Energy proposal gives Ohio utilities ...

Energy proposal gives Ohio utilities options

There are 16 comments on the Akron Beacon Journal story from Apr 11, 2008, titled Energy proposal gives Ohio utilities options. In it, Akron Beacon Journal reports that:

COLUMBUS: The Ohio House energy bill unveiled Thursday gives public utilities a stronger hand in deciding whether to opt for having their rates set by the state or move to an open, retail market.

Join the discussion below, or Read more at Akron Beacon Journal.

ytownboy

Defiance, OH

#1 Apr 11, 2008
Sounds like a bunch of hocus pocus. Er, umm, the GOP product would let the utilities set their own rates outside of PUCO regulation. The Governor desires PUCO role in approving such rates. How could the Governor lose that fight if he takes it to the residents of OHIO who have been screwed left and right by the same utilities that the Republicans continue to coddle?? Seems simple to me.
ytownboy

Defiance, OH

#2 Apr 11, 2008
This is the time for the Strickland Administration to make a stand against Husted and the GOP boys that have failed to craft an energy policy that protects the interests of Ohioans the last fifteen years. Whatever happened to DeReg? It has been a joke..........just check your bills since 1999.

“Lohio Bound”

Since: Oct 07

Location hidden

#4 Apr 11, 2008
What you guys seem to either forget or ignore is the fact that Uncle Teddy is and always has been bedroom friendly with the electric utilities in Ohio.

Keep on blaming it on party politics, and keep on deceiving yourselves.
moving out

Akron, OH

#5 Apr 11, 2008
I wonder if the utilities will charge whatever they want when they are deregulated...

hmm... I think the answer is yes. Our prices will surely double, and you can expect a flow of people OUT of Ohio. We just can't afford it!

Since we don't have any options for energy (capitalism?), we have to pay whatever the energy company wants.
sources please

Akron, OH

#6 Apr 11, 2008
scooter moonpie,
You can't just say something and expect us to believe it. Cite your sources!

“Lohio Bound”

Since: Oct 07

Location hidden

#8 Apr 11, 2008
moving out wrote:
I wonder if the utilities will charge whatever they want when they are deregulated...
hmm... I think the answer is yes. Our prices will surely double, and you can expect a flow of people OUT of Ohio. We just can't afford it!
Since we don't have any options for energy (capitalism?), we have to pay whatever the energy company wants.
When was the last time your electric bill increased (for other than increased usage)?

FE's rates have been frozen for nearly a decade. Meanwhile, fuel costs, construction costs, legal costs, materials costs, insurance costs, benefits costs, wages, and taxes have ALL gone up.

If you were running a business that supplied a needed commodity, and your costs kept rising, wouldn't you increase the price of your product, or simply eat the difference?

Deregulaton is already in place in the generation side of the electric biz. Bulk electric sales and purchases (between powercos) are making or breaking utilities today. When FULL dereg kicks in and customers have FULL choice of their provider, you can bet your air conditioner that cents per kilowatt hour WILL increase. The low cost providers will flourish; the high cost providers will eventually go out of business.

The examples of implemented dereg in states like Illinois and Maryland finally brought to light the absurdity of deregulation in the power biz. Remember we're dealing with a commodity that cannot be stored, and which is consumed as soon as it is produced. Personally, I'd prefer the old PUC model of regulated growth, assured rates, and guaranteed returns. Once unleashed, however, the dereg monster sweeps everything clean.

On a side note, I find it funny that the PUCHA was enacted to prevent utility monopolies. With the national onset of dereg, dozens of acquisitions and mergers have occurred, the predicted end result being that when the smoke clears, there will be maybe 10 to 12 electric utilities in the whole USA.

It's indeed tough for legislators to strike a fair balance between producers and consumers. They better hurry up... the clock is winding down!
Unclueless

Lakewood, OH

#9 Apr 11, 2008
Blind fools... Short-sighted Husted wants to unreasonably expose businesses and citizens of Ohio to the volatility of global energy markets because First Energy told him so. Politicians usually tout their economic vision, but clearly this guy is blind. First Energy's wholesale electric cost argument is a house of cards, built on the erroneous proposition that there is a legitimate market for wholesale electric trades. What a bunch of B.S. There is no legitimate rationale for turning our backs on the fair, wise, and long-standing tradition of setting rates based on the utility's costs to build and operate, plus a reasonable return. First Energy's basis, legal and factual, for its demands is as think as the paper it is written on.
Ahau Kin

Maumelle, AR

#10 Apr 11, 2008
Maybe I'll just build a windmill.

Yes, if rates double or rise too high, people will leave Ohio 'can't afford it'. But people are already fleeing Ohio anyway.(Witness '7000 abandoned properties in Akron' from yesterday's story.....)

And if they flee for financial reasons, so what? They are poor, so who cares about them? Certainly not the state. They'll just be some other state's problem then.
Grump and PUCO

Strongsville, OH

#11 Apr 11, 2008
together.
Old Man Grump wrote:
This is terrible for the citizens of Ohio. Your electric bill will double under this plan. I look to Strickland to just say NO to Husted. You can just feel the Utility Lobby at work in this bill. Time to kickout the GOP from the legislature's control in November. They are doing nothing for us and everything for their lobbiest friends.
AppleJack

Avon Lake, OH

#13 Apr 11, 2008
Scooter Moonpie wrote:
<quoted text>
When was the last time your electric bill increased (for other than increased usage)?
FE's rates have been frozen for nearly a decade. Meanwhile, fuel costs, construction costs, legal costs, materials costs, insurance costs, benefits costs, wages, and taxes have ALL gone up.
If you were running a business that supplied a needed commodity, and your costs kept rising, wouldn't you increase the price of your product, or simply eat the difference?
Deregulaton is already in place in the generation side of the electric biz. Bulk electric sales and purchases (between powercos) are making or breaking utilities today. When FULL dereg kicks in and customers have FULL choice of their provider, you can bet your air conditioner that cents per kilowatt hour WILL increase. The low cost providers will flourish; the high cost providers will eventually go out of business.
The examples of implemented dereg in states like Illinois and Maryland finally brought to light the absurdity of deregulation in the power biz. Remember we're dealing with a commodity that cannot be stored, and which is consumed as soon as it is produced. Personally, I'd prefer the old PUC model of regulated growth, assured rates, and guaranteed returns. Once unleashed, however, the dereg monster sweeps everything clean.
On a side note, I find it funny that the PUCHA was enacted to prevent utility monopolies. With the national onset of dereg, dozens of acquisitions and mergers have occurred, the predicted end result being that when the smoke clears, there will be maybe 10 to 12 electric utilities in the whole USA.
It's indeed tough for legislators to strike a fair balance between producers and consumers. They better hurry up... the clock is winding down!
At least one person here knows the facts. It might pay you all to read this post until you understand it.

“Lohio Bound”

Since: Oct 07

Location hidden

#15 Apr 11, 2008
Grump and PUCO wrote:
together.
<quoted text>
lobby

lobbier

lobbiest

“Lohio Bound”

Since: Oct 07

Location hidden

#16 Apr 11, 2008
Unclueless wrote:
Blind fools... Short-sighted Husted wants to unreasonably expose businesses and citizens of Ohio to the volatility of global energy markets because First Energy told him so. Politicians usually tout their economic vision, but clearly this guy is blind. First Energy's wholesale electric cost argument is a house of cards, built on the erroneous proposition that there is a legitimate market for wholesale electric trades. What a bunch of B.S. There is no legitimate rationale for turning our backs on the fair, wise, and long-standing tradition of setting rates based on the utility's costs to build and operate, plus a reasonable return. First Energy's basis, legal and factual, for its demands is as think as the paper it is written on.
Would you care to back your claims with published facts?
Hold Ur Horses

Avon Lake, OH

#17 Apr 11, 2008
I'll gurantee not one person who posts on here fully understands the new Senate Bill. I'll even go so far to say experts and parties with interest don't fully understand it. THIS IS A COMPLEX ISSUE. Give this bill some time to pan out and let the utilities file their security plans. The goal of utility companies is not to gouge thier customers. Its goal is to provide safe, reliable affordable energy in the state and get the best rate of return they can. To achieve those goals there is a cost. On average citizens in the US pay 6.5 cents per kWH. In europe they pay on average 14 cents. If we want safe, reliable and effiecient energy in the state there is a price to pay.

“Lohio Bound”

Since: Oct 07

Location hidden

#18 Apr 11, 2008
Hold Ur Horses wrote:
I'll gurantee not one person who posts on here fully understands the new Senate Bill. I'll even go so far to say experts and parties with interest don't fully understand it. THIS IS A COMPLEX ISSUE. Give this bill some time to pan out and let the utilities file their security plans. The goal of utility companies is not to gouge thier customers. Its goal is to provide safe, reliable affordable energy in the state and get the best rate of return they can. To achieve those goals there is a cost. On average citizens in the US pay 6.5 cents per kWH. In europe they pay on average 14 cents. If we want safe, reliable and effiecient energy in the state there is a price to pay.
Hear, hear. Well stated.
Joe

Lakewood, OH

#19 Apr 11, 2008
Hold Ur Horses wrote:
The goal of utility companies is not to gouge their customers.
While I agree with most of what you said I do not agree with the above statement. Utility companies (the ones the popped up after deregulation - that were not necessary) are out to make as much profit as they are allowed to. Utilities should have been regulated by the government and controlled by the public like they used to be. I'm a republican BTW and I never wanted deregulation of this particular necessity. When deregulation happened (due to lobbying) all kinds of companies pooped up to become "middle men", This caused increased costs so another entity besides the actual provider could make money too. Natural gas prices have been out of this world high ever since.
Hold Ur Horses

Avon Lake, OH

#20 Apr 11, 2008
Never wanted deregulation...

Hate to break it to you but none of the operating companies in the state wanted deregulation either. It was large industrial customers the ones who pay 4 cents per kWH. Senate Bill 3 required all operating companies to sell off their generation to deregulated entities so what did firstenergy do...? They followed the law the only operating company in the state who did. Now they are in a position to go to market while the other companies are going to be forced to gradually phase into dereg. The more companies that go to market the cheeper energy will be for all in Ohio. Re-regulation will never happen again....ever. Plus do you really want to pay for energy companies to build power plants? Because FirstEnergy sold thier assets off you don't have to worry about paying for this anymore. Independent companies will be forced to carry that risk and burden.
Joe wrote:
<quoted text>
While I agree with most of what you said I do not agree with the above statement. Utility companies (the ones the popped up after deregulation - that were not necessary) are out to make as much profit as they are allowed to. Utilities should have been regulated by the government and controlled by the public like they used to be. I'm a republican BTW and I never wanted deregulation of this particular necessity. When deregulation happened (due to lobbying) all kinds of companies pooped up to become "middle men", This caused increased costs so another entity besides the actual provider could make money too. Natural gas prices have been out of this world high ever since.

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