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For Immediate Release:
2008-09-08
For More Information:
Amy Gomberg, (614) 460-8732
Anna Aurilio, 202-683-1250 x317
Rob Sargent, 617-747-4317 Ohio

PUCO Releases Rules Dictating Future of Clean Energy in Ohio: Advanced Energy Businesses and Clean Energy Interests Respond

Columbus, Ohio – Today, a group of advanced energy business trade associations and other renewable energy experts joined forces to propose comments to the Public Utilities Commission of Ohio (PUCO) on how to ensure successful growth in Ohio’s renewable energy market.

The comments came in response to draft rules the PUCO recently released regarding renewable energy. The rules implement Senate Bill 221, the recently passed landmark energy bill that was signed into law by Governor Strickland on May 1st. SB 221 requires utilities to use an ever-increasing percentage of advanced and renewable energy from such sources as wind and solar power.

“As the Governor and General Assembly recognized, developing Ohio’s wind energy resources provides an incredible opportunity to grow new jobs, reduce air pollution and become more energy independent,” stated Amy Gomberg, program director with Environment Ohio. “To seal the deal for clean energy in Ohio, we encourage the Public Utilities Commission to ensure that Ohio’s energy law is implemented in a fair and transparent way and without loopholes that would let Ohio’s utilities or businesses off the hook for reducing our energy usage and developing more clean sources of power.”

In the wake of the passage of Ohio’s landmark renewable energy law, Ohio has already seen growth in this sector. As manufacturing plants are expanding, wind and solar projects are already underway, including a major solar project in Northwest Ohio and wind farm development in rural counties across Ohio. In addition, developers are also eyeing the offshore winds of Lake Erie for potential wind development.

“Ohio is the target for much attention from solar companies around the world because of our world-class glass manufacturing expertise,” said Norman W. Johnston. Johnston is chairman of trade association Ohio Advanced Energy and chief executive of Solar Fields LLC. “As the cost of solar energy becomes increasingly competitive, the costs associated with other energy resources continue to climb. As long as the PUCO compares solar energy to other energy resources in a fair “apples-to-apples” comparison, we can grow this market in Ohio.”

Many important details in Ohio’s energy bill were left to be decided by the PUCO. Some aspects include:

  1. Comparing the cost of renewable to fossil fuels: The PUCO should ensure a consistent and fair cost comparison of conventional fossil fuel power to renewable energy that includes all costs associated with generating the power.
  2. Protecting the integrity of the renewable energy requirement: The PUCO needs to clearly define the circumstances under which they can waive a utilities’ renewable energy requirement. Additionally, the PUCO should eliminate ALL arbitrary and excessive escape clauses beyond their legal authority as stated in the cost cap and the force majeure clause.
  3. Guaranteeing the least cost for Ohioans: The PUCO should protect consumers by requiring Ohio’s utilities to seek out renewable energy at the most competitive prices the marketplace can offer through a competitive request for proposal process.
  4. Ensuring an open and transparent process: The process for approving a new eligible renewable energy technology should be transparent and include the opportunity for public comments.

“We look forward to the PUCO considering our recommendations that will help ensure renewable energy projects are constructed in Ohio,” stated Beth Soholt, Director, Wind on the Wires, an organization focused on technical and regulatory issues in the Midwest for wind energy projects. “We fully anticipate the utilities will meet the renewable energy standard in S.B. 221 and getting the rules right on the so-called “escape valves” will be very important.”

The comments from Ohio Advanced Energy, AWEA, Wind on the Wires and Environment Ohio were well-received by others in the advanced energy business community. Over 25 advanced energy companies, including SunEdison, Honeywell, Bio-Gas Technologies, and Xunlight, signed on in support of their recommendations made by the energy experts.

“The support from the advanced energy business community is clear,” said Terrence O’Donnell an attorney with Bricker and Eckler who represents Ohio Advanced Energy at the PUCO. “Ohio’s advanced energy companies are ready to grow locally, but they need to know the renewable energy law passed by the General Assembly will be implemented fairly. That is why, for example, we are recommending an open and transparent processes when the PUCO considers what new technologies might be eligible for classification as ‘renewable’.”

In addition to the comments regarding renewable energy, the PUCO issued regulations guiding the future of energy efficiency programs in Ohio. Environment Ohio teamed up with a coalition of Ohio Consumer and Environmental Advocates to comment on the energy efficiency measures, as well.

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The full drafts of the comments issued by OAE, AWEA, WOW and EO are available by request. Please email or call Terrence O'Donnell at todonnell@bricker.com 614-227-2345.

All comments will be available to the public on Tuesday September 9th at the PUCO’s website. The proposed rules are available on the PUCO’s website at: http://www.puco.ohio.gov/PUCO/Rules/Rule.cfm?id=8724