I’m going to stay positive this Earth Day. I know that’s not what you might expect from me this year, but really, when it comes to America’s shift to cleaner, smarter, advanced energy, there’s reason to be optimistic.
- Business is booming…
The advanced energy industry is booming. This includes everything from solar and wind power, to new energy innovations that are smarter and reduce our reliance on fossil fuels, like energy storage, electric vehicles, energy efficiency, and demand response.
The industry grew 29 percent in the last five years, and last year was worth $200 billion – about the same size as the pharmaceutical industry. Tesla – a sort of poster child for the advanced energy industry – just passed Ford Motor Company and General Motors in market cap. In fact, the company dropped “motors” from its name last year, a simple recognition that it’s far more than a car company. Read More
The Public Utilities Commission of Ohio is still deciding whether to approve bailouts for FirstEnergy’s and Dayton Power & Light’s (DP&L) old, inefficient coal plants. The Ohio-based utilities want their customers to shoulder the costs of keeping these unprofitable coal plants running.
Coal plants aren’t cheap to operate. And as natural gas, wind energy, and solar energy have become increasingly affordable in recent years, coal can’t compete anymore. Moreover, subsidizing coal plants is not just a matter of higher electricity bills. We need to take into account the hidden costs of coal, which we all have to pay. Read More
Also posted in FirstEnergy
Last week, the U.S. inaugurated a new president who has vowed to abandon the landmark Paris climate agreement and roll back bedrock American environmental protections.
But turn to the states and you’ll find a different story, even in the red states that elected President Trump. In fact, Republican governors in the Midwest are prioritizing economic growth and job creation by accelerating investments in energy efficiency and renewable energy. In the few weeks after the election, leaders in Illinois, Ohio, and Michigan have adopted new policies that help tackle climate change and grow the clean energy economy. Read More
Market forces and technology are increasingly making old, dirty power plants uneconomic, which creates an opportunity for clean energy progress and cleaner air. However, outdated rules and entrenched interests can complicate the path to a healthier energy economy, as evidenced by a new settlement in Ohio.
The Public Utilities Commission of Ohio (PUCO) recently approved an American Electric Power (AEP) settlement that contains both promising and discouraging components.
The PUCO decision forces AEP to reconsider its ownership of power-generating plants. Realizing old coal-fired units can no longer compete against newer natural-gas and renewable facilities in deregulated markets, AEP suggests it faces two options, one being to ask Ohio legislators to overturn the state’s deregulation law, allowing AEP to return to the less-risky days of guaranteed profits on any of its power plants.
However, a recent study by Ohio State University and Cleveland State University found that the competition enabled by deregulation allowed Ohio customers, businesses, and industries to save $15 billion on electricity over the past four years and is expected to save the same amount by 2020. If the state were to return to a regulated system, Ohioans could miss out on those billions of savings. Read More
Ohio policymakers are at a crossroads. They can create jobs, grow the economy, cut pollution, and save customers money by rebuilding the state’s renewable and energy efficiency policies, or they can continue to let Ohio fall behind in the clean energy economy.
A little background: In 2014, the Ohio Legislature placed a two-year freeze on the state’s energy efficiency and renewable energy standards as a result of political pressure from Ohio’s largest power company, FirstEnergy, among others. The standards required electric utilities to generate 12.5 percent of electricity sales from renewable sources, as well as reduce energy consumption 22 percent by 2025 through efficiency programs. Since the freeze, Ohio has lost millions of dollars in energy investment and jobs, and lags behind nearly every other state in percentage of renewable energy generated.
Now that the two years are almost up, it’s time for Ohio to decide how to move forward – if at all – on its clean energy standards. Fortunately, according to a new report from Environmental Defense Fund and The Nature Conservancy, there are at least three achievable routes to reinstate the renewable and efficiency standards – each of which would provide substantial economic and health benefits to the state at a value of $3 to $5 billion by 2030. Read More
It’s not usually a good idea to dis federal regulators. FirstEnergy doesn’t seem to care.
Almost two months ago, the Federal Energy Regulatory Commission (FERC) ruled against the Ohio-based utility giant’s request to bail out its uneconomic power plants. FirstEnergy then tweaked its proposal to obtain the same result but, according to its CEO, “without the need for…FERC approval.”
To “FERC-proof” its bailout scheme, FirstEnergy now tries to mockingly call its subsidy a “surcharge” rather than a “power purchase agreement (PPA).” Put another way, by simply changing the wording of the original bailout, the utility’s sleight of hand aims to skirt federal oversight.
Environmental Defense Fund (EDF) is joining the Electric Power Supply Association (EPSA) and others in asking FERC to overturn this end-run attempt – something we’re calling FirstEnergy’s “Virtual PPA.” It’s virtually the same as the original rotten deal, and it’s just as bad for customers, clean air, and markets. Read More
Also posted in FirstEnergy