Ohio energy legislation: northern Ohio impact

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Energy consumers in Northern Ohio will probably see lower monthly bills, but environmentalists insisting on renewables will not be happy. The Institute for Energy Research reports at the Canada Free Press:

Ohio’s New Energy Bill

Lawmakers in Ohio have chosen to rescue two existing nuclear plants and two existing coal plants in lieu of mandates on renewable energy and energy efficiency, and as a result, lower electricity prices are expected for electricity consumers. Renewable energy will have to enter the market on its own merits once renewable energy reaches 8.5 percent of electricity generated in the state—up from about 3 percent today—and once federal subsidies expire. Residential charges will be lowered by over $2.00 per month by the legislative change and grid reliability is expected to be enhanced. The Ohio bill is contrary to what most states are doing and it will be an interesting exercise to contrast future electricity prices here and in surrounding states that are continuing their renewable mandates and forcing new capital expenditures because of mandates and subsidies.

The new law in Ohio subsidizes two nuclear power plants. Residential customers will pay an 85-cent charge on their monthly bills and large industrial customers will pay up to $2,400. The surcharge will produce about $170 million a year; $150 million of that will be used to subsidize the two nuclear power plants‚Äî908 megawatt Davis-Besse, outside of Toledo, and 1,268 megawatt Perry, northeast of Cleveland, which will close within two years without the subsidy. The remaining $20 million will be divided between six existing solar projects in rural areas of the state. The subsidies are approved through 2026 and would total about $1 billion. The charge will start January 2021. Nuclear power accounts for 15 percent of the state’s energy generation and generates 85 percent of its carbon-free energy.

Read the rest here.

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