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Ohio

Legislative activities

Beginning in 1979 the Ohio state legislature addressed distributed generation in the form of contractual methods for entering into solar easements. It wasn’t until electric restructuring in 1999 that the legislature addressed distributed energy with a grant mechanism for renewable energy in the form of Ohio’s Advanced Energy Fund and net-metering regulations. Net-metering was again addressed by the legislature in 2008, while Ohio’s Advanced Energy Fund was not extended and expired in 2010. (S.B. 221) [2, 3, 4]

“In May 2008, Governor Strickland signed Substitute Senate Bill 221 mandating a peak-load reduction standard:

“Beginning in 2009, an electric distribution utility shall implement peak demand reduction programs designed to achieve a one per cent reduction in peak demand in 2009 and an additional seventy-five hundredths of one per cent reduction each year through 2018.”

The new law also sets standards for energy efficiency and renewable energy. In addition, it requires the Ohio Public Utilities Commission to report annually the verification of peak-demand reduction achieved by utilities complying with these standards. Finally, the law establishes that it is state policy to “encourage innovation and market access for…demand-side management, time differentiated pricing, and implementation of advanced metering infrastructure.”” [1]


Regulatory activities

The Public Utilities Commission of Ohio had approved distributed generation, including net metering, by 2000. By 2006 they had established load and demand side management programs that have continued to evolve. The Commission also approved Real Time pricing for businesses by 2001 and Time-of-Day pricing for residential and business consumers by 2010. [5, 6]

Parts of Ohio are within the PJM footprint so within that area there is the opportunity for end-use customers to participate in demand response though curtailment service providers.

“In March 2007, the Public Utilities Commission of Ohio issued a Finding and Order that adopts the Staff’s recommendations regarding PURPA Standard 14 (“Time-Based Metering and Communications”) as enacted in EPACT 2005:

“Based on the record in this proceeding, we agree with staff that there may be some questions as to whether many of the EDU’s current tariffs comply with the EPACT. Consequently, all EDUs should offer tariff s to all customer classes which are, at a minimum, differentiated according to on and off -peak wholesale periods. Time-of-use meters should be made available to customers subscribing to the on and off -peak tariffs. We also agree that staff should analyze the cost benefit of AMI deployment strategies. Consistent with staff’s original proposal, the analysis should include system benefits that may accrue to the EDU, customer benefits, and societal benefits.”

The March 2007 Order, however, did not close the proceeding, but rather called for a “series of technical conferences to discuss further associated issues and cost sharing and recovery mechanisms (e.g., each EDU’s detailed AMI business case analysis).” The Commission also directed electric distribution companies to file, in preparation for these conferences, a comprehensive list of AMI technologies and corresponding costs as well as a “copy of the sections of their tariff s which include daily time sensitive rates.

In July 2008, the Commission opened a proceeding in response to Substitute Senate Bill 221, which Governor Strickland signed in May 2008. Specifically, the Commission began the proceeding to address its Staff’s proposed rules for the process of utilities filing market-rate offers (MRO) and electric-security plans (ESP). In September 2008, the Commission issued an Order approving the Staff’s proposed rules with modifications.” [1]

Distributed generators include qualifying cogeneration, small power production facilities, and net metering installations. Where pricing is based on a Time-of-Day seasonal on peak and off peak rate.

Load/demand side management includes load response programs, thermal energy storage programs, peak time rebate programs, and peak load management programs. Load response programs allow a customer receive credit for reducing its load based on the market price differential of the MISO Locational Marginal Price compared to the Generation Service Rider. Thermal energy storage allows the company to shift usage to off peak hours. Peak time programs limit the number of peak critical times to ten in which the company can call for up to eight hours on a voluntary basis, customers that voluntarily lower their demand during those times will earn a credit. Peak load management programs allow the customer to reduce demand a contracted level based on contracted periods of time upon notification by the company.

Time-of-Day includes residential Time of Day with advanced metering, critical peak pricing, and for business customers Real Time pricing. Time of Day breaks the cost for electricity seasonally into periods with energy priced on-peak or off-peak. Critical peak pricing breaks the cost seasonally into periods with energy priced on-peak, shoulder, or off-peak. Real Time pricing uses Day Ahead hourly Locational Marginal Prices for the contracted Midwest ISO node provided eight hours in advance of the day the power flows.


Utilities and Rate Schedules

AEP Ohio
- AEP Ohio Rates

DP&L

Duke Energy
- Duke Energy Rates

First Energy Corp
- First Energy Corp Rates

See the National Rural Electric Cooperative Association (NRECA) for information on consumer-owned Cooperatives: http://www.nreca.org/members/MemberDirectory/Pages/default.aspx


State-Level Incentives

Ohio offers a corporate energy conversion exemption, an advance energy job stimulus plan, special energy improvement districts, and property tax abatement, along with tax exemptions and grants for solar and wind.

More information can be found in the Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=OH


Additional Resources

State Energy Office:
- Ohio Department of Development Ohio Energy Resources Division

State Authority Dealing with Energy Regulation:
- Public Utilities Commission of Ohio
- Docket Search: http://dis.puc.state.oh.us/

Ohio Revised Code

Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=OH


References

[1] Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Officials, Prepared by the U.S. Demand Response Coordinating Committee for The National Council on Electricity Policy, Fall 2008. URL: http://www.oe.energy.gov/DocumentsandMedia/NCEP_Demand_Response_1208.pdf
[2] Database of State Incentives for Renewables & Efficiency, Ohio – Net Metering, 07/13/2009. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=OH02R&re=1&ee=1
[3] Database of State Incentives for Renewables & Efficiency, Ohio Solar Easements, 11/30/2009. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=OH01R&re=1&ee=1
[4] Ohio.gov Department of Development, Advanced Energy Fund. URL: http://www.development.ohio.gov/files/bs/AEF_Report_Website_Fonts.pdf
[5]Duke Energy, Electric Tariff Duke Energy Ohio. URL: http://www.duke-energy.com/rates/ohio/electric.asp
[6]First Energy Corp, Ohio Tariffs. URL: http://www.firstenergycorp.com/Residential_and_Business/Customer_Choice/Tariff_Information/Ohio_Tariffs.html