Ohio utility retracts energy-efficiency plan despite potential savings
Another proposed energy-saving program is on the chopping block in Ohio. Duke Energy Ohio quietly dropped plans late last year to roll out a broad portfolio of programs that would have boosted energy efficiency and encouraged customers to use less electricity during times of peak demand. The plans, which would have saved ratepayers nearly $126 million over three years after deductions for costs, were part of a regulatory filing last April that sought to increase charges on customers’ electric bills. The move came after settlement talks with other stakeholders, including the state’s consumer advocate, which opposes collecting ratepayer money to provide the programs to people who aren’t in low-income groups. State regulators are now weighing whether to approve the settlement with a much smaller efficiency program focused on low-income neighborhoods. The case is the latest chapter in a struggle to restore utility-run programs for energy efficiency after House Bill 6, the 2019 nuclear and coal bailout law that also gutted the state’s renewable energy standards and eliminated requirements for utilities to help customers save energy. Studies show that utility-run energy-efficiency programs are among the cheapest ways to meet growing electricity needs and cut greenhouse gas emissions. Lower demand means fossil-fuel power plants can run less often. Less wasted energy translates into lower bills for customers who take advantage of efficiency programs. Even customers who don’t directly participate benefit because the programs lower peak demand when power costs the most. Energy efficiency can also put downward pressure on capacity prices — amounts paid by grid operators to electricity producers to make sure enough generation will be available for future needs. Due to high projected demand compared to available generation, capacity prices for most of the PJM region, including Ohio, will jump ninefold in June to about $270 per megawatt-day. “At a time when PJM is saying we’re facing capacity shortages, we should be doing everything we can to reduce demand,” said Rob Kelter, a senior attorney for the Environmental Law & Policy Center. Since 2019, the Public Utilities Commission of Ohio has generally rejected utility efforts to offer widely available, ratepayer-funded programs for energy efficiency. Legislative efforts to clarify that such programs are allowed under Ohio law have been introduced but failed to pass. In the current case, Duke Energy Ohio, which serves about 750,000 customers in southwestern Ohio, proposed a portfolio of efficiency offerings that would have cost ratepayers about $75 million over the course of three years but created net savings of nearly $126 million over the same period.
Another proposed energy-saving program is on the chopping block in Ohio. Duke Energy Ohio quietly dropped plans late last year to roll out a broad portfolio of programs that would have boosted energy efficiency and encouraged customers to use less electricity during times of peak demand. The plans, which would have…
Another proposed energy-saving program is on the chopping block in Ohio.
Duke Energy Ohio quietly dropped plans late last year to roll out a broad portfolio of programs that would have boosted energy efficiency and encouraged customers to use less electricity during times of peak demand. The plans, which would have saved ratepayers nearly $126 million over three years after deductions for costs, were part of a regulatory filing last April that sought to increase charges on customers’ electric bills.
The move came after settlement talks with other stakeholders, including the state’s consumer advocate, which opposes collecting ratepayer money to provide the programs to people who aren’t in low-income groups.
State regulators are now weighing whether to approve the settlement with a much smaller efficiency program focused on low-income neighborhoods.
The case is the latest chapter in a struggle to restore utility-run programs for energy efficiency after House Bill 6, the 2019 nuclear and coal bailout law that also gutted the state’s renewable energy standards and eliminated requirements for utilities to help customers save energy.
Studies show that utility-run energy-efficiency programs are among the cheapest ways to meet growing electricity needs and cut greenhouse gas emissions. Lower demand means fossil-fuel power plants can run less often. Less wasted energy translates into lower bills for customers who take advantage of efficiency programs. Even customers who don’t directly participate benefit because the programs lower peak demand when power costs the most.
Energy efficiency can also put downward pressure on capacity prices — amounts paid by grid operators to electricity producers to make sure enough generation will be available for future needs. Due to high projected demand compared to available generation, capacity prices for most of the PJM region, including Ohio, will jump ninefold in June to about $270 per megawatt-day.
“At a time when PJM is saying we’re facing capacity shortages, we should be doing everything we can to reduce demand,” said Rob Kelter, a senior attorney for the Environmental Law & Policy Center.
Since 2019, the Public Utilities Commission of Ohio has generally rejected utility efforts to offer widely available, ratepayer-funded programs for energy efficiency. Legislative efforts to clarify that such programs are allowed under Ohio law have been introduced but failed to pass.
In the current case, Duke Energy Ohio, which serves about 750,000 customers in southwestern Ohio, proposed a portfolio of efficiency offerings that would have cost ratepayers about $75 million over the course of three years but created net savings of nearly $126 million over the same period.