OHIO PONDERS COST OF NEW ENERGY

Ohio, like many states, is hashing out the details of its confrontation with the future. Leaders in Washington, D.C., have yet to face the facts. Or are they fighting it out now, behind the scenes, working over the details of their energy bill and global warming legislation?

Renewable Energy in Ohio: What Will It Cost, Who Will Pay?
Stephen Majors, September 26, 2007 (AP via Yahoo Finance)

WHO
Ohio Gov. Ted Strickland, Ohio utilities, Ohio big business, Ohio labor

Many states, many plans. (click to enlarge)

WHAT
Gov. Strickland has proposed a Renewable Electricity Standard (RES) for Ohio. All the mjor players assent to the need to develop renewable resources but debate the cost and who will bear it.

WHEN
Strickland’s RES requires 25% of Ohio electricity to come from renewable and “advanced” energies by 2025.

WHERE
Renewables are wind, solar, biofuels, etc. “Advanced” are nuclear and clean coal.

WHY
- Strickland believes the standard can be met without driving utility bills up. The providers disagree.
- Various studies of various RES programs show varying conclusions.
- An 18-state study (conducted by Lawrence Berkeley National Labs, funded by DOE) shows a median 38c/month bill increase, ranging from a $5/month decrease to a $7/month increase. It depends on the state and the program. 6 states have cost savings; 9 show increases >1%; 2 show rate increases >5%.
Strickland contends the payoff doesn’t come until the renewable and “advanced” energies mature.
- Present costs: Wind – 5c/kilowatt-hour; Coal – 1c to 2c/kilowatt-hour. 87% of Ohio electricity is presently coal. Therefore, the transition could be expensive – until the cost of harm done by fossil fuel emissions becomes part of the calculation.

Some of the plans have driven utility rates up, some have driven rates down. The median change is 38 cents a month. Not much of a price to pay for clean, renewable energy. (click to enlarge)

QUOTES
- Ellen Raines, spokeswoman, utility FirstEnergy: "Renewables certainly have a place, but for customers who struggle to pay an electricity bill every month, we don't think their price should reflect that some people want to have renewables…"
- Keith Dailey, Strickland spokesman: "Over the long term, prices will be more stable, more predictable and competitive if Ohio has diverse sources of energy…[But for the short term] I don't think we know that with certainty."
Mark Weaver, spokesman, Ohio Electric Utility Institute: "Who will pay for the additional cost? I want Ohio consumers to pay more for the same results they are getting now.' I haven't heard the governor say that."
- Janine Migden-Ostrander, Ohio Consumer Counsel: "With time, the cost of supplying fossil fuel ... is going to go up significantly, whereas the price of renewable energy has been coming down from a few years ago…It's going to be a cheaper alternative over time. It's an investment in our future."