Battle brewing over energy conservation standards

Dayton Daily News, 2012-11-28

By Steve Bennish, Dayton Daily News, Ohio

Nov. 28--A battle is emerging over state energy conservation standards that have saved Ohioans $1 billion on their electric bills since 2008.

Ohio's Energy Efficiency Resource Standard requires that Ohio investor-owned utilities cut a cumulative 22 percent of electric consumption through energy efficiency efforts by 2025. The standards were signed into law in 2008 by then Gov. Ted Strickland.

A legislative change proposed by FirstEnergy Corp. would freeze the efficiency levels at what has been achieved through 2012. The proposal has ignited opposition from energy efficiency businesses, a state environmental group and the Ohio Manufacturers' Association.

FirstEnergy spokesman Doug Colafella said the proposal has no sponsor yet and that the utility is only in discussions with legislators and consumer groups. No other state utilities have been mentioned as sponsoring potential changes to the law.

Colafella said the the law went into effect when the economy was doing much better and energy prices were higher. He said the cost of the programs, which he put at more than $500 million statewide, is too high.

To date, the utility has achieved energy demand reductions that total 2.3 percent. But the standards require reductions of 1 percent per year by 2014 and 2 percent per year by 2019 to reach the 22 percent goal. Ohio Edison, which serves Springfield, is a subsidiary of FirstEnergy.

By freezing the programs at current levels, consumers and businesses would end up with more money in their pockets because costs of the programs are passed on to them. The programs offer subsidies for energy efficient lighting and appliances, as well as insulation upgrades.

But Steve Melink, President of Melink Corp. in Milford, a provider of solar power installations and other energy services, said the law has kept the state competitive.

"Energy efficiency is about eliminating waste and becoming more cost-competitive," he said. "Ohio needs to stay committed to this common-sense strategy in order for home and business owners to survive and thrive in this economy."

Melink Corp. recently installed a 500-kilowatt, 2000 panel solar array at Urbana University that will provide about a fifth of the university's energy needs.

The Ohio Manufacturers' Association said the efficiency standards "support policy solutions that produce a lowest-cost electricity environment in which manufacturers can thrive and compete nationally and globally."

The Ohio Environmental Council credits the standards with employing more than 10,000 -- workers in weatherization, energy efficient lighting manufacturing, and energy auditing. It says the energy savings have already been enough to power 500,000 homes for a year.

Groups opposing the rollback also include Advanced Energy Economy Ohio, an industry group, and the Midwest Energy Efficiency Alliance, a nonprofit that promotes energy efficiency as an economic development driver. Energy-efficiency businesses in opposition include Energy Optimizers USA of Tipp City, WattWorks in Columbus and Parkfield Insulation Services in Columbus.

Energy Optimizers USA evaluates the energy efficiency of public buildings and then provides upgrades. The company employs 25 and uses an additional 14 subcontractors, said Belinda Kenley, vice president of business development. It's been in business three years and has added employees annually, she said.

Kenley said the company's work has saved the Miami Valley region more than $1 million in the past few years on energy bills.

"All of our customers are supported by taxpayer dollars. As we save money for clients, we are also saving taxpayers money," she said.

Ohio's efficiency standards match Illinois and Indiana, said Stacey Paradis of the Energy Efficiency Alliance. She said that for every dollar spent by a utility on energy efficiency programs, ratepayers realize a $3 return.

State energy efficiency mandates are also in place in Michigan, Wisconsin, Minnesota and Iowa. Fears are that Ohio's standards could be rolled back quickly in a lame duck legislative session, in which legislation could be passed in an expedited fashion.

"That's the big concern," Paradis said.

The Ohio Consumers' Counsel said Tuesday it remains supportive of the standards.

___

(c)2012 the Dayton Daily News (Dayton, Ohio)

Visit the Dayton Daily News (Dayton, Ohio) at www.daytondailynews.com

Distributed by MCT Information Services

NYSE:FE,NYSE:NVE,

A service of YellowBrix, Inc.