Energy Management

OMA Presents at PUCO’s Energy Efficiency Workshop

OMA energy consultant Wyatt Elbin shared insights with members of the Public Utility Commission of Ohio (PUCO) at their recent energy efficiency workshop. Elbin focused his comments on manufacturers’ support for effective energy efficiency strategies that save customers money while driving greater competitiveness.

He also made the case for tariff and rate reform, citing increased transmission and distribution costs — especially acute in the AEP and FirstEnergy service territories.

Utility-administered energy efficiency programs were repealed under House Bill 6, the bill at the center of a massive alleged bribery scheme. 4/7/2022

Analysis of Energy Market Turmoil

In its April edition of The Real Economy, OMA Connections Partner RSM offers a thorough analysis of the turmoil in the energy sector and its impact on manufacturers. The publication is available here.

Meanwhile, RSM has published this insight into how original equipment manufacturers are ramping up investment in electric vehicle technology, even as key inputs face supply pressure. 4/7/2022

OMA’s Energy Roundup

The following are energy-related developments the OMA is tracking:

• The Federal Energy Regulatory Commission says it’s taking another look at two of its proposed policies to add new climate-related hurdles to natural gas infrastructure projects following “a torrent of complaints.”
• The U.S. Energy Department has proposed new rules to increase the efficiency of room air conditioning units and pool heaters — the first new efficiency standards for appliances under the Biden administration.
• More Americans (nearly half) are concerned about the availability and affordability of energy, according to a new survey from Gallup.
• The U.S. Energy Information Administration projects that renewable generation will supply 44% of U.S. electricity by 2050. (This as the U.S. installed a record 3 GW of grid-scale storage in 2021.)
• More than 100 manufacturers of energy efficiency and renewable energy products are pressing federal leaders for green energy tax provisions.

Meanwhile, in its FY 2023 budget plan, the Biden administration is proposing billions in new federal spending to reshape the clean energy sector. 3/31/2022

Analysis: HB 317 Threatens to Raise Electricity Costs

Most Ohioans are well aware of the anti-competitive, utility-driven public policy that was imposed three years ago via the scandalous House Bill 6. Now another proposal, House Bill 317, threatens Ohio’s energy competitiveness.

This OMA document outlines the key concerns surrounding HB 317, including four reasons why the bill fails to protect electric customers. 3/22/2022

Attorneys Name the Architects of House Bill 6 Scandal

Who paid the bribes in the House Bill 6 scandal? Attorneys representing FirstEnergy investors told a federal judge that the utility’s former CEO, Chuck Jones, along with the company’s senior vice president, Michael Dowling, masterminded payments to Ohio officials in the $60 million bribery scheme, the AP reports.

Both executives were fired in October 2020 — three months after federal investigators arrested Larry Householder, the then-speaker of the Ohio House. 3/24/2022

At a Glance: Ohio’s Natural Gas Advantage

A recent study from IHS Markit estimates that by 2040, nearly half of all U.S. natural gas production will come from the Ohio Valley. JobsOhio has published this infographic to illustrate how the region’s rapidly growing oil and gas sectors have attracted more than $90 billion in investments throughout the entire value chain, including chemical manufacturing. 3/24/2022

Battle Over Michigan Oil Pipeline Takes on New Urgency

Michigan’s Democratic leaders, including Gov. Gretchen Whitmer, are quietly continuing their legal battle to shut down a major oil pipeline, according to reports — even as fuel prices are near record highs.

The National Association of Manufacturers has filed an amicus brief in the lawsuit over whether the pipeline can continue operations, while Ohio Lt. Gov. John Husted has said Michigan’s leaders are being “unreasonable and irresponsible” in their efforts to close Enbridge’s Line 5. 3/24/2022

OMA’s March 23 Meeting Will Spotlight House Bill 317

Legislation (House Bill 317) that is currently pending in the Ohio House would worsen Ohio’s electric ratemaking mechanism, thereby failing to protect manufacturers and other customers, while also harming Ohio’s energy competitiveness.

This bill will be a key focus of the OMA Government Affairs Committee’s meeting on Wednesday, March 23. Members who are interested in learning more about this harmful legislation can register here. 3/17/2022

OMA Energy Roundup

The following are some of the energy-related developments the OMA is tracking:

• A new Rasmussen poll shows 70% of likely voters strongly favor a policy of promoting domestic petroleum production.
• U.S. coal exports grew by 23% last year versus 2020 as natural gas prices increased, according to the Energy Information Administration (EIA). China and India were the largest importers of U.S. coal.
• Solar power and batteries account for 60% of planned new U.S. electric generation capacity, the EIA reports.

Meanwhile, on the House Bill 6 front, a U.S. district judge recently demanded answers to questions about FirstEnergy’s role in the scandal, while a January 2023 date has been set for a jury to begin hearing arguments in the corruption case against former Ohio House Speaker Larry Householder. 3/17/2022

AEP Transmission Customers Face Soaring Costs

AEP Ohio customers will continue to see double-digit percentage increases in their electric transmission costs, which are embedded in retail electric rates. The driver is unfettered “supplemental” transmission project investment from AEP Transmission, which serves a multi-state region.

AEP Transmission’s underlying transmission rate (see this graph) has nearly tripled since 2015. Supplemental projects are not reviewed or regulated by PJM or the FERC, since such projects are not needed for system reliability. The Ohio Power Siting Board declined to exercise its duty to review the local supplemental project investments.

As a monopoly, AEP Transmission’s expenditures are not checked by market forces or buyers. The transmission rate increase will hit customers in the April billing cycle. Meanwhile, AEP, which reported a 14% increase in annual earnings last year, recently announced it is selling its competitive renewable energy generation assets in order to increase transmission investments. 3/7/2022