UTILITIES PAY FOR ENERGY INFLUENCE IN OHIO

The inside word is that there can be no progress on Governor Strickland’s bold Renewable Electricity Standard (RES) proposal until this matter is settled and Strickland is confident the state’s Public Utility Commission has control of utility rates when the freeze on them expires next year.

The utility companies' opposition in Ohio brings to mind Jim Walker's point in today's lead post that New Energy in general and the wind industry in particular must educate 200 utilities' boards about their viability if they are to successfully expand.

Strickland is working the power and energy issues vigorously and admirably. Some mention him as a possible Hillary Clinton running mate.

Utilities donate to GOP as bill nears
John McCarthy, October 30, 2007 (AP via Business Week)

WHO
The political action committees of FirstEnergy Corp., American Electric Power Co. and Duke Energy; Dayton Power & Light; Ohio Governor Ted Strickland and some legislative leaders

Governor Strickland wants to expand that 1% to (including nuclear and clean coal) 25% but he's not getting much help from the utilities. (click to enlarge)

WHAT
The utility PACs are spending big money in Ohio to influence legislation governing when and where they can shop for electricity for their customers. The bill requires utility rate plans to be approved by the Public Utilities Commission of Ohio, which could also reject or alter them. The utilities want to purchase electricity from the market unregulated by PUCO.

WHEN
- Governor Strickland has publicly stated his determination to complete the energy legislation by the end of the2007. The bill was passed by the Ohio Senate November 2 and will next be considered the House.
- The issue of utility rates comes to a head in January 2009 when a freeze on the rates of FirstEnergy Corp., American Electric Power Co. and Duke Energy ends. Dayton Power & Light’s rate freeze ends in January 2010.

WHERE
- The action is Columbus, Ohio’s capital city.
- Utilities using market-driven rates in Illinois and Maryland have seen electricity

WHY
- FirstEnergy Corp., American Electric Power Co. and Duke Energy PACs have given $80,250+ to House and Senate campaign funds. FirstEnergy has given $181,550, Duke has doled out $77,950 and AEP, $21,550.
- Also vigorously lobbying the state’s lawmakers are big electricity consumers like big-box retail and factories, creating a “special-interest free-for-all on Capitol Square.”

Rates are expected to remain steady despite the utilities' resistance. (click to enlarge)

QUOTES
- Catherine Turcer, lobbyist, Ohio Citizen Action, on all the lobbying and influence-buying: "That's just a piece of the puzzle. With companies like Procter & Gamble and Wal-Mart, those interests are duking it out…"
- Senate President Bill Harris, Ashland, Republican: "You've seen lots of talk from lots of utility people and they've probably told you they aren't very happy with this bill…We also know utility companies are corporate citizens who provide lots of jobs. There's a balance. Our job is to maintain that balance."
- Karen Tabor, spokeswoman, House Speaker Jon Husted: "Our members vote their own consciences on any number of bills…"
- Keith Dailey, spokesman, Governor Strickland: "The governor continues to believe that it is very important to pass this legislation by the end of the year…The uncertainty may have a harmful impact on the state's ability to attract new business."