toledoblade.com --

COLUMBUS - Gov. Ted Strickland's energy proposal calls for Ohio's electric utilities to invest heavily in renewable and advanced energy, but it remains to be seen how much of a hammer the state would swing to make it happen.

The administration has not said what would happen to a utility if it fails to meet the requirement that 25 percent of its power supply come from "advanced energy'' by 2025.

That category would include fuel cell, clean coal, and nuclear technology as well as "green'' sources like solar, wind, hydroelectric, geothermal, and landfill gases.

"We want that standard to be firm, but we also understand that it would be desirable for us to have a kind of flexibility as we move toward achieving that standard,'' Mr. Strickland said.

"I would expect the [Public Utilities Commission of Ohio] to continue to monitor the efforts toward achieving that standard.''

In addition to the broader 25 percent-by-2025-standard, the much-anticipated plan the governor unveiled Wednesday requires at least half of that, or 12.5 percent, to come from renewable sources.

And half of the total advanced energy standard must come from power generated in Ohio.

While most of the discussion about renewable-related job creation has focused on wind power, including an announced $2 million grant yesterday for a Wood County project, Mr. Strickland's plan includes a specific push for solar technology development. That's a nod to the photovoltaic solar panel research going on at the University of Toledo.

"We think it's achievable,'' PUCO Chairman Alan Schriber said. "2025 is a long way off. A lot can happen. We could have 50 percent advanced energy by 2025. On the other hand, if we find there's an economic or technical struggle, we would have the ability to revisit it.''

Utilities and heavy industry oppose making the standard mandatory. Environmental organizations have sought an even stiffer mandate, and have questioned the governor's decision to include nuclear power in the mix.

"Illinois - a state much like Ohio in that it is a large manufacturing state, a big coal state, and a big nuclear state - just passed a renewable energy standard that is 25 percent all clean renewable energy by 2025,'' Erin Bowser of Environment Ohio said.

"It's one of the most aggressive in the country.''

Players on all sides are waiting to see the specific details when the plan is submitted as proposed legislation.

There is some resistance among the Republican-controlled General Assembly about stretching the bar beyond the immediate issue of addressing how Ohio puts some of the electricity deregulation genie back into the bottle to avoid the anticipated rate shock that consumers in some other states have experienced.

Absent a new law, Ohio is set to enter the open-electricity market on Jan. 1, 2009, a market in which true competition has not materialized to maintain downward pressure on prices.

Mr. Strickland said Ohio must resist temptation to separate debate over rates and regulation from advanced and renewable portfolio standards.

"I think that would be a huge mistake,'' he said. "That would be like saying to [Henry] Ford back in 1903, we shouldn't make cars because we have lots of really nice carriages.''

The Ohio Department of Development yesterday approved incentive grants totaling $5 million for two wind-power projects, including one in Wood County.

The JW Great Lakes Wood County Wind Farm will receive $2 million toward production of a wind farm capable of producing 49.5 megawatts, enough electricity to meet the demands of 15,000 homes.

The project is expected to be operational by June 30, 2009.

Contract Jim Provance at:
jprovance@theblade.com,
or 614-221-0496.

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