COLUMBUS — The new chairman of the Public Utilities Commission of Ohio on Tuesday told lawmakers there’s little doubt carbon pollution in the state will spike if the state’s two nuclear power plants are decommissioned.
“You would have most likely a flare-up of natural gas generation technology, because that’s technology that can be built quickly,” Chairman Sam Randazzo said. “It’s the most nimble.”
A former lobbyist who represented major industrial users on utility issues, Mr. Randazzo stressed he wasn’t speaking on behalf of the commission, which decides what costs utilities can pass on to their customers.
The House Energy and Natural Resources Committee is considering House Bill 6, which, when fully implemented, would create an annual pot of more than $300 million, fueled by surcharges on customers’ bills. The proceeds would be used to reward the generation of electricity that emits no or less carbon dioxide into the atmosphere.
The state’s two nuclear plants on the shore of Lake Erie — Davis-Besse about 30 miles east of Toledo and Perry about 40 miles east of Cleveland — are expected to qualify for at least half of that pot. At the same time, the bill would do away with existing mandates that utilities find increasingly more of their power from renewable sources like wind and solar and reduce energy consumption overall.
Critics characterize it as a consumer bailout for the nuclear plants, which have been unable to compete with cheaper and abundant natural gas. Their owner, FirstEnergy Solutions, is in bankruptcy proceedings and has said it will close both if they don’t find a buyer or some market for their more expensive power.
Davis-Besse, the largest employer in Ottawa County, would stop generating power no later than May 31, 2020.
The experience of Germany was repeatedly used as an example of what might happen in Ohio. Germany decommissioned its nuclear plants in favor of an all-renewable strategy. Electricity prices spiked and carbon pollution spiked, in part because of the ramping up of fossil-fuel plants to compensate for when wind and solar faltered.
“If the studies are correct, the Germans must not know how to do this,” Mr. Randazzo said.
Rep. Casey Weinstein (D., Hudson) countered that Germany has a long-term strategy.
“I’m thinking about my kids and what happens 10 to 15 years down the road,” he said. “If we scrap our renewable energy policy, if we scrap our efficiency policies, we set ourselves on a trajectory of increased emissions.”
A coalition opposing the bill, the Ohio Consumers Power Alliance, on Tuesday announced a radio campaign targeting several Republicans, including northwest Ohio Reps. Derek Merrin (R., Monclova Township), Bill Reineke (R., Tiffin), and Craig Riedel (R., Defiance).
A full House vote could come as soon as next week.
In 2020, the bill would impose a monthly surcharge of 50 cents on residential customers’ bills as renewable surcharges transition off their bills. In the second year, the surcharge would be $2.50. Other classes of customers would see higher surcharges, as high as $2,500 a month for big industrial users.
The Ohio Clean Air Program would raise $86 million next year but eventually climb to about $306 million. In the first year, sources of zero-carbon power would qualify for $9 per megawatt hour generated, climbing to $9.25 thereafter.
Supporters note that the removal of current surcharges for the renewable power mandate would result in a net reduction of $1.89 a month for a residential consumer. Opponents counter that customers have experienced even greater savings because of the mandated reduction in energy consumption, mandates that would also go away under the bill.
Wind, solar, and other renewable power could also qualify for the zero-carbon credits.
In testimony submitted to the committee, Mikayla Pieper, executive director of the Paulding Chamber of Commerce, noted wind farms are the top generator of tax revenue in the county.
“The long-term consequences of House Bill 6 is it will stunt economic and job growth in the Buckeye State,” she said. “Ohio needs to encourage, not discourage, renewable energy development, especially as access to renewable energy is often a top site selection priority for Fortune 100 and 500 companies.”
First Published May 7, 2019, 5:22 p.m.
