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OHA - The Ohio Hospital Association

Ohio Energy Deregulation and Opportunities
Natural Gas    Electricity

SB 221 Rate Cases  Settled
S.B. 221 took effect in July 2008 and resulted in the filing of electric rate cases by Ohio’s four major electric utilities. The bill required Ohio’s electric utilities to either file “electric security plans” that would establish somewhat cost-based rates, or permit the utilities to file “market option plans” in which rates would move to market-based rates. 

The PUCO issued rules as required by SB 221, although some of the rules are not final.  The rules and comments filed by parties can be found on the PUCO website at www.puco.ohio.gov/.  AEP, Dayton Power and Light, Duke Energy Ohio, and FirstEnergy filed proposals during the second half of 2008, and those cases have been resolved except for some issues still before the Commission. The focus under SB 221 has shifted to reducing hospital electricity demand through energy efficiency and demand response, for which hospitals—depending upon the program offered by their utility—may be able to avoid an energy efficiency rider (cost-avoidance) or obtain other financial incentives (rebates) for energy efficiency projects.  See the following links for more information.

         American Electric Power application
         o
     AEP energy efficiency subsidies Web site
         o     PUCO Order adopting Electric Security Plan
         o     June 30, 2009 Webinar
         o     July 29, 2009 AEP slides

      Duke Energy Ohio application: 
     
         o
     PUCO Order adopting Electric Security Plan
         o     Duke Energy Ohio energy efficiency Web site

        FirstEnergy application:
        
o   Settlement
         
o   Settlement summary by Bricker & Eckler
         o   Overview of energy collaborative
         o   FirstEnergy energy efficiency subsidies Web site

         o   FirstEnergy efficiency/demand response Administrator Form

       Dayton Power and Light application: 
         o  DP&L energy efficiency programs
         o  Settlement

         o  PUCO Order adopted DP&L settlement
            Energy rebate slides from 8/25/09 DP&L meeting

                                                       

Background
OHA has been active in energy issues dating to at least the 1970s energy crisis, when it obtained a government grant to assist hospitals with energy conservation projects. OHA remains active in energy conservation through its support of the U.S. EPA Energy Star program and related conservation and pollution prevention efforts in Ohio.

OHA formed a natural gas purchasing group in 1998, and restructured its natural gas program in 2004.  OHA's  endorsed natural gas supplier has been Stand Energy Corporation since 2004.

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 has been actively involved in implementation of S.B. 221, related PUCO rulemaking, and the electric security plan and market rate offer cases that have been or will be filed with the PUCO.


Natural Gas

OHA has had a natural gas program since 1998. OHA's energy committee selected Stand Energy Corporation based on its reputation, familiarity with hospital operations, pricing and willingness to use OHA's Master Agreement. Hospitals are invited to contact OHA or Stand Energy Company for further information. At Stand Energy Corporation, contact Stacee Dover or Terri Leach at 800-598-2046 or OHA@stand-energy.com. Contact Rick Sites at OHA if your hospital is interested in a free comparison of natural gas supply offers.

Electric Utilities

Energy Market and Related News
 

Weekly Stand Energy Natural Gas Update
OHA’s endorsed natural gas supplier issues a weekly update to its customers.

Winter 2009-2010 Forecast
The National Weather Service (NOAA) is forecasting above normal temperatures and below normal precipitation for the Ohio region during the coming winter.  Temperatures and precipitation are expected to be normal this fall.

Hurricane seasons becoming more active
Research at Penn State concludes that hurricane seasons are becoming more active and storms more intense.  Researchers reached that conclusion by studying sediment samples and computer models measuring hurricane seasons during the past 1,500 years.  That study found high levels of storms and intensity about 1,000 years ago followed by lower activity.

Colorado State University Lowers Hurricane Prediction
Hurricane forecasters at Colorado State University in early June lowered its prediction for the Atlantic hurricane season to below that expected for an average season.  Because of cooler-than-normal ocean temperatures and a better chance for a weak El Nino for a large portion of the season, CSU’s William Gray and Phil Klotzbach now forecast 11 named storms (down from 14) through Nov. 30.  Five of those will become hurricanes, with two predicted to be major ones.  The CSU team estimates a 28% chance a hurricane will strike the East or Gulf Coast—below the average.

Global Warming Report: Lots of Precipitation
Environment America issued a report in early December that finds climate change throughout the United States.  As applicable to Ohio, the report finds that "extreme precipitation" events have increased during the period beginning in 1948, and that trend is expected to continue.  The report attributes the situation to global warming.  Find the report with maps and tables.

Energy Management Initiatives and Resources

Contact
Rick Sites
General Counsel and Senior Director of Health Policy, Ohio Hospital Association
Executive Director, OHA Solutions and Senior Director of Health Policy
ricks@ohanet.org

© 2001-2009 OHA. Last updated September 03, 2009.
Please direct comments, corrections or additions to: oha@ohanet.org 614.221.7614.