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Utility Management Advisory

Off The Grid: Understanding Ohio’s Recent Electric Regulations

Posted on June 8, 2016

I don’t know about you, but I’m a fan of the free market system.  If a company has a good product and efficient operations, people purchase from them and they make money.  That’s an overs simplification, of course, but you get the point.  That being said, I’m not a fan of any industry that tries to circumvent the free market system through regulation.  Ohio utilities American Electric Power (AEP) and First Energy are trying to do just that.  They want the PUCO to allow them to keep electric cost artificially high to subsidies their coal power plants.  PJM, the electric grid operator in Ohio and 12 other states, is against this idea.  They believe this could potentially decrease out of state investment in power plant upgrades in Ohio.  Not to mention, Ohio electric users would pay higher than market prices for electricity.  See the links below for the latest on this issue.   

http://www.utilitydive.com/news/pjm-pushes-for-consumer-protections-in-aep-plant-subsidy-case/413237/

http://www.dispatch.com/content/stories/business/2015/02/25/0225-aep-rate-plan-rejected.html

 

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