Latest news with #EnvironmentalLaw&PolicyCenter
Yahoo
2 days ago
- Business
- Yahoo
How sensors, software, and other tech could help Ohio's aging power grid
A new state law will require Ohio utilities and regulators to consider how technology might offer cost-effective options for improving the state's aging electric grid. Ohio's grid, like those in many states, faces rising repair and maintenance costs, growing demand from data centers and other new customers, and increased risks as climate change fuels more frequent severe weather and outages. House Bill 15, signed last month by Republican Gov. Mike DeWine, calls for a focus on software and hardware solutions to boost the safety, reliability, efficiency, and capacity of existing infrastructure. Clean energy advocates are hopeful the investments will also allow the grid to accommodate more renewable energy and battery storage projects, which can suffer costs and delays related to transmission bottlenecks. 'This is a really, really great inclusion in the bill,' said Chris Tavenor, an attorney at the Ohio Environmental Council, an advocacy group. Advanced transmission technologies that utilities must contemplate under HB 15 include things like sensors that allow lines to safely carry more electricity when conditions are favorable, a concept known as dynamic line rating. Digital controllers can remotely adjust the amount of power flowing through different parts of the grid, while topology optimization software can reroute power around congested areas, like a navigation app for electricity. A key benefit of these technologies is that they can be used with existing infrastructure. When wires do need to be replaced, advanced conductors provide an energy-saving option. Those conductors use carbon composites or other materials to carry more electricity with less loss of that energy, compared to traditional wires of similar diameter. A high-tech approach can create space on the grid for more renewable energy to come online. That would lessen the need to run expensive, polluting coal-fired power plants, said Rob Kelter, a senior attorney with the Environmental Law & Policy Center, a legal advocacy organization based in the Midwest. Besides helping to mitigate climate change, less pollution would help people's health as well, Tavenor said. Under HB 15, owners of high-voltage power lines must file annual reports showing which advanced transmission technologies they considered as part of their five-year forecasts. Those companies will also need to identify areas of the grid with congestion, and compare the cost of addressing it with traditional versus advanced technologies. The reports will be available to the public, and interested parties may ask the Public Utilities Commission of Ohio to hold a hearing on whether utilities properly reported transmission information and whether they should be able to recover costs from customers. The Ohio Power Siting Board must also require companies to consider technology solutions before it approves any new transmission projects. Companies would have to file reports and expert testimony to support any decision to forego advanced technologies in favor of conventional projects, Kelter said. Advocacy groups and other stakeholders 'would have a chance to similarly argue that those technologies are available and that they're cost-effective, and that they would be able to alleviate congestion and delay the need for new transmission lines,' Kelter added. The law requires the Public Utilities Commission of Ohio to study the costs and benefits of the various technologies, including how to streamline their deployment. That report will be due by March 1 next year. Some Ohio utilities have already been exploring the potential for advanced transmission technologies. In 2023, AES installed 42 dynamic-line-rating sensors at towers along five transmission lines owned by its Ohio and Indiana utilities. The companies shared early results last year showing that installing the sensors was cheaper and faster than replacing power lines, and using the sensors increased the system's electricity-carrying capacity. American Transmission Systems, a subsidiary of FirstEnergy, is planning to spend nearly $900 million on dozens of transmission projects across Ohio in the coming years. 'We are currently reviewing House Bill 15 and exploring how its provisions around advanced transmission technologies could be integrated into our planning to strengthen the power grid for Ohio customers,' said FirstEnergy spokesperson Lauren Siburkis. Many of the law's potential benefits hinge on how the Ohio Power Siting Board and Public Utilities Commission of Ohio implement its terms when making decisions on siting and electric rates, Tavenor noted. The law's advanced technology provisions only apply to high-voltage parts of the grid that move electricity over long distances. It doesn't require utilities to consider high-tech approaches to improving the local distribution lines that deliver electricity to homes and businesses. So, for example, AEP Ohio won't need to consider advanced transmission technologies in its latest rate case filed on May 30, spokesperson Laura Arenschield said. That's because AEP wants to use the 2.14% increase in base rates to pay for improvements to its local distribution system, not the AEP transmission network. Similarly, the new law won't address grid inequities affecting disadvantaged communities in FirstEnergy's Ohio territory, which the Interstate Renewable Energy Council described in a report released earlier this year. Even so, investments that use existing system capacity more effectively can still promote equity by reducing the need to build all-new transmission lines. Siting such infrastructure 'can be incredibly invasive and inequitable, harming both communities and ecosystems,' said report author Shay Banton, who is a regulatory program engineer and energy justice policy advocate at the Interstate Renewable Energy Council. Building less brand-new transmission can also save consumers money. Ohioans have generally paid for transmission maintenance and upgrades through a 'rider' on their bills. For the average AEP Ohio consumer, that extra charge is roughly $40 per month. HB 15, however, aims to get rid of single-issue riders, so in the future, utilities will instead have to consider transmission costs through rate cases that consider all utility costs and expenses and are heavily scrutinized by regulators. That could also lead to lower costs or at least smaller increases. 'Ohio utility consumers already are burdened by billions in utility transmission projects,' said Maureen Willis, who represents the interests of Ohio's utility customers in her role as the state's consumers' counsel. 'By adopting advanced transmission technology, these costs can be reduced, staving off unnecessary 'gold-plating' by utilities, giving consumers more bang for the buck. We strongly advocate for this approach to transmission spending.'
Yahoo
07-05-2025
- Politics
- Yahoo
From Blight to Bright: Michigan Explores Solar Power on Brownfield Sites
The East Lansing Community Solar Park. The park went online in 2019 and was built on top of a retired landfill at Burcham Park. | Kyle Davidson Michigan has 24,000 known contaminated sites, a legacy of heavy manufacturing where industries carelessly discarded hazardous materials with minimal regulatory oversight. Taxpayers are often left to clean up these abandoned locations, known as brownfields, while the sheer volume of toxic sites has overwhelmed state regulators. With a little effort, these spaces can be more than a permanent blight on the landscape. Kelly Thayer, senior policy advocate with the state's Environmental Law & Policy Center, envisions a future where Michigan's brownfields are transformed into sites for diverse solar energy projects. The potential for new solar siting in Michigan aligns with growing nationwide support of the technology, according to a survey co-led by the University of Michigan. Among residents living within three miles of solar energy developments, positive opinions about the projects outnumbered negative ones by almost a 3-to-1 ratio. For the study, a large-scale solar project was defined as a ground-mounted photovoltaic system that generates one megawatt or more of direct current. The majority of respondents lived near new greenfield solar sites—'disturbed' industrial locations or retiring coal plants were strongly preferred for solar development over forests or productive farmland. Thayer, from Frankfort on the shores of Lake Michigan, said there is already precedent for solar on former industrial land in his home state. A 120-megawatt solar array on a long-vacant mining operation in Michigan's Upper Peninsula, for example, was met by residents with little controversy. Yet, a Michigan Department of Natural Resources proposal to transition a former oil-and-gas plot in Gaylord to solar energy was met with substantial public backlash in January. Following resident protests against tree and grassland removal for the solar array, the agency extended the public comment period and halted state land leases for solar projects. This limbo period gives Michigan a chance to readjust its solar siting approach, with an emphasis on distressed lands that would allow the technology to flourish, Thayer said. 'The work now is to chart the near-term future of how Michiganders get their energy,' said Thayer, whose advocacy group focuses on renewable energy and clean transportation solutions for the Midwest. 'This can be talked about through the lens of climate or the environment, but the public health ramifications are enormous as well.' A Vital Asset Last year, the state of Michigan won a $129 million grant from the U.S. Environmental Protection Agency for utility-scale renewable energy projects, including those on brownfields. These 'orphan' industrial plots—landfills, auto plants and other properties left to molder by private industry—are vital assets for a state seeking to reduce its reliance on fossil fuels, noted Thayer. Michigan aims to be a national climate action leader, driven by Gov. Gretchen Whitmer's 2050 carbon neutrality goals. Among the tenets of the MI Healthy Climate Plan is streamlining the siting process for wind, solar and battery storage projects. State legislation like Senate Bill 277, meanwhile, includes solar facilities as a permitted use for farmers under the Farmland and Open Space Preservation Act. Thayer's organization, the Environmental Law & Policy Center, also views retiring coal plants as potential solar energy hubs, considering that they are already connected to the energy grid. For instance, the organization helped develop a blueprint for the Dan E. Karn coal plant site, slated as the future home for an 85-megawatt solar energy site expected to be operational in 2026. 'These are flat, highly-disturbed sites that also have a substation in place that's hard-wired to the grid,' Thayer said. 'Having that infrastructure saves millions in development, and saves time because it takes four or five years to add new energy resources to the grid.' Some Michigan clean energy projects are hindered by years-long grid connection delays as well as restrictive zoning ordinances that impede their development. In addition, Michigan lacks a comprehensive database of brownfields that detail key characteristics sought by solar developers, said Julie Lowe, brownfield coordinator for the remediation and redevelopment division of the Michigan Department of Environment, Great Lakes, and Energy (EGLE). 'Developers will have to use multiple resources to site projects on known sites of contamination,' said Lowe. 'They need databases for tree canopy cover, or have to do site reconnaissance to eyeball the slope and see if it fits their needs.' An Array of Solar Options EGLE does offer a list of guidelines for anyone asking to purchase a contaminated property for renewable energy development. Prospective buyers must conduct a two-phase Baseline Environmental Assessment before moving ahead with a project. Due diligence may encompass a deep dive into a site's former use, as well as comprehensive testing of soil or groundwater samples. 'You may have to go back to the 19th century to determine what the property was used for,' Lowe said. 'And there might be drilling or radar work needed to see if there's something in the ground. For brownfields, we see solvents [in the soil] for dry cleaning or auto repair, because those were chemicals used in those activities.' Various brownfield incentives and programs may subsidize environmental remediation or any additional assessment a site requires, added Lowe. EGLE's Brownfield Tax Increment Financing utilizes the rise in tax revenue from a revitalized site to reimburse developers for the cleanup and demolition work that generated that increase. That is not to say developers should always foot the bill, said Thayer. A series of 'polluter pay' laws—which force parties responsible for contamination to pay for site cleanup and remediation costs—are currently being proposed by Michigan lawmakers. Thayer also advocates for virtual power plant programs, enabling utilities to pay homeowners with solar and battery storage to contribute stored power during peak demand. Community solar, which involves installing arrays on vacant lots or working farmlands, can be another multi-billion-dollar boon for Michigan, said Thayer. According to a 2021 study by Michigan State University, community solar could deliver a nearly $1.5 billion boost to the state's economy over the next 30 years. For now, Michigan officials should prioritize cleaning up and advancing solar energy projects on the state's innumerable polluted brownfields, said Sarah Mills, a University of Michigan researcher who directs the Center for EmPowering Communities at the Graham Sustainability Institute. 'I go to meetings about large renewables projects, and it's mostly for farmland,' said Mills. 'People will say, 'Why here, why not a brownfield?' From a community acceptance perspective, this is what most people consider a no-brainer.' This article originally appeared on Inside Climate News, a nonprofit, non-partisan news organization that covers climate, energy and the environment. Sign up for their newsletter here.
Chicago Tribune
07-05-2025
- Politics
- Chicago Tribune
Letters: To save mass transit in the Chicago region, we must think long term
The Regional Transportation Authority's new ad campaign has people fuming. There's a lot to criticize about transit management. We think the RTA is missing the mark on the scale of reforms needed to improve transit, but the agency is right about one thing: Funding is urgent. If lawmakers kick the can down the road, we'll see a lot more public money wasted, economic opportunity squandered, riders ghosted and city streets gridlocked. If we hit summer with no solution, the agencies would immediately roll back service improvements that are currently underway, including Metra's Regional Rail plan, Pace's Pulse bus rapid transit and the CTA's new 10-minute frequent bus network. Instead of making things better, staff members would have to devote their summer and fall to planning for funding cuts, mass layoffs and 40% service cuts by early 2026. Transit is the backbone of our economy, so this would affect millions of people who never set foot on a bus or train. In just the first year, our region could lose $2.6 billion in gross domestic product, and 500,000 bus riders would be cut off from their local stops. Putting that figure in perspective: The Kennedy Expressway carries only 250,000 cars a day! Travel needs have changed since COVID-19, but cities around the world have increased transit ridership by serving many trips outside work: school, doctor, family, recreation, etc. That's how transit used to work in Chicago too, before austerity dwindled capacity to a focus on commuters. Resilient systems diversify! Fast, frequent, safe service throughout the day and week would connect communities across the region, while unified schedules, fares and service planning would save money and improve the rider experience. To make these shifts, we need governance reform, time and stable finances. Public transportation serves the public good. It is in our collective interest to ensure it works well. Every day we delay in finding a fiscal solution is another day wasted planning cuts instead of planning improvements. The RTA is not alone in calling for a funding fix. Environmental, business and labor leaders agree. At the Environmental Law & Policy Center, we can see the stakes for our air quality and climate impact if we pushed thousands of people into driving more. We must think long term about what's best for the region, and that means saving transit. — Lena Guerrero Reynolds, communications and policy advocate, Environmental Law & Policy Center, Chicago Transforming Chicago The 'abundance' movement is taking U.S. politics by storm. Named after the recently released book by Ezra Klein and Derek Thompson, its advocates argue that America has the capacity to provide housing, health care and transportation for all, but is held back by regulatory barriers, institutional inertia and a scarcity mindset. More controversially, Klein and Thompson argue that fixing these issues is the key to reviving healthy governance in blue states — and thereby winning back the trust of voters who have gone over to Donald Trump. The diagnosis could not be more spot-on here in Chicago, where Trump surged in 2024 relative to 2020. So what do these ideas mean here? First and foremost, abundance means building housing. A lot more housing. Chicago's restrictive zoning rules and high construction costs have led to a virtual collapse in housing development. The results: Rents are spiking, with some outlets reporting a 12% increase in average rents between 2024 and 2025. If the city had trouble retaining people before, a major increase in rents might tip it into serious population loss. Simply building more homes would keep rents down and generate more tax revenue for the city, but our politicians refuse to make obvious changes. At a minimum, Chicago must eliminate its parking minimums — as cities like San Francisco; Austin, Texas; and Minneapolis have done — and permit four-flats in all residential areas. Beyond that, we should permit larger developments by right in neighborhoods with the transportation infrastructure to support them. Beyond changes to zoning rules, an abundance approach to land use would move away from the grubby, small-scale thinking of City Hall culture. Arbitrary decision-making among aldermen makes business unpredictable and difficult. Rather than have officials negotiate every little point with individual businesses, the abundance approach would be to simplify the rules, allow more things by default and not make exceptions. The biggest idea in the abundance movement is that for government to be trustworthy, it has to deliver. Chicago is clearly falling short of that goal — but it doesn't have to. — Lionel Barrow, Chicago Austin versus Chicago In his op-ed ('Austin, Texas, figures out affordable housing while Chicago postures,' May 1), Micky Horstman writes, 'This year, rents in Austin (Texas) dropped again to $1,436 per month. How?' Could it possibly be because of the recent surplus in rental properties and the slowdown in population growth in Austin? Austin sits on 325 square miles of land and has about 980,000 residents, and Chicago sits on 234 square miles of land and has 2.7 million residents. Could it possibly be because Austin has 40% more land to build on and 37% of Chicago's population? Could it possibly be because of supply and demand, i.e., simple economics? Definitely has to be policy, right? — Brian Collins, Orland Park The tax wagon returns With respect to the editorial 'Believe it or not, Springfield is mulling a jobs tax' (May 1), I can't believe state Sen. Ram Villivalam. This is the same person who recently pushed for exploring a miles-driven tax. I seem to recall him saying, in typical politician speak, something such as this won't affect anyone since it's a study. Sure, and if the tax passes into law, we are all getting hit with more taxes. Well, here he is again suggesting more taxes. Sure, he, along with other politicians, will play it off as a 'small' 1% fee, insignificant. We are already one of the highest taxed states in the union. Government's job is not charity, and this sure smells like forced charity. He has only been in office since 2019, but I think he needs to go already. If all he can offer is more taxes, his vision is limited. Anybody can roll out the tax wagon. Time for new leadership that offer ideas other than taxing the people who are already being taxed into oblivion in Illinois. — Keith Mockenhaupt, Chicago Thank a nurse this week Regardless of their specialty or where they practice, nurses play critical roles in treating injuries and illness, as well as keeping people healthy and safe. They are often at the front line of health care, at the stretcherside delivering expert care while comforting and advocating for their patients and families. Throughout my years in emergency nursing, I have had the privilege of meeting and working with nurses across many aspects of our profession. My career has taken me through the intensive care unit, the emergency department, flight nursing, hospital leadership, research, advocacy and as a leader at many levels of the Emergency Nurses Association. Throughout this time, I have learned from and been inspired by nurses from all walks of life, who each traveled a unique path into nursing and have riveting stories to tell about their journeys. I also love presenting at student nursing events and sharing in the excitement of young people who are getting ready to dive into this rewarding, challenging, humbling and amazing profession. During National Nurses Week, May 6 through 12, I want to express appreciation on behalf of myself and the Emergency Nurses Association for all nurses and the work they do. Nurses use their expertise to respond to the most traumatic injuries and care for patients in all fields — from oncology to obstetrics to orthopedics. They educate the public about illness and injury prevention, conduct research that leads to better patient outcomes, and teach today's students who are working to be tomorrow's nurses. I encourage everyone, when they have an opportunity, to thank their nurses for all they do to make communities healthier and safer.
Fast Company
06-05-2025
- Politics
- Fast Company
These old industrial sites in Michigan are toxic—but they could become a solar gold mine
Michigan has 24,000 known contaminated sites, a legacy of heavy manufacturing where industries carelessly discarded hazardous materials with minimal regulatory oversight. Taxpayers are often left to clean up these abandoned locations, known as brownfields, while the sheer volume of toxic sites has overwhelmed state regulators. With a little effort, these spaces can be more than a permanent blight on the landscape. Kelly Thayer, senior policy advocate with the state's Environmental Law & Policy Center, envisions a future where Michigan's brownfields are transformed into sites for diverse solar energy projects. The potential for new solar siting in Michigan aligns with growing nationwide support of the technology, according to a survey co-led by the University of Michigan. Among residents living within three miles of solar energy developments, positive opinions about the projects outnumbered negative ones by almost a 3-to-1 ratio. For the study, a large-scale solar project was defined as a ground-mounted photovoltaic system that generates one megawatt or more of direct current. The majority of respondents lived near new greenfield solar sites—'disturbed' industrial locations or retiring coal plants were strongly preferred for solar development over forests or productive farmland. Thayer, from Frankfort on the shores of Lake Michigan, said there is already precedent for solar on former industrial land in his home state. A 120-megawatt solar array on a long-vacant mining operation in Michigan's Upper Peninsula, for example, was met by residents with little controversy. Yet, a Michigan Department of Natural Resources proposal to transition a former oil-and-gas plot in Gaylord to solar energy was met with substantial public backlash in January. Following resident protests against tree and grassland removal for the solar array, the agency extended the public comment period and halted state land leases for solar projects. This limbo period gives Michigan a chance to readjust its solar siting approach, with an emphasis on distressed lands that would allow the technology to flourish, Thayer said. 'The work now is to chart the near-term future of how Michiganders get their energy,' said Thayer, whose advocacy group focuses on renewable energy and clean transportation solutions for the Midwest. 'This can be talked about through the lens of climate or the environment, but the public health ramifications are enormous as well.' A Vital Asset Last year, the state of Michigan won a $129 million grant from the EPA for utility-scale renewable energy projects, including those on brownfields. These 'orphan' industrial plots—landfills, auto plants and other properties left to molder by private industry—are vital assets for a state seeking to reduce its reliance on fossil fuels, noted Thayer. Michigan aims to be a national climate action leader, driven by Governor Gretchen Whitmer's 2050 carbon neutrality goals. Among the tenets of the MI Healthy Climate Plan is streamlining the siting process for wind, solar and battery storage projects. State legislation like Senate Bill 277, meanwhile, includes solar facilities as a permitted use for farmers under the Farmland and Open Space Preservation Act. Thayer's organization, the Environmental Law & Policy Center, also views retiring coal plants as potential solar energy hubs, considering that they are already connected to the energy grid. For instance, the organization helped develop a blueprint for the Dan E. Karn coal plant site, slated as the future home for an 85-megawatt solar energy site expected to be operational in 2026. 'These are flat, highly-disturbed sites that also have a substation in place that's hard-wired to the grid,' Thayer said. 'Having that infrastructure saves millions in development, and saves time because it takes four or five years to add new energy resources to the grid.' Some Michigan clean energy projects are hindered by years-long grid connection delays as well as restrictive zoning ordinances that impede their development. In addition, Michigan lacks a comprehensive database of brownfields that detail key characteristics sought by solar developers, said Julie Lowe, brownfield coordinator for the remediation and redevelopment division of the Michigan Department of Environment, Great Lakes, and Energy (EGLE). 'Developers will have to use multiple resources to site projects on known sites of contamination,' said Lowe. 'They need databases for tree canopy cover, or have to do site reconnaissance to eyeball the slope and see if it fits their needs.' An Array of Solar Options EGLE does offer a list of guidelines for anyone asking to purchase a contaminated property for renewable energy development. Prospective buyers must conduct a two-phase Baseline Environmental Assessment before moving ahead with a project. Due diligence may encompass a deep dive into a site's former use, as well as comprehensive testing of soil or groundwater samples. 'You may have to go back to the 19th century to determine what the property was used for,' Lowe said. 'And there might be drilling or radar work needed to see if there's something in the ground. For brownfields, we see solvents [in the soil] for dry cleaning or auto repair, because those were chemicals used in those activities.' Various brownfield incentives and programs may subsidize environmental remediation or any additional assessment a site requires, added Lowe. EGLE's Brownfield Tax Increment Financing utilizes the rise in tax revenue from a revitalized site to reimburse developers for the cleanup and demolition work that generated that increase. That is not to say developers should always foot the bill, said Thayer. A series of 'polluter pay' laws—which force parties responsible for contamination to pay for site cleanup and remediation costs—are currently being proposed by Michigan lawmakers. Thayer also advocates for virtual power plant programs, enabling utilities to pay homeowners with solar and battery storage to contribute stored power during peak demand. Community solar, which involves installing arrays on vacant lots or working farmlands, can be another multibillion-dollar boon for Michigan, said Thayer. According to a 2021 study by Michigan State University, community solar could deliver a nearly $1.5 billion boost to the state's economy over the next 30 years. For now, Michigan officials should prioritize cleaning up and advancing solar energy projects on the state's innumerable polluted brownfields, said Sarah Mills, a University of Michigan researcher who directs the Center for EmPowering Communities at the Graham Sustainability Institute. 'I go to meetings about large renewables projects, and it's mostly for farmland,' said Mills. 'People will say, 'Why here, why not a brownfield?' From a community acceptance perspective, this is what most people consider a no-brainer.'
Yahoo
27-03-2025
- Business
- Yahoo
Ohio utility retracts energy-efficiency plan despite potential savings
Another proposed energy-saving program is on the chopping block in Ohio. Duke Energy Ohio quietly dropped plans late last year to roll out a broad portfolio of programs that would have boosted energy efficiency and encouraged customers to use less electricity during times of peak demand. The plans, which would have saved ratepayers nearly $126 million over three years after deductions for costs, were part of a regulatory filing last April that sought to increase charges on customers' electric bills. The move came after settlement talks with other stakeholders, including the state's consumer advocate, which opposes collecting ratepayer money to provide the programs to people who aren't in low-income groups. State regulators are now weighing whether to approve the settlement with a much smaller efficiency program focused on low-income neighborhoods. The case is the latest chapter in a struggle to restore utility-run programs for energy efficiency after House Bill 6, the 2019 nuclear and coal bailout law that also gutted the state's renewable energy standards and eliminated requirements for utilities to help customers save energy. Studies show that utility-run energy-efficiency programs are among the cheapest ways to meet growing electricity needs and cut greenhouse gas emissions. Lower demand means fossil-fuel power plants can run less often. Less wasted energy translates into lower bills for customers who take advantage of efficiency programs. Even customers who don't directly participate benefit because the programs lower peak demand when power costs the most. Energy efficiency can also put downward pressure on capacity prices — amounts paid by grid operators to electricity producers to make sure enough generation will be available for future needs. Due to high projected demand compared to available generation, capacity prices for most of the PJM region, including Ohio, will jump ninefold in June to about $270 per megawatt-day. 'At a time when PJM is saying we're facing capacity shortages, we should be doing everything we can to reduce demand,' said Rob Kelter, a senior attorney for the Environmental Law & Policy Center. Since 2019, the Public Utilities Commission of Ohio has generally rejected utility efforts to offer widely available, ratepayer-funded programs for energy efficiency. Legislative efforts to clarify that such programs are allowed under Ohio law have been introduced but failed to pass. In the current case, Duke Energy Ohio, which serves about 750,000 customers in southwestern Ohio, proposed a portfolio of efficiency offerings that would have cost ratepayers about $75 million over the course of three years but created net savings of nearly $126 million over the same period. The package included energy-efficient appliance rebates, incentives for off-peak energy use, education programs for schools, and home energy assessments. The company also proposed incentives for customers who let it curtail air conditioning on hot days through smart thermostats. In November, Duke Energy Ohio filed a proposed settlement with the PUCO staff, the Office of the Ohio Consumers' Counsel, industry groups, and others. The terms drop all the programs for energy efficiency, except for one geared toward low-income consumers at a cost of up to $2.4 million per year. The Environmental Law & Policy Center and Ohio Environmental Council objected, as did a consumer group, the Citizens Utility Board of Ohio. The PUCO will decide whether to approve the settlement plan by evaluating whether it benefits ratepayers and the public interest, whether it is the result of 'serious bargaining' among knowledgable parties, and whether it violates any important regulatory principles or practices. Witnesses testified for and against the settlement at a hearing in January. Parties filed briefs in February and March. Duke Energy Ohio argued in its brief that the settlement will still benefit customers and serve the public interest, even without the energy-efficiency programs for consumers who aren't low-income. It also suggested that cutting out most of the energy-efficiency measures was needed to reach a deal with other stakeholders and the PUCO. Staff at the PUCO said the settlement would benefit customers by cutting some projects and limiting how high other charges could go. They dismissed objections about dropping broadly available programs for energy efficiency. '[T]he standard is whether ratepayers benefit, not whether they could have benefitted more,' state lawyers wrote in their brief. The Environmental Law & Policy Center, Ohio Environmental Council, and Citizens Utility Board of Ohio all argued there is no evidence to support dropping the energy-efficiency programs. They questioned the approach by a Consumers' Counsel witness of counting only avoided rider costs as benefits, without considering the projected savings from energy efficiency. The Consumers' Counsel defended its perspective in an email to Canary Media. 'We oppose subsidizing energy efficiency programs through utility rates when those products and services are already available in the competitive marketplace,' the office's statement said. 'And when the programs are run by the utility, there are added charges to consumers, such as shared savings and lost distribution revenue.' The statement also noted that other PUCO decisions have refused to allow energy-efficiency programs that would serve groups other than low-income households. Last year, for example, the PUCO allowed FirstEnergy to run a low-income energy-efficiency program but turned down its proposal to include generally available rebates in a rider package. Those are 'better suited for the competitive market, where both residential and non-residential customers will be able to obtain products and services to meet their individual needs,' the commission's opinion said. The commission did, however, say the company should develop a rebate program for smart thermostats to help customers manage their energy use. FirstEnergy included that in its latest rider plan filed on Jan. 31. Ohio has been particularly devoid of programs like those dropped in Duke's settlement since HB 6 took effect, said Trent Dougherty, a lawyer for the Citizens Utility Board of Ohio. Calculations as of 2019 estimated the law's gutting of the state's energy-efficiency standard costs each consumer savings of nearly $10 per month. 'Continuing a pattern of wish-casting, that the market will provide the savings that HB 6 took away, is not a solution,' Dougherty said.
