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Ohio Energy Deregulation
and Opportunities
SB 221 Enacted, Draft Rules Issued and Rate
Increase Application Filed The PUCO has issued rules as required by SB 221. The rules and comments filed by parties can be found on the PUCO website at www.puco.ohio.gov/. AEP, Duke Energy Ohio and FirstEnergy have filed proposals to increase electric rates beginning in January 2009. Dayton Power and Light Company recently filed an application that will continue the 3% annual increase in its current rate stabilization plan until the end of 2010 but also address other mandates resulting from enactment of SB 221.
American Electric Power application:
Duke
Energy Ohio application:
FirstEnergy application:
Dayton Power and
Light application:
Background OHA formed a natural gas purchasing group in 1998, and restructure its natural gas program in 2004. OHA's current endorsed natural gas supplier is Stand Energy Corporation. OHA has been involved in state electric policy-making since legislation was enacted to deregulate the Ohio electric market in 1999. Since then, OHA has intervened in major electric cases before the Public Utilities Commission of Ohio and negotiated with electric utilities as a part of the regulatory process. OHA will be actively involved in implementation of S.B. 221, related PUCO rulemaking, and the electric security plan and market rate offer cases that will be filed with the PUCO. OHA Energy Committee Pursuant to the committee's recommendation, Tom O'Brien, an attorney with the firm of Bricker & Eckler, prepared the attached document on the topic of line extensions.
Natural Gas Market and Related News Weekly Stand Energy Natural Gas Update Gas Tests $6 There are mixed weather forecasts coming from the private forecasters, some calling for November to be colder than normal especially in the Northeast and others calling for a return to very mild conditions at least over the first two weeks in the month. The majority of these forecasters do call for a colder than normal December. Natural gas storage during the October increased toward the edge of 3.4 tcf with 2 weeks remaining in the injection season. This past year when storage reached its historical level of 3545 bcf going into the winter there were some pretty strong injections reported over the final weeks. The Gulf is still slowly recovering from Gustav and Ike but approx 33% of natural gas and 28% of oil production continue to be shut in mainly due to infrastructure issues to allow product to move onshore. We are still looking at prices that are very favorable compared to historicals. The upper side of resistance for the Nov. '08 contract is $6.47 and it was tested in late October. Demand is the big question as supply still appears to be strong due to so many shale plays in key market areas even with the shut in Gulf gas. (Anne McGregor, October 30) Winter
2008-2009 Forecast GAO Warns of Inadequate DOE R&D
Budget EIA Issues Short Term Energy
Outlook Global Warming Report: Lots of
Precipitation Electricity Market and Related News Demand Response initiatives could lead to significant savings: At a recent Demand Response Symposium, Ohio and Illinois representatives indicated that certain customers could save as much as 25% off electricity costs through effective demand response (DR) programs. DR programs typically focus on curtailing load during peak periods. AMP-Ohio Plans Electric Plant: AMP-Ohio has received initial okay to build a 960-megawatt electric plant in southern Ohio. Construction will begin in 2009 and go online in 2013 according to news accounts. AMP-Ohio says it is building the plant as a hedge against uncontrollable market prices and reliability concerns. More at www.amp-ohio.org/ampgs.php. Deja Vu: Deregulated States Pay More for Electric: A study by Carnegie Mellon found that customers in deregulated states pay 2 to 3 cents per kilowatt hour more than customers in regulated states, according. The study is titled "Electricity Prices and Costs Under Regulation and Restructuring." Strickland Appoints Roberto to PUCO: Governor Strickland has appointed Cheryl Roberto, former director of the City of Columbus Department of Public Utilities, to the Public Utilities Commission of Ohio. Roberto was a policy advisor in Columbus Mayor Coleman’s office prior to heading the public utilities department. Earlier employment included that of assistant city attorney in Columbus, a lawyer in private practice, and as an assistant Ohio attorney general. She graduated from Kent State and the Ohio State University Moritz College of Law. She replaces Commissioner Donald Mason. OHA briefly worked with Roberto in a central Ohio project involving discharge of kitchen grease into public sewers.
Energy Management Initiatives and Resources
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December 03, 2008. |