Ohio Partners for Affordable Energy (OPAE) bill

Gongwer Ohio Report: Volume #76, Report #169, Article #04 --Friday, August 24, 2007 ENTITY WOULD GAIN AUTHORITY TO BUILD ELECTRIC PLANTS, PURCHASE POWER, UNDER NEW PLAN A new quasi-governmental authority would be created to purchase, build and finance electric generation plants and energy efficiency technologies under a proposal that a coalition of non-profit organizations outlined on Friday. The concept, released by Ohio Partners for Affordable Energy, suggests the creation of an Ohio Energy Authority that could generate or purchase power that utilities would be required to buy and sell - both at cost - to consumers. OPAE Director Dave Rinebolt said his group's plan is in line with suggestions from a collection of industrial users in that they both are proposing a return to cost of service ratemaking. He noted, however, that his proposal prohibits "single-issue" ratemaking for all factors with the exception of fuel costs. "Customers pay for everything when it comes to utility service," he said. "If we are paying, then we ought to be able to get what we need - affordable rates, energy efficiency, renewable energy and reliability." The plan (Summary , Legislation , Code Sections ) was released Friday as groups continue to prepare for the release of a more detailed electric utility regulation proposal from Gov. Ted Strickland. Under OPAE's proposal the authority would generate funds for its projects by issuing state-backed bonds, Mr. Rinebolt said, noting that a similar authority exists in New York, and was included in a new Illinois law on the electric industry. The plan also calls for the payment of prevailing wage on all authority projects. The proposal offered by OPAE, which consists of 60 non-profit organizations, also calls for significant use of demand-side management and energy efficiency technologies. It also seeks implementation of a 25% renewable portfolio standard by 2025. The proposal says utilities would be permitted to make a "reasonable" profit, which would be assessed by the Public Utilities Commission of Ohio on an annual basis. The PUCO, it said, would have the ability to initiate proceedings that could result in lower rates if profits are found to be excessive. OPAE also calls for: --improved reliability standards and investments in the distribution system --making special contracts between large consumers and electric companies public; --applying certain efficiency requirements on the natural gas industry; --creating energy efficiency standards for appliances, and; --exempting EnergyStar appliances from sales taxes. Some of the key parties to the issue have circulated their proposals for the industry, hoping Mr. Strickland will draw from their suggestions. (See Gongwer Ohio Report, August 7, 2007 )