Consumers of electricity need to pay attention to legislation that is currently working its way through committee in Ohio’s House of Representatives. Ohio House Bill #6, Creates Ohio Clean Air Program, is the Republican controlled Energy and Natural Resources Committee’s revision to 2008’s energy efficiency regulations.
This bill has been correctly identified by business, consumer and environmental groups as nothing more than a bailout for a bankrupt corporation, First Energy Solutions (FES). Meanwhile, most energy market experts have concluded HB #6 will force businesses and consumers to pay higher utility rates. To fully understand the negative impact this legislation could have, consider these points.
– HB #6 replaces the $4.39 p/month (average) energy efficiency surcharge consumers currently pay with lower a rate of $2.50 but benefits returned, such as home energy efficiency programs will be eliminated. The bill re-directs subsidies exclusively to power suppliers. Why should consumers continue to pay for benefits that have been taken away?
– The new surcharge punishes large commercial and industrial users via a tiered billing structure, ranging from $20 to $2500 p/month, depending on energy consumed. The surcharge would be levied not on a firm’s total usage but upon each electric meter installed at their operating location. Businesses with more than one electric meter pay per meter.
– HB #6 is expected to raise $300 million p/y. The law would then re-direct the $300 million as a credit of $9.25 p/megawatt to firms that generate carbon dioxide free power and to natural gas and coal producers who install equipment to reduce emissions. This provision means bankrupt First Energy will receive more than half the $300 million to operate two obsolete nuclear plants that are scheduled to close. The fossil fuel power producers will be rewarded as they continue to pollute.
– Companies who produce solar or wind powered electricity will be hard pressed to qualify for any subsidized support. This bill stipulates solar plants must generate at least 50 megawatts to qualify. Currently, none of Ohio’s solar plants achieve the 50 megawatts standard. Wind powered producers must generate 5 to 50 megawatts to receive credits. Adding this limitation on top of Ohio’s already restrictive property line set back rules for windmills will inhibit development of more affordable wind power.
– HB #6 contains several special interest carve outs that will eventually force consumers to pay more for electricity. The carve outs allow Ohio power producers to opt out of a multi-state capacity market, permits low rate billing agreements for PUCO approved companies and it subsidizes FES’s higher cost nuclear power production. The costs associated with these exclusive business giveaways will be transferred to consumers.
Ohio needs an energy policy that strengthens existing efficiency standards and promotes renewable power production. Equally important, government must hold utilities and their investors accountable the expense of retiring obsolete facilities and for cleaning up damage done to the environment. Ohioans expect better, fairer legislation than HB # 6 offers.
Jordan has resided in Miami Township for 27 years. He’s an active member of the Ohio Chapter of the Sierra Club and serves on the local group’s political action committee.