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S. B. No. 58 As IntroducedAs Introduced
130th General Assembly | Regular Session | 2013-2014 |
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A BILL
To review and possibly modify the energy efficiency,
peak demand reduction, and alternative energy
resource provisions established by Ohio law
governing competitive retail electric service.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. (A) As used in this section, "changes in electric
service occurring since 2008" includes the following:
(1) Development of large natural gas resources in Ohio;
(2) Reduced prices for electricity on the wholesale market;
(3) The impact that energy efficiency programs may have had
on depressing wholesale prices in the PJM interconnection regional
transmission organization auction area or improving the
reliability of the electric grid;
(4) Consideration of whether energy efficiency is a least
cost resource and whether it helps offset or defer the cost of new
generation facilities;
(5) Whether the newly-authorized inclusion of combined heat
and power and waste energy recovery in the energy efficiency
standards makes it possible to cost-effectively meet the energy
efficiency benchmarks going forward;
(6) Whether renewable energy resources have helped to depress
wholesale prices in the PJM auction market;
(7) The hedge value of stable long-term renewables contract
prices and the long-term price impact of the low cost of renewable
fuels; and
(8) Whether renewables can offset the cost of new generation
facilities and whether they help to achieve energy independence
from foreign fuel sources.
(B) Given the changes in electric service occurring since
2008, it is the General Assembly's intent to review and possibly
modify the energy efficiency, peak demand reduction, and
alternative energy resource provisions established by Ohio law
governing competitive retail electric service and first enacted in
Am. Sub. S.B. 221 of the 127th General Assembly.
(1) In its review, the General Assembly shall consider
whether:
(a) Energy efficiency and peak demand reduction requirements
under section 4928.66 of the Revised Code should be frozen at a
certain level, amended, or repealed;
(b) Energy efficiency and peak demand reduction requirements
under section 4928.66 of the Revised Code, if amended, should be
reduced or increased;
(c) An electric distribution utility may voluntarily design
an energy efficiency and peak demand reduction plan that purposely
exceeds the minimum requirements established in section 4928.66 of
the Revised Code, and if so, whether the costs of exceeding the
statutory requirements should be a nonbypassable charge that
customers must pay;
(d) The Public Utilities Commission should be granted the
authority to require an electric distribution utility to implement
an energy efficiency and peak demand reduction plan that exceeds
the minimum requirements established in section 4928.66 of the
Revised Code or to require an electric distribution utility to bid
all or part of its projected energy efficiency and peak demand
reduction portfolios into the PJM base residual auction, and if
so, whether the definition of energy efficiency savings in Ohio
law should be consistent with that of PJM;
(e) An electric distribution utility, which designs an energy
efficiency and peak demand reduction plan that exceeds the minimum
requirements established in section 4928.66 of the Revised Code,
should be permitted to implement incentive plans or shared savings
plans that allow it to earn a profit upon exceeding the
requirements established in its energy efficiency and peak demand
reduction plan;
(f) A three per cent cost cap should apply to energy
efficiency and peak demand reduction requirements under section
4928.66 of the Revised Code;
(g) Alternative energy resource requirements under division
(B) of section 4928.64 of the Revised Code should be frozen at a
certain level, amended, or repealed;
(h) Alternative energy resource requirements under division
(B) of section 4928.64 of the Revised Code, if amended, should be
reduced or increased;
(i) The compliance payments under division (C)(2) of section
4928.64 of the Revised Code, including those for failure to meet
solar energy requirements, should be amended or indexed to the
Consumer Price Index;
(j) The three per cent cost cap provisions under division
(C)(3) of section 4928.64 of the Revised Code have been properly
interpreted by the Commission;
(k) The three per cent cost cap under division (C)(3) of
section 4928.64 of the Revised Code should be amended;
(l) Electric distribution utilities and electric services
companies may exceed the three per cent cost cap under division
(C)(3) of section 4928.64 of the Revised Code, and if so, to what
extent, and whether the additional costs may be recovered from
some or all customers and how that may be done;
(m) Ohio's alternative energy resource law should continue to
provide separate requirements for particular forms of energy, such
as solar energy, or whether the law should be changed to apply
equally to all forms of energy, thereby allowing all energy
providers to compete directly;
(n) A portion of the renewable energy resources implemented
by an electric distribution utility or electric services company
should be met, as is currently required under division (B)(3) of
section 4928.64 of the Revised Code, through facilities located in
this state or with resources shown to be deliverable into this
state;
(o) Requirements for advanced energy under section 4928.64 of
the Revised Code are achievable without providing incentives to
meet the capital costs for meeting the advanced energy
requirements or whether these requirements are necessary given the
current low price of electricity and the excess generating
capacity that now exist;
(p) The costs incurred by electric distribution utilities and
electric services companies in complying with the energy
efficiency and peak demand reduction requirements under section
4928.66 of the Revised Code and the alternative energy resource
requirements under division (B) of section 4928.64 of the Revised
Code are bypassable, and if so, to what extent, and whether these
costs should be bypassable or nonbypassable, and if so, to what
extent;
(q) Electric distribution utilities and electric services
companies should be required to provide, as a separate line item
on customer bills, the utility's or company's cost of complying
with the energy efficiency and peak demand reduction requirements
under section 4928.66 of the Revised Code and the alternative
energy resource requirements under division (B) of section 4928.64
of the Revised Code;
(r) A comprehensive cost-benefit analysis of the competitive
retail electric service law, including renewable and advanced
energy requirements, energy efficiency requirements, and peak
demand reduction requirements, should be prepared to determine
whether consumers are deriving sufficient benefits based on how
the benefits and costs are allocated;
(s) The Commission has correctly upheld the intent of Am.
Sub. S.B. 221 of the 127th General Assembly in permitting
incentive programs that have the effect of making certain charges
nonbypassable;
(t) Renewable energy resource providers and energy efficiency
program providers face undue legal barriers to competing more cost
effectively and whether such barriers could be reduced by
implementing programs such as virtual net metering and feed-in
tariffs, facilitating master limited partnerships, decentralizing
portions of the transmission and distribution system by investing
in distributed generation and microgrids, or pursuing other state
efforts to drive down costs of energy efficiency and renewable
energy;
(u) Statutes or administrative rules are needed to permit
more accurate and transparent levelized cost comparisons of the
actual cost of the various fuels available to produce electricity
for this state;
(v) Adequate processes exist to determine whether electric
distribution utilities and electric services companies prudently
purchase energy to fulfill the requirements of the energy
efficiency law and alternative energy resource law; and
(w) The law should be amended to include provisions to
protect the ability of an electric distribution utility or an
electric services company to recover costs committed to or
incurred to comply with mandates and to protect the validity of
contracts made in good faith pursuant to current law, if the
energy efficiency, peak demand reduction, and alternative energy
resource standards are significantly altered or repealed, and if
the law is significantly amended or repealed, to what extent such
protections should be granted.
(C) The General Assembly also shall review the following:
(1) How best to protect ratepayers against future price
changes that may occur if the energy efficiency, peak demand
reduction, and alternative energy resource requirements remain
law;
(2) What the appropriate standards should be for measuring
the amount of energy savings and peak demand reduction that an
electric distribution company achieves in order to determine
whether such savings or reduction may count toward compliance with
the energy efficiency and peak demand reduction requirements under
section 4928.66 of the Revised Code, including whether the
Commission should be directed to do the following:
(a) Clarify that such savings be calculated on an annualized
basis based on gross savings and not just those savings net of
savings attributed to the customer;
(b) Substantially broaden the nature of the energy savings
that may be counted towards compliance with the requirements under
section 4928.66 of the Revised Code as compared to that allowed
under current Commission rules and practice; and
(3) What effects there would be on the Ohio job market and on
planned in-process investments and committed investments in Ohio,
if cost recovery or contract protections as described in division
(B)(1)(w) of this section were established following the
alteration or repeal of the state's energy efficiency, peak demand
reduction, and alternative energy resource standards.
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