house public utilities committee briefing september 29, 2011 presented by staff of the public...
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House Public Utilities Committee Briefing September 29, 2011 Presented by Staff of the Public Utilities Commission of Ohio Jodi Bair, Director, Utilities Beth Trombold, Director, Economic Development and Public Affairs Kim Wissman, Director, Energy and Environment. Overview of Electric Grid. - PowerPoint PPT PresentationTRANSCRIPT
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House Public Utilities Committee BriefingSeptember 29, 2011
Presented byStaff of the Public Utilities Commission of Ohio
Jodi Bair, Director, UtilitiesBeth Trombold, Director, Economic Development and Public Affairs
Kim Wissman, Director, Energy and Environment
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Overview of Electric Grid
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Renewables - 1%
Petroleum - 1%
Natural gas - 2%
Nuclear - 10%
Coal - 86%
Ohio’s Electric Generation Resource Mix
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Initiating a Rate Case
6
Why? • By a company to obtain more revenue; by a customer through a
complaint case; or by the PUCO through a Commission Ordered Investigation (COI)
How? • Company makes a Pre-Filing Notice (PFN) and informs mayors
and legislative bodies 30 days before filing the full application at the Commission
• Application filed no earlier than 30 days after the PFN – Companyhas the burden of proof in the request for an increase in rates
• Company files work papers, testimony and a set of proposed rates• Company publishes notice once a week for 2 weeks in newspapers
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Rate Case Steps
7
• Staff investigates the company’s expenses, revenues and investment
– Revenue Requirement – the amount of money that allows the company to cover expenses and earn a fair return on investment
– Rate Design – how the revenue be collected from the various classes (residential, commercial, industrial) and based upon cost-of-service (i.e. the charge levied against a customer is proportional to the expense of service to the customer)
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Rate Case Procedure
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• Staff Report is filed - usually within 5 months of the application. (not a statutory timeline)
• Objections to the Staff report must be filed within 30 days. (supported by testimony)
• Objections & Testimony frame the issues – if not objected to, then Staff report carries the burden
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The Parties to a Rate Case
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• The Attorney General’s office represents the PUCO Staff in the hearing and /or negotiations
• Office of Consumer’s Counsel (state agency representing residential consumers)
• Commercial customers
• Industrial customers
• Cities
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Rate Case Hearings
10
• Publish notice of upcoming hearings • Two types of hearings:
1. Public Hearing: the public gets to hear about the proposed rate change an make comments. Public hearings are held in the communities affected by the application.
2. Evidentiary Hearing: an attorney examiner presides and witnesses testify to support their positions and are subject to cross-examination from other parties. PUCO staff testify at the evidentiary hearing in support of the staff report.
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After the Hearings
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• Parties file briefs with the Commission within a time established by the PUCO attorney examiner. Usually file initial briefs and reply briefs.
• PUCO attorney examiner writes an order and circulates it to the Commissioners. The Commissioners provide input and vote on the order at a commission meeting. PUCO Order is issued within 275 days of the application filing otherwise the company can put requested rates into effect subject to refund.
• Applications for Rehearing must be filed within 30 days. Any issue appealed to the Ohio Supreme Court must be raised in the application for rehearing
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Appeal of Commission Order
12
• Appealing party must file a notice of appeal with the Ohio Supreme Court within 60 days of the date of denial of the application for rehearing by the Commission.
• No deadline in which the Court must act; however, the Court must hear PUCO appeals. Most appeals to the Ohio Supreme Court are discretionary – the court chooses what it will hear.
• Court can affirm/agree with the Commission order. Court can reverse the PUCO decision. Court can reverse and remand to the Commission
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Rate Case Timeline • Month 1 – Commission accepts the filing/application within 30
days, establishes test year & Staff investigation begins• Month 5 – Staff Report filed• Month 6 – Objections to Staff report filed within 30 days (with
supporting testimony)• Months 7 & 8 – Local public hearing & evidentiary hearing
completed• Briefs filed• Month 9 – Commission issues decision (275 days)• Applications for Rehearing before Commission• Appeal to Ohio Supreme Court
13
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1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
5/1/08
Gov. Strickland signs SB 221
9/08 - 4/09
PUCO develops and adopts SB 221 rules
12/08 - 3/09
PUCO approves initial Electric Security Plans (ESP)
Electric Restructuring Timeline
3/26/98
HB 732 (Mead) and SB 237 (Johnson) introduced. Both bills die in committee
1/1/99
SB 3 (Johnson) and HB 5 (Mead) introduced
7/6/99
Gov. Taft signs SB 3, bill takes effect 10/5
1/1/01
Ohio Electric Choice begins
1/01 - 12/05
SB 3 Market Development Period 9/25/07
SB 221 (Schuler) introduced
1/1/06
Rate Stabilization Plans take effect
12/31/05
Recovery of generation stranded costs ends
12/31/10
Recovery of regulatory stranded costs ends
12/31/08
Rate Stabilization Plans expire
8/25/10 PUCO approves FirstEnergy ESP 2
7/31/08
SB 221 takes effect
3/96
HB 653 (Amstutz) introduced.
10/02 – 1/05
PUCO approves Rate Stabilization Plans
7/00 - 10/00
PUCO adopts transition plans for electric utilities
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Why Regulation?• Electricity has historically been considered a “natural
monopoly.”
• Entry into this market required huge investments in infrastructure.
• Electricity was considered a “public good.”
• Very few people could make the investment to get into the electric business and those who did could take advantage of the monopoly.
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FERC Order 888 (1996) andOrder 2000 (1999)
• Determined the public interest would be best served by a competitive wholesale market
• Provided for non-discriminatory and open-access on the transmission system
• Required transmission owners to join an Independent System Operator
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History of Electric Restructuringin Ohio
Senate Bill 3A 1999 law effective January 2001 restructured Ohio’s electric industry• allowed customers to shop for electricity• provided a five-year market development period
Turn of the Century System• Unbundling of vertically integrated system• Customers served by generator of choice• Transmission and distribution remain regulated• For generation, the rate of return system of regulation
replaced by competition
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Issues Under Restructuring• Unbundling
• Market Power
• Transitional Issues
• Independent System Operation
• Social Issues
• Environmental Issues
• Taxes
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Generation (“or supply”)Shop for this
Transmission Remains regulated by FERC
Distribution Remains regulated by PUCO and provided by your local utility
Unbundling
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“Bundled” Rates• Rates were previously a
“bundle” of costs for different services.– Generation– Transmission– Distribution– Ancillary Services– Specific Surcharges To
tal R
ates
Specific Surcharges
Generation
Transmission
Distribution
Ancillary Services
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“Unbundled” Rates
Ancillary Services
Generation
TransmissionDistribution
Specific SurchargesTota
l Rat
es
Electric Restructuring would “unbundle” the rates so the generation component could be shopped for, and priced at “market.” The bill anticipated that market rates would be lower than regulated rates.
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Transitional IssuesTemporary issues pertaining only to the period of transition from a regulated to a competitive industry.
Timing How soon full competition can begin
Stranded CostsProduction
Regulatory
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Social Issues Universal Service
Provider of Last Resort
Low Income Programs
Consumer Education
Metering & Billing
Unfair & Deceptive Practices• Price Disclosure• Slamming• Cramming
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Focus Regulatory Shift to Market Monitoring & Development
The ability to control prices and product qualityVertical
A vertically integrated company favors its own or an affiliates generation over alternatives through non-price barriers.A single supplier or group of suppliers has a strategic advantage in terms of access to customers relative to other suppliers.
HorizontalA single supplier or group of suppliers has undue influence on the price of the product due to concentration of market share that can be used strategically.
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Market Development Period• 5 year market development period during
which time rates are frozen
• Local utility delivers electricity and maintains infrastructure
• Utility is default supplier
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Suppliers must be certified for consumer protection
• PUCO certifies all electric suppliers
• Suppliers are reviewed for:– technical capabilities – financial capabilities– managerial capabilities
• Ensures these companies are qualified to do business in Ohio
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Governmental Aggregation: the power of group buying
Ohio Electric Choice allowed for local governments to join all of the customers in a community into a single buying group.
• Most cases “opt-out” is used
• Community passes a ballot issue
• Everyone in community automatically enrolled and a supplier is chosen for the group
• Everyone given a chance to “opt-out” or say you don’t want to participate
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What happened during the Market Development Period?
• Initial results early during the period showed significant “switching” in some service territories primarily due to high costs in the northern part of Ohio.
• Governmental aggregation was the success story in Ohio.
• The moderate-to-low priced utilities experienced little, if any, customer switching.
• The success of government aggregation aside, it was apparent that a fully competitive market had not developed as quickly as envisioned by lawmakers in Senate Bill 3.
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PLUS...Many other things happened during the
5-year Market Development Period
• The California crisis and Enron scandals
• Extreme volatility and upward movement of market prices (due to rising gas prices, rising coal prices, and construction facilities not matching the projected increases in demand)
• And the slower than expected development of Independent System Operators for the transmission systems
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Ohio Electric Choice The move to Rate Stabilization Plans
• As the end of the market development period neared, there were a limited number of competitive electric suppliers and low degree of market activity. Therefore, there was concern that an immediate shift to market-based rates in 2006 would not be in the best interest of customers .
• To avoid rate “sticker shock” and gradually transition customers to market-based rates, the PUCO worked with Ohio’s electric utilities and stakeholders to develop Rate Stabilization Plans (RSPs).
• Most Rate Stabilization Plans lasted through 2008.
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“Energy, Jobs and Progress Plan” September 2007
• The plan was a comprehensive, long-term approach to the challenges of supplying reliable and affordable power.
• It also had to address the approaching expiration of the Rate Stabilization Plans.
• Attract energy jobs of the future through an Ohio advanced energy portfolio standard.
• Ensure affordable and stable energy prices to protect Ohio consumers and existing Ohio jobs.
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Middle-ground Approach to Electricity Regulation
• Evidence demonstrated few competitive options existed at the retail level.
• Did not close the door on market pricing, but required a demonstration that competition is effective.
• Action was necessary to secure Ohio’s energy future.• PUCO can set rates and allow utilities to recoup the cost for new
generation and modernization of the electric system.
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S.B. 221 Policy Principles• Availability of adequate, reliable, safe, efficient,
nondiscriminatory and reasonably priced retail electric service
• Diversity of electricity supplies and suppliers• Encourage innovation and market access for cost-effective
supply- and demand-side retail electric service• Transmission and distribution availability• Recognize continuing emergence of competitive electricity
market through development and implementation of flexible regulatory treatment
• Provide coherent, transparent means of giving appropriate incentives to technologies that can adapt successfully to potential environmental mandates
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Reasonable ArrangementsSection 4905.31
To facilitate the state's effectiveness in the global economy, promote job growth and retention in the state, ensure the availability of reasonably priced electric service, promote energy efficiency and provide a means of giving appropriate incentives to technologies that can adapt successfully to environmental mandates.
Filed by: • company, OR• mercantile customer
Provides Flexibility
Cost recovery for:• economic development/job
retention• revenue foregone from peak
demand reduction/energy efficiency programs
• advanced metering/meter replacement
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Infrastructure Investment• Independent power producer can build
• ORC Section 4928.143 -- Allows distribution utility to get rate recovery for building/owning generation dedicated to Ohio consumers
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Ohio Alternative Energy Portfolio Standard
25% by 2025 • 25% of retail electricity sold by:
– Ohio’s electric distribution utilities – American Electric Power, Dayton Power & Light, Duke Energy, and First Energy, or;
– Competitive electric service companies
• Must be generated from alternative sources: – Renewable energy sources– Advanced energy technology
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SB 22125% (of total kWh) by 2025• Half may be from advanced energy resources• At least half from renewable, .5% solar• At least half of renewable through facilities
located in the state, remainder deliverable• Compliance payments/forfeitures• Cost of compliance not to exceed three percent
of otherwise acquired
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RPS Policies
Renewable portfolio standardRenewable portfolio goal
www.dsireusa.org / September 2011
Solar water heating eligible *† Extra credit for solar or customer-sited renewablesIncludes non-renewable alternative resources
Minimum solar or customer-sited requirement
UT: 20% by 202*
DC
29 states + DC and PR have an RPS(8 states have
goals)
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RPS Policies with Solar/DG Provisions
Renewable portfolio standard with solar / distributed generation (DG) provision
Renewable portfolio goal with solar / DG provision
www.dsireusa.org / September 2011
Solar water heating counts toward solar / DG provision
TX: double credit for non-wind
(non-wind goal: 500 MW)
DC
†
†
Delaware allows certain fuel cell systems to qualify for the PV carve-out
16 states + DC have an RPS with solar/DG provisions
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Solar Wind
Geothermal Fuel Cells Storage Biomass
Hydroelectric
Qualified Renewable Resources
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By end of year
Renewable Energy
Solar Energy
2009 0.25% 0.004%2010 0.5% 0.01%2011 1% 0.03%2012 1.5% 0.06%2013 2% 0.09%2014 2.5% 0.12%2015 3.5% 0.15%2016 4.5% 0.18%2017 5.5% 0.22%2018 6.5% 0.26%2019 7.5% 0.3%2020 8.5% 0.34%2021 9.5% 0.38%2022 10.5% 0.42%2023 11.5% 0.46%
2024 + 12.5% 0.5%
Benchmarks
0%
2%
4%
6%
8%
10%
12%
2009
2011
2013
2015
2017
2019
2021
2023
RenewableSolar
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Alternative Energy Benchmarks (including advanced)
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Renewable Energy Credits• New Ohio Renewable Energy Credit (REC) trading market
created by new law in 2009• 1 REC = 1 mWh of electricity generated• Utilities may own renewable facilities or purchase RECs to
meet the renewable portion of the standard• PUCO certifies resources; established tracking systems will
issue and track RECs• RECs have a 5-year lifetime following their acquisition• Energy and RECs may be sold as separate commodities
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PenaltiesUtilities and electric service companies subject to compliance payments if annual renewable and solar benchmarks are not met.
Non Solar:• Started at $45/mWh in 2009• 2011 penalty payment is $45.93
Solar:• $450/mWh in 2009 and declines over time• 2011 penalty payment is $400/mWH for solar
Exceptions: force majeure; 3% cost cap
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Certification Application• REN certification is not mandatory for any renewable project, but
necessary to create RECs eligible for Ohio utility compliance• No fee to apply• May certify facilities prior to commercial operation • Application will focus on:
– Resource/technology utilized– Placed in-service date– Deliverability to the state
• One-time review (unless significant change to facility in future)• Interested person may seek intervention and request hearing on
certification• Certification status will be conveyed to applicable attribute tracking
system
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YEAR FILINGS
2009 186
2010 1,072
2011 (as of 9/23) 2,608
TOTAL: 3,866
REN Applications Received
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CERTIFIED RENEWABLE TOTALS
RESOURCE CERTIFIED FACILITIES CERTIFIED CAPACITY (MW)
TOTALS OHIO CONTIGUOUS TOTALS OHIO CONTIGUOUS
BIOGAS - ANAEROBIC DIGESTION 5 3 2 5.2 3.5 1.8
BIOGAS - FOOD PROCESSING 3 3 0 2.5 2.5 0
BIOGAS - LANDFILL GAS 32 9 23 342.6 107.8 234.8
BIOMASS - WASTEWATER TREATMENT 1 1 0 0.3 0.34 0
BIOMASS - WOOD WASTE 1 1 0 177 177 0
BIOMASS - PAPER MANUFACTURING 4 3 1**COFIRING**
BIOMASS - UTILITY SCALE COFIRING 6 6 0
COAL MINE METHANE 1 1 0 49 49 0
HYDROELECTRIC 3 1 2 123 1.1 122
SOLAR PHOTOVOLTAIC 3,190 416 2,774 106 36.1 69.6
SOLID WASTE 3 2 1 98 42.8 55
WIND 34 17 17 2,041 13.9 2,027.2
TOTALS: 3,283 463 2,820 2,944.3 434 2,510.4
current through 9/26/2011
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Wind Momentum
Federal PTC (Production Tax Credit)
State Renewable Portfolio Standards (RPS)
Technological Improvements
Price Volatility for Other Fuels (i.e., Natural Gas)
Interest in Green Power / Clean Energy Sources
Climate Change / Energy Independence
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Wind farms in Ohio can help provide renewable resources to meet Ohio’s Alternative Energy Portfolio Standards
But Also:A small wind generator owned by a retail customer may enable the customer to use a renewable resource to offset his electrical demand and potentially earn a credit for net metering on his electric bill.
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Qualified Biomass Resources• Biogas: landfill methane gas or anaerobic digestion
of organic materials such as animal waste, bio-solids, food waste, agricultural crops and residues, solid waste
• Agricultural crops, tree crops, crop by-products and residues
• Wood and paper manufacturing waste• Forestry or vegetation waste• Algae
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Utility-scale biomass projects
• 9 utility applications filed for plants using biomass or biomass co-fired with coal or pet coke
• 1 private 200 MW (2012) plant certified
• Utility RFP’s have been issued for biomass fuel
• Ohio Solid Biofuel Working Group to promote fuel supply development
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Advanced Energy Resources• Clean coal• Nuclear• Fuel cells• Customer Co-generation• Advanced solid waste conversion• Utility generation plant or demand-side
management efficiency measures• RECs not created from advanced
resources
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Energy Efficiency and Demand Reduction Benchmarks - SB 221 (OAC 4901:1-39)
• Establishes requirements and processes to determine specific benchmarks for energy efficiency and peak reduction programs
• Establishes energy usage and demand baselines for measuring annual energy savings and demand reductions
• Provides mechanisms by which investments achieve energy savings and demand reductions by mercantile customers in their own facilities and can be recognized in electric utility programs as contributing to specific levels of energy savings and demand reductions.
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Energy Efficiency Resource Standardswww.dsireusa.org / September 2011
Energy efficiency resource goalEnergy efficiency resource standard
DE
Policy includes natural gas savings requirements or goalsNote: See following slide for a brief summary of policy details. For more details on EERS policies, see www.dsireusa.org and www.aceee.org/topics/eers.
20 states have an EERS(5 states have
goals)
MA, RI
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Electricity Consumption in Investor-Owned Electric Utility Service Areas in Ohio
October 2008 – December 2009
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Energy Efficiency Requirement
• 22% + Reduction by 2025• Could result in annual
usage at 13.8 million mWh below 2007
Peak Demand Reduction Standard
• 7.75% by 2018• Tariffs and special
contracts available to commit the demand reduction
• Customers enrolled in RTO demand response programs are counted if customer commits the peak demand reduction
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Peak Demand Reduction and Energy Efficiency Benchmarks
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Peak Demand Reduction and Energy Efficiency Benchmarks
Each Electric Distribution Utility filed a report identifying the 2009 baselines and benchmarks
Each Electric Distribution Utility filed a program portfolio plan for energy efficiency and peak reduction programs
Upon approval of the program portfolio plan, an Electric distribution utility may seek cost recovery
Each year, on April 15th, the Electric Distribution utility must file a portfolio status report that demonstrates its compliance status with its benchmarks and provides an assessment of its performance.
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Mercantile Customer Applicationsto commit Energy Efficiency and
Peak Demand ReductionOhio Administrative Code 4901:1-39-05(F) Permits a mercantile customer to file individually or jointly with
an electric utility, an application to commit the customer’s existing demand reduction, demand response, and energy efficiency programs for integration with the utility’s program
Expectation the mercantile customers were to be exempt from the EE/PDR Rider of the tariff they are taking service
Pilot Program adopted by the Commission for ease of application and administration
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* As of 9/28/2011
Total filed to date* 826Approved 714Suspended 23Pending 78Denied 11
Energy Efficiency Mercantile Applications
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Ohio EDU 2009 & 2010 Requirements and Performance under the Energy Efficiency and Peak Demand Reduction program requirements, ORC 4928.66Note: Contents based on Companies' annual compliance filings - numbers may be adjusted following Commission review & decision
2009 Energy Efficiency Requirement Peak Demand Reduction RequirementObligation (MWHs) Performance (MWHs) Obligation (MWs) Performance (MWs)
* AEP-Ohio Columbus Southern Power 60,000 121,000 40 24Ohio Power 77,000 132,000 46 366Total AEP - Ohio 137,000 253,000 86 390
Dayton Power & Light 43,919 40,442 29.6 168.4
Duke - Ohio 68,233 293,023 44.6 97.4
** First Energy Cleveland Electric Illuminating 58,155 207,795 42 72.1Ohio Edison Company 76,783 102,933 53 73.5Toledo Edison Company 31,349 39,921 20 150.3Total FE (Ohio EDUs) 166,287 350,649 115 295.9
EDU TOTALS 415,439 937,114 274.7 951.7
2010Obligation (MWHs) Performance (MWHs) Obligation (MWs) Performance (MWs)
AEP-Ohio Columbus Southern Power 104,000 163,000 71 122Ohio Power 124,000 143,000 81 382Total AEP-Ohio 228,000 306,000 152 504
Dayton Power & Light 71,717 101,061 50.3 74.6
Duke - Ohio 109,536 310,755 33.2 40.2
** First Energy Cleveland Electric Illuminating 150,576 273,076 71.7 71.7Ohio Edison Company 197,959 164,365 90.2 73.3Toledo Edison Company 81,204 129,964 35.2 148.9Total FE (Ohio EDUs) 429,739 567,405 197.1 293.9
EDU TOTALS 838,992 1,285,221 432.6 912.7
* Utility reports that PDR Obligation (benchmark) has been met because actual peak demand did not exceed baseline minus 1%.** 2009 Energy Efficiency Obligations (Benchmarks) were amended to zero by Commission order. 2009 and 2010 performance values include projects not yet approved by the Commission. Ohio Edison 2010 benchmarks were amended to actual levels achieved.
Energy Efficiency Requirement Peak Demand Reduction Requirement
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40+ Electric Suppliers in Ohio• AEP Retail Energy• AK Electric Supply LLC• Algonquin Energy Services, Inc.• American PowerNet Management LP• APN StarFirst LP• ARCELORMITTAL USA LLC• Blue Pilot Energy, LLC• BlueStar Energy Solutions• Border Energy Electric Services, Inc.• Champion Energy Services, LLC• CINCINNATI BELL ENERGY PA LLC• Commerce Energy Inc.• Constellation NewEnergy, Inc.• Direct Energy Business, LLC• Direct Energy Services, LLC• DOMINION RETAIL INC• DPL Energy Resources, Inc.• Duke Energy Retail Sales, LLC• Eagle Energy, LLC• Energy Plus Holdings, LLC• Exelon Energy Company• FirstEnergy Solutions Corp.
• Gateway Energy Services Corporation• GDF Suez Energy Resources NA, Inc.• GearyEnergy, LLC• Glacial Energy of Ohio, Inc.• Hess Corporation• Integrys Energy Services, Inc.• Liberty Power Delaware, LLC• Liberty Power Holdings, LLC• Linde Energy Services, Inc.• MC SQUARED ENERGY SERVICES LLC• MidAmerican Energy Company• NextEra Energy Services Ohio, LLC• Noble Americas Energy Solutions LLC• NOPEC, Inc.• Palmco Energy OH, LLC• SMART Papers Holdings, LLC• Spark Energy, L.P.• STARION ENERGY PA INC• TEXAS RETAIL ENERGY LLC• Vectren Retail, LLC
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INSERT Switching STATS
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Things that haven’t changed: • Same safe, reliable service.• Local utility still delivers the electricity.• Local utility still maintains the poles and wires.• Still call your local utility in case of a power outage.• Still get service even if choose not to change.• Low income programs like PIPP continue.
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Ohio Power Siting Board
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To support sound energy policies that provide for the installation of energy capacity and transmission infrastructure for the benefit of the Ohio citizens,
promoting the state’s economic interests, and protecting the environment and land use.
Ohio Power Siting BoardMission Statement
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Ohio Power Siting BoardMember Agencies
• Public Utilities Commission of Ohio - Chairman• Ohio Environmental Protection Agency• Ohio Department of Development• Ohio Department of Health• Ohio Department of Natural Resources• Ohio Department of Agriculture• Public Member• Four Legislative Members
– 2 from Ohio House of Representatives– 2 from the Ohio Senate
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OPSB Jurisdiction
Definition of “Major Utility Facility:”• A generating plant of 50 megawatts or more
• An electric transmission line of 125 kilovolts or greater
• A gas or natural gas transmission line capable of transporting gas at or greater than 125 pounds per square inch of pressure
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HB 562 (2008)
• More recently, the passage of in 2008, gave the Board additional oversight regarding commercial wind farms
• Wind facilities greater than 5 MW
• This bill also directed the Board to adopt certification rules for the construction, operation and maintenance of wind-powered electric generation facilities
• The rules outline requirements for aesthetics, setback, noise levels, ice throw, blade sheer and shadow flicker
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OPSB Process• Pre-Application meetings • Pre-Application Public Informational meeting• Application submitted• Completeness Review (no more than 60 days)• Letter of Completeness• Proof of Service• Board Entry establishing Filing Date & Hearing schedule Public
Notice published by Applicant• Staff Report (15 days prior to public hearing)• Public Hearing (no less than 60 nor more than 90 days from filing)• Adjudicatory Hearing (within days of public hearing)• Board Decision• Appeal Process (30 days for rehearing filing from Board decision,
30 days for Board decision on rehearing, 60 days for any Appeal to Ohio Supreme Court)
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OPSB Decision• The need for the (transmission) facility• The probable environmental impact• Whether the facility represents the minimum adverse
environmental impact considering the technology that is available and the nature and economics of the various alternatives
• Compliance with all air and water pollution control and solid waste disposal laws and regulations
• Consistent with regional plans for expansion of the electric power grid, and the interests of electric system economy and reliability
• Public interest, convenience and necessity• Impact on agricultural lands• Water conservation practices
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OPSB Summary • One-Stop Siting Process• Timely action: Approximately 6 to 12 months for applications, with
statutory time mandates; even more expedited schedules may be an option under certain circumstances
• Regulatory certainty: process is known and well practiced• Sole jurisdiction: local and public participation welcome in the
process, but sole decision rests with the state (OPSB)• Our siting process is fair and efficient and has been put forth as an
example for others to follow• Having seen our success, several states and countries have
adopted new siting legislation modeled after Ohio’s statute
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OPSB TRANSMISSION APPLICATIONS (1998-2011)
ELECTRIC TRANSMISSION SUMMARY
Number Of Cases Miles Estimated Costs
Certified - Operational 11 71.7 $40,825,000
Certified - Not Yet Online 6 36.0 $58,200,000
Certification Pending 4 66.9 $8,558,400
TRANSMISSION LINE TOTALS: 21 174.6 $107,583,400
VOLTAGE LEVEL STATS (kV) Number Of Cases Miles Estimated CostsACTIVE
138 17 133.2 $83,712,400
345 4 41.4 $23,871,000
765 - - -
GAS TRANSMISSION SUMMARY
Number Of Cases Miles Estimated Costs
Certified - Operational 13 109.4 $125,095,623
Certified - Not Yet Online - - -
Certification Pending 3 241.5 $559,944,714
TRANSMISSION LINE TOTALS: 16 350.85 $685,040,337
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OPSB CONSTRUCTION NOTICES/LETTERs OF NOTIFICATIONS (1998-2011)
ELECTRIC LETTER OF NOTIFICATIONS Number Of Cases Miles Estimated Costs
Operational, Completed 170 138.1 $124,332,728 Not Yet Completed 19 27.6 $30,170,096
TOTALS: 189 165.7 $154,502,824
ELECTRIC CONSTRUCTION NOTICES Number Of Cases Estimated Costs
Operational, Completed 74 $71,748,886 Not Yet Completed 9 $71,748,886
TOTALS: 83 $143,497,772
GAS LETTER OF NOTIFICATIONS Number Of Cases Miles Estimated CostsOperational, Completed 13 156.7 $125,095,623
Not Yet Completed 5 6.0 - TOTALS: 18 162.7 $125,095,623
GAS CONSTRUCTION NOTICES Number Of Cases Estimated CostsOperational, Completed 69 $56,779,585
Not Yet Completed 15 $19,886,000 TOTALS: 84 $76,665,585
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OPSB ELECTRIC GENERATION APPLICATIONS (1998-2011)
GENERATION SUMMARY
Number Of Cases Capacity (MW) Estimated Costs
Certified - Operational 16 7,460 $2,951,633,700
Certified - Not Yet Online 18 7,229 $8,223,870,497
Certification Pending 9 1,653 $1,195,000,000
GENERATION TOTALS: 43 16,342 $12,370,504,197
GENERATION CASES BY FACILITY TYPE Number Of Active Cases Capacity (MW) Estimated Costs
Coal (i.e. IGCC) 4 2,169 $3,974,400,000
Cogeneration-Waste Heat 4 405 $524,831,197 Combined-Cycle 6 4,797 $1,571,000,000
Compressed Air 1 2,700 $1,650,000,000
Simple-Cycle 11 4,525 $1,537,190,000
Wind 17 1,746 $3,113,083,000
FACILITY TOTALS: 43 16,342 $12,370,504,197