG), among other customer groups, twice submitted comments to FERC opposing the proposed rule.
In this summary of the FERC’s decision, OMA energy counsel Kim Bojko of Carpenter Lipps & Leland wrote: “… FERC concluded that although the goal of grid reliability and resiliency is a worthy one, the record in this case simply does not support the existence of a reliability or resiliency problem. And even if it had, the Proposed Rule did not put forth a solution that would actually solve that problem.”
And, “FERC’s Order … will benefit … consumers by not implementing a rule that would force consumers to fund a bailout to certain, select generators that can no longer compete in the market. The Order defined resiliency and set forth a process to explore … whether a problem even exists. The Order also appears to be stating that if a problem does in fact exist, FERC will look for market solutions on a regional basis.” 1/11/2018
Advocates Tell Senators No to Power Plant Bailouts
January 12, 2018
OMA energy counsel Kim Bojko of Carpenter Lipps & Leland and Ohio State University economist Ned Hill
The OMA told members of the Senate Public Utilities Committee this week that manufacturers oppose bailouts of unprofitable power plants.
Testifying on behalf of the OMA, OMA energy counsel Kim Bojko of Carpenter Lipps & Leland expressed opposition to the most recent version of Senate Bill 155, which would provide a subsidy to maintain uneconomic power plants owned by the Ohio Valley Electric Corp. (OVEC), including a plant in Indiana.
Bojko reminded lawmakers that the bill is a departure from the pro-market policies of the state regarding electric generation and competitive retail electric service.
Ohio State University economist Edward “Ned” Hill also presented opponent testimony. Dr. Hill said, ” What the committee has before it is another attempt to subsidize uneconomic legacy electric generation resources owned by Ohio’s Investor-Owned Utilities (IOUs).” 1/11/2018
Amazon Wins Electric Discount in Ohio
January 12, 2018Members of the PUCO this week voted unanimously to approve an electricity discount for several newly sited Amazon data centers (Vadata). The discount is made possible by exempting Amazon’s affiliate from certain distribution charges which has the effect of shifting costs to other customers, according to statements in the Columbus Dispatch and Columbus Business First.
The PUCO-approved deal requires a status report after five years, specifically in response to comments from OMA Energy Group and others to ensure that Vadata is living up to its commitments.
The OMA Energy Group intervened in the case and met with policymakers to remind them that one customer’s discount is another customer’s surcharge. The final approved deal includes some consumer improvements. 1/11/2018
Start 2018 Efficiently! Grant Funding Available for Manufacturing Energy Efficiency
January 12, 2018Grant funding assistance is available to Ohio manufacturers who are investigating energy-efficiency projects in 2018 through the state’s Energy Efficiency Program for Manufacturers.
The grants can be used to identify energy efficiency recommendations or take a deep dive on specific equipment’s operation and energy impact. Past grant recipients have conducted an energy assessment of their entire plant, while others have focused on improving operations of key energy-intensive equipment, like air compressors, chillers or furnaces.
The state is offering a $1-for-$1 match in funds, up to $15,000 per manufacturing facility. Utility energy study funds are eligible for the manufacturers’ cost share.
The grant funding is limited, and available on a first-come, first-serve basis. Please contact John Seryak of Go Sustainable Energy, OMA’s energy engineering consultant, for more information and to apply for funding. 1/5/2018
PUCO Plans PowerForward 2018
January 12, 2018The Public Utilities Commission of Ohio (PUCO) is planning for PowerForward 2018, a series of presentations about energy rate making and regulation over six days, March 6-8 and March 20-22.
The PUCO says that through this series, it intends to chart a clear path forward for future grid modernization projects, innovative regulations and forward-thinking policies.
Here are the topics planned to date for March.
Also, the PUCO is still calling for presentations. If you are interested in potentially presenting, contact the PUCO here. 1/10/2018
Electric Transmission Charges on the Rise
January 5, 2018Transmission rates on electricity consumers are rising by billions of dollars across the PJM grid (which includes Ohio).
But, are consumers getting their money’s worth? Not if the rate regulation process is not rigorous. And, it is not for one type of project, “supplemental transmission projects,” for which determinations of necesssity or prudency are not required. Nor are competitive options.
Read more in this op-ed by Marc Gerkin, president and CEO of American Municipal Power. 1/4/2018