POLICY GOAL: Access to Reliable, Economical Energy

Energy policy can enhance – or hinder – Ohio’s ability to attract business investment, stimulate economic growth and spur job creation, especially in manufacturing. State and federal energy policies must strike an effective balance between (a) ensuring access to reliable, economical sources of energy and (b) conserving energy to protect and preserve our natural resources.

The Ohio Manufacturers’ Association’s energy policy advocacy efforts are guided by these principles:

• Predictable, stable energy pricing achieved though effective energy rate design attracts job-creating capital investments.
• A modernized energy infrastructure will help maximize energy supplies and stabilize energy pricing and reliability.
• Strategic and operational collaboration among utilities, government and manufacturers and their supply chains produces better economic outcomes than do confrontational and adversarial regulatory proceedings.
• Ohio’s traditional industrial capabilities enable global leadership in energy technology innovation and manufacturing.
• Sustainability requirements can create profitable new market opportunities but must be economically feasible.
• Effective government regulation recognizes technical and economic realities.

Shaping energy policy in Ohio that aligns with these principles will support manufacturing competitiveness, stimulate economic expansion and job creation, and foster environmental stewardship.

Energy policy priorities include the following:

• Design an economic development discount rate for energy-intensive manufacturers that makes Ohio competitive with other states. This refers to a discount off an electric utility’s tariff rate to incentivize capital investment and job creation.
• Revise PUCO rules to remove barriers to the use of self-help strategies and to enhance reliability.
• Revise PUCO rules governing energy efficiency – including cogeneration and demand-side management – to achieve least-cost implementation and to incentivize interested parties to undertake innovative and least-cost efficiency projects.
• Ensure that electric distribution utilities comply with Ohio’s three percent cost cap for renewable energy in a least-cost manner so customers are not forced to pay above-market prices for renewable energy.
• Ensure rigorous PUCO monitoring and regulation of dealings between electric distribution utilities and their affiliates.
• Remove/mitigate barriers electric distribution utilities have created to inhibit/prevent shopping and ensure consumers have the information and tools they need to understand and take full advantage of market opportunities. For example, utilities should (a) be required to explain how customers’ peak load contribution, which is used by suppliers to price competitive generation contracts, is calculated; (b) provide the calculated peak load contribution not just to suppliers but also to customers; and (c) be held accountable for errors that affect the value to customers of competitive supply contracts. The PUCO also should require utilities to develop interactive tools that help demonstrate the “price to compare” and make apples-to-apples comparisons between competitive supply offers.
• Ensure close coordination among the PUCO, PJM Interconnection, Ohio EPA, the Ohio Power Siting Board and Ohio manufacturers to ensure least-cost and most efficient use of generation and transmission resources.
• Adopt a state-level consumer advocacy role with PJM Interconnection regarding critical transmission issues and needs.