Energy

Recently, Aspire Energy Express LLC announced that it had entered into a natural gas transportation agreement with an AEP subsidiary, AEP Development Services LLC, for Aspire Energy Express to construct and operate a natural gas pipeline in central Ohio to help AEP Ohio power two data centers.

On July 21st, the Public Utilities Commission of Ohio staff issued a report recommending that the Commission approve the arrangement. It is not clear that AEP Development Services qualifies as a public utility and is able to enter into this agreement under Ohio law.

Additionally, the arrangement raises concerns about the separation of corporate power infrastructure services, which will be necessary for supplying large loads, such as data centers. 8/5/2025

One of the key OMA-supported provisions included in House Bill 15, passed by the Ohio General Assembly earlier this year, is the repeal of subsidies that Ohioans have been forced to pay to utility ownership of two uncompetitive and uneconomic OVEC power plants. In all, Ohio ratepayers subsidized more than $683 million dollars in losses for OVEC’s operations.

The OMA’s energy engineering consultant, RunnerStone LLC, has calculated that the elimination of the rider is estimated to save Ohioans over $400 million through 2030.

Register today for the Ohio Manufacturers’ Energy Conference held on September 18 to learn more about the impact of House Bill 15, among many other topics. 8/5/2025

The Sixth Circuit Court of Appeals has declined to revisit the racketeering conviction of former Ohio House Speaker Larry Householder, rejecting requests for a review from the full slate of judges. The appeals court panel determined that the issues raised in Householder’s petition were fully considered in his original request.

A three-judge panel previously upheld their conviction of Householder for his participation in a pay-to-play scheme that traded political contributions from FirstEnergy for the bailout of two nuclear plants. 7/28/2025

Reuters this week reported on the fading boom for U.S. clean energy, attributing the dip to “a U-turn” in policy positions by the Trump administration. The article quotes research firm Wood Mackenzie, which forecasts solar and wind installations could be 17% and 20% lower than previously forecast.

Another research firm, Rhodium, said the Trump policies put at risk $263 billion of wind, solar, and storage facilities. “The Trump administration has defended its moves to end support for clean energy by arguing the rapid adoption of solar and wind power has created instability in the grid and raised consumer prices – assertions that are contested by the industry and which do not bear out in renewables-heavy power grids, like Texas ERCOT.”

Plan to attend the OMA Manufacturers’ Energy Conference on Sept 18 to gain insights into these and other important energy topics.7/30/2025

On July 22nd, PJM published the results of the latest capacity auction for the 2026/27 delivery year, resulting in a historically high price of $329.17/MW-day, a substantial increase from the 2025/26 auction of $269.92/MW-day, and hitting the maximum of a newly established cap. The cap will remain in place for the next auction before expiring. The auction will cost customers in PJM a total of $16.1B in the 2026/27 delivery year, up from $2.2B in the 2024/25 delivery year.

In a letter to grid operator PJM Interconnection’s leadership last week, the OMA expressed concern that poor oversight and a lack of transparency at PJM are driving up electricity costs for Ohio customers without improving reliability. Given the recent auction results, capacity charges paid for by customers will now total nearly $31 billion over the next two years—more than the previous 6 years combined. Yet, the interconnection backlog and capacity auction delays by PJM persist.

The OMA released a statement following the results of the auction urging PJM to implement faster connection of generation, resume regular three-year auctions, and utilize transparent load forecasting. 7/23/2025

This week, reporting from Cleveland.com’s Jeremy Pelzer found that years after the House Bill 6 scandal, Ohio’s Public Utilities Commission (PUCO) continues to face scrutiny over claims it pressures outside auditors to soften reports critical of utilities. Testimony and documents show PUCO staff have urged auditors to dilute or delete findings regarding companies such as FirstEnergy, AEP Ohio, and Duke Energy, often before reports are made public.

Allegations echo issues tied to former PUCO chair Sam Randazzo, accused of taking millions in bribes from FirstEnergy before his death in 2023.

Audits in question involve hundreds of millions in customer charges, from grid modernization fees to subsidies for aging coal plants. 7/21/2025

Early bird registration is open for the 2025 Ohio Manufacturers’ Energy Conference! The conference will be held on Thursday, September 18, at the Quest Conference Center in Westerville, OH. Register today to secure the Member Early Bird price of $125.

The conference will feature sessions covering retail choice and the future of utility oversight, how to manage rising electricity costs, updates on Ohio energy policy, and the facts on Ohio’s electric transmission system. Register today! 7/15/2025

In a letter to grid operator PJM Interconnection’s leadership this week, the OMA expressed concern that poor oversight and a lack of transparency at PJM are driving up electricity costs for Ohio customers without improving reliability. Capacity charges will jump by $12 billion in the 2025/26 delivery year, yet the interconnection backlog and auction delays by PJM persist.

In the letter, the OMA cites years of missed opportunities, flawed forecasts, and failure to hold utilities accountable, all of which have left manufacturers and ratepayers footing the bill. As PJM considers new leadership next year, the OMA has asked that they take responsibility for supporting competitive markets and put their electric customers first. 7/16/2025

The Public Utilities Commission of Ohio (PUCO) this week approved a new AEP Ohio rate structure specifically targeting large data centers with loads exceeding 25 megawatts.

The decision, aimed at addressing transmission capacity concerns, imposes higher minimum demand charges, exit fees, and collateral requirements on data center customers.

The OMA pushed back on the decision in a statement, arguing that the tariff is discriminatory, lacks sufficient evidence, and will discourage business investment in Ohio. The OMA is evaluating options to appeal the decision.

Although the PUCO ordered AEP to lift its moratorium on new service connections, it made few changes to the proposed tariff, raising concerns about fairness and transparency. 7/10/2025

Grid operator PJM Interconnection’s capacity prices for the 2025/2026 delivery year, which began in June 2025, have surged significantly compared to previous years, and manufacturers will see resulting increases to their power bills over the summer.

The OMA has critiqued PJM’s delays to its capacity auction to procure new power generation, as timely auctions are critical to secure new plants to replace retiring power plants. The auction delays combined with questionable capacity market changes by PJM and PJM’s backlogged interconnection queue for new generation, rated among the nation’s worst, have all contributed to the increases.

The OMA has recorded a presentation with information that manufacturers can use during this critical time featuring John Seryak, OMA’s Energy Engineer, and Susanne Buckley with Scioto Energy to explain what contributed to the spike in charges and what manufacturers can do to help manage their increased power bills.

Stay tuned for more coverage on this topic and others critical to the manufacturing industry, to be highlighted at the upcoming 2025 Ohio Manufacturers’ Energy Conference on Thursday, September 18. Registration opening soon! 7/10/2025

Former Speaker Householder, who is currently serving a 20-year prison sentence for his role in the House Bill 6 bribery scheme, is asking the 6th Circuit Court of Appeals to reconsider his failed appeal. Householder argues that the panel of judges should not have rejected his appeal earlier this year.

In Householder’s case, the judges previously concluded that the evidence presented was more than enough to show a quid pro quo. 7/1/2025

On June 23rd, PJM successfully served the region’s highest electricity demand in more than ten years, with regional grid load peaking at 160,526 MW. The extreme weather broke over 600 high-temperature records across the U.S. In Columbus, temperatures reached the mid-90s with the heat index near 105.

Early this week, PJM issued Maximum Generation, Load Management and Hot Weather alerts through Thursday, June 26th. These alerts are tools PJM uses to meet demand at a lower cost compared to requiring the construction of new power plants.

While some demand response resources were activated elsewhere across PJM’s 13-state footprint, no demand response was called within any Ohio zone, indicating that generation was able to meet demand without curtailment or emergency measures. Manufacturers have a direct stake in grid performance during these events, as shortfalls could impact operations and lead to costly infrastructure investments. 6/24/2025

U.S. Senator Jon Husted and U.S. Representative Bob Latta have introduced the Nuclear REFUEL Act to simplify licensing requirements for nuclear recycling facilities as a way to boost U.S. nuclear energy production.

Currently, the United States doesn’t recycle nuclear fuel at a commercial scale. The Nuclear REFUEL Act would establish a streamlined Nuclear Regulatory Commission licensing procedure for nuclear fuel recycling facilities. 6/24/2025

Representatives of the OMA have presented testimony in an ongoing trial examining the public corruption culminating in House Bill 6 in 2019 that required captive utility customers to subsidize utilities and select energy companies for unneeded power plants and other corrupt mechanisms.

This week, lawyers for defendant FirstEnergy have made repeated motions to prevent the OMA witness from being heard in an effort to head off the allegations of wrongdoing. The OMA team will continue to advance manufacturers’ interests. Read more in Gongwer News. 6/24/2025

U.S. Environmental Protection Agency Administrator Lee Zeldin recently announced the repeal of the “Clean Power Plan 2.0,” which had imposed strict emission requirements on coal- and gas-fired power plants. This policy impeded progress on new competitive natural gas power plants, reduced production, and discouraged investment in new generation.

The OMA has previously supported efforts from Congressman Troy Balderson that would overturn the Clean Power Plan 2.0. 6/17/2025

This week, former FirstEnergy lobbyist Justin Biltz testified before the Public Utilities Commission of Ohio, where OMA Energy Group attorney Kim Bojko pressed him for details about the utility’s secret payments and backdoor deals tied to Ohio’s largest bribery scandal.

Bojko questioned Biltz on the millions paid to entities linked to ex-PUCO Chair Sam Randazzo, including a $4.3 million payout before his 2019 appointment. Biltz admitted the payments and meetings with Randazzo shaped House Bill 6 but claimed he did not know if customer rates were used to recoup the money. 6/13/2025

New load growth from artificial intelligence, data centers, advanced manufacturing, and electrification of vehicles and appliances is putting utility load forecasts to the test for their accuracy.

Industrial and consumer groups wrote a letter to the Federal Energy Regulatory Commission (FERC) urging them to be more involved in utility load forecasts. The OMA has been an early and frequent voice calling for more transparency of utility load forecasts.

Last year in Ohio, AEP forecasted their summer peak load in 2035 of approximately 26,000 MW. This year, their 2035 forecast jumped to 40,000 MW, even amidst a moratorium on new data center interconnections. High load forecasts could trigger unnecessary generation and transmission projects whose costs fall on the shoulders of consumers through utility rate increases. 6/11/2025

This week, the Ohio Manufacturers’ Association (OMA) Board of Directors awarded the OMA’s Dan French Legacy Award to leaders of Ohio’s General Assembly for their work on House Bill 15, a landmark energy bill that restores needed balance to Ohio’s utility regulation and repeals key provisions of House Bill 6.

Senate President Rob McColley, House Speaker Matt Huffman, Senate President Pro-Tem Bill Reineke, Senator Brian Chavez, Representative Adam Holmes, and Representative Roy Klopfenstein were awarded the Dan French Legacy Award for their commitment to free markets and competitive generation in House Bill 15.

The Dan French Legacy Award, established to honor Lt. Col. Daniel P. French, recognizes individuals who have demonstrated exemplary service and leadership on behalf of Ohio’s manufacturing community. 6/4/2025

It was all smiles at the OMA’s May Energy Committee last week, as members celebrated a key win for manufacturers in energy policy.

House Bill 15, which was signed by Governor Mike DeWine last week, repealed the subsidies for uneconomical power plants in southern Ohio and Indiana, a repeal of above-market charges, also known as “riders,” and increased utility transparency in the form of energy “heat maps.”

The committee also heard a presentation on rising capacity prices and what manufacturers can do to manage their power bills. Additionally, the committee welcomed special guest State Senator Mark Romanchuk, who emphasized that OMA’s advocacy was critical in the passage of HB 15. 5/22/2025

Ohio’s utility regulatory agency, the Public Utilities Commission of Ohio (PUCO), made headlines this week following their advocacy to remove a breakout session at a national conference that was set to be focused on corruption within an agency.

The National Conference of Regulatory Attorneys had planned to hold a breakout session during its annual meeting titled Lessons from Ohio: What should a staff attorney do if you think the chairman may be a crook?, alluding to former PUCO Chairman Sam Randazzo, who had been awaiting federal and state trials on a variety of corruption-related charges.

After receiving pressure from the general counsel of the PUCO to cancel the session, the panel discussion went ahead under a different title focusing on character and ethics. 5/25/2025