Ohio’s Clean Energy Report Card

Ohio currently generates 85 percent of its electric power from coal, one of the dirtiest energy sources in existence. That makes our state the nation’s second-leading emitter of global warming pollution, costs us $1.5 billion annually on coal imported from other states, and threatens public health and the environment by releasing hundreds of thousands of tons of toxic chemicals into our air each year.

 

Renewable energy and energy efficiency offer better ways to power our state. By decreasing the need for electricity from fossil fuels, these technologies help clean up our air and protect our environment, while also creating new jobs and new investment.

 

Seeking to take advantage of this potential, Ohio adopted a Clean Energy Law in 2008 that puts the state on track to meet a significant portion of its energy needs with energy efficiency and renewable energy.

 

Two years into the implementation of the law, Ohio is saving enough electricity each year to power 43,000 homes, among other significant benefits.

 

However, Ohio utilities vary greatly in their performance in meeting the requirements of the Clean Energy Law. While most of the state’s investor-owned utilities have made significant progress, the state’s largest utility – FirstEnergy – has fallen far short.

 

All of Ohio’s utilities need to build on the state’s success to date by becoming leaders – not laggards – in the drive to a clean energy future.

 

Ohio’s plan to develop its renewable energy and energy efficiency resources is already producing results.

 

• Energy efficiency programs implemented in 2009 saved 477,000 megawatt-hours (MWh) of electricity – enough to power 43,000 homes.
• Ohio’s investor-owned utilities reduced their peak demand by 815 megawatts (MW) in 2009 – more than the capacity of an average-sized coal power plant.
• All four utilities purchased enough renewable energy credits in 2009 to meet their requirements under the Clean Energy Law, spurring new renewable development in Ohio. By the end of 2010, the state had 177 renewable energy generating facilities.
• Although no utility fully met its solar energy requirement in 2009, by the end of 2010 Ohio had 20 MW of approved solar generating facilities, enough to power 2,400 homes.

 

Ohio’s utilities made significant progress towards a clean energy future in 2009, with some performing better than others. This report provides a detailed evaluation of utilities’ progress toward a clean energy future – measuring the utilities’ success in developing renewable energy resources and effective energy efficiency programs under the Clean Energy Law.

 

According to our scorecard:

 

• Duke Energy performed best, receiving an A and scoring 15.5 out of 16 points. Duke led all Ohio utilities in its commitment to solar energy, and saved large amounts of electricity by helping its customers purchase efficient products.
• Dayton Power & Light (DP&L) also scored well, receiving an A for its score of 15 out of 16 points. DP&L was second only to Duke in procuring solar energy in 2009, and constructed its own solar facility in 2010.
• American Electric Power (AEP) met its efficiency and overall renewables goals, but fell well short of its solar goal, and received a B for its score of 13.5 out of 16. AEP has since taken significant steps to remedy its solar shortfall for 2010 by purchasing solar from the Wyandot solar facility, a new generating facility in Upper Sandusky Township. AEP has also led the way in making long term deals to purchase renewable power.
• FirstEnergy scored worst, meeting only a small fraction of both its energy efficiency goal and its solar goal. FirstEnergy received an F for its score of 8.5 out of 16 points. FirstEnergy needs to make major improvements in its programs and a much greater overall effort in future years.

 

Ohio has only begun to tap its potential for energy efficiency and renewable energy.

 

• The American Council for an Energy-Efficient Economy (ACEEE) estimates that Ohio could reduce its energy consumption by 33 percent by 2025 through cost-effective efficiency measures.
• Energy efficiency is the lowest cost energy resource available to Ohio.
• Ambitious energy efficiency efforts have been shown to deliver greater benefits at lower costs to consumers than more modest efforts.
• Ohio has the potential to generate 288,000 gigawatt-hours (GWh) of electricity from wind turbines throughout the state and in Lake Erie, and 34,000 GWh from solar. Combined, Ohio’s solar and wind resources could generate enough electricity to power all the state’s homes six times over.

 

Lawmakers and public officials should ensure that Ohio captures the full benefits of its potential for renewable energy and energy efficiency.

 

• The Public Utilities Commission (PUC) should hold utilities accountable for hitting their requirements under the Clean Energy Law. After issuing waivers to utilities that fell short of their goals in 2009, the PUC needs to make it clear that future benchmarks will be enforced.
• The legislature should require that efficiency requirements be met by delivering real, new energy savings, ending the practice of crediting savings from programs that were implemented as far back as 2006.
• Ohio should expand and strengthen its renewable energy and energy efficiency policies to match policies adopted by leading states.
• Ohio should adopt a suite of policies to support the Clean Energy Law, such as enabling low-cost financing for clean energy projects, investing in research and small business development, and raising the minimum efficiency standards for new buildings.