NATURAL GAS POWER PLANT GENERATION IN OHIO
Transcript of NATURAL GAS POWER PLANT GENERATION IN OHIO
© Bricker & Eckler LLP 2019 | www.bricker.com
NATURAL GAS POWER PLANT GENERATION IN
OHIO
[email protected] | @DylanBorchers
Dylan Borchers
© Bricker & Eckler LLP 2019 | www.bricker.com
Roadmap• History of Restructuring Ohio’s Electricity Market• The Current Status of Competition in Ohio• New Natural Gas-Fired Generation Development
in Ohio• Crossroads for the Competitive Market: House
Bill 6 and other Pending Legislation
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Ohio’s Path to a Competitive Market
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Current Status of Competition in OhioOSU/CSU Study:
• Consumers in Ohio saved nearly $15 billion dollars over the last five years as a result of deregulation
• Another $15 billion is savings are excepted in the next five years
However, overall customer bills have not decreased.• Nonbypassable distribution riders have increased
significantly
Generation is developed, owned, and operated by non-utility entities*
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New Natural Gas Power Plant Development in Ohio
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New Investment Capital From Around the World
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Economic Impacts
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Lateral Pipeline Development
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The new pipeline infrastructure being built to serve the new natural gas plants are also attracting new industries . For example, Alpont LLC, a subsidiary of Interstate Chemical, recently located a new facility in the City of Oregon because of the availability of natural gas due to the lateral pipeline serving the Oregon Clean Energy Center.
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Demand for Shale Gas
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Attraction opportunity for Ohio
Methanol plants
Ethane Steam Crackers On-purpose propylene
plants
Ammonia plants
Upstream extractors
Gas Pipelines
Fractionators/processors Power generators
Raw fossil fuels
Complex chemicals
Includes indirect and induced jobs
Refineries
*Not exhaustive 10
Industrial chemicals, coatings, and polymers companies/ JO Wins
Liquids Pipelines
Alkylation plants
Liquids Storage
Pre-2011 Energy/PetroChem Presence in Ohio(from: JobsOhio)
© Bricker & Eckler LLP 2019 | www.bricker.com 11*Not exhaustive
Methanol plants
Steam crackers Propane On-purpose propylene
plants
Ammonia plants
Upstream extractors
Gas Pipelines
Fractionators/processors Power generators
Raw fossil fuels
Complex chemicals
Includes indirect and induced jobs
Refineries
*Not exhaustive 11
Liquids Storage
Industrial chemicals, coatings, and polymers companies
Butane Alkylation
plants Lordstown Energy
Liquids Pipelines
Renewables
Generation Pipeline
Initiatives Focused on the Value Chain(from: JobsOhio)
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Competition at a Crossroads Ohio House Bill 6• Out of market subsidies for nuclear and coal facilities• HB 6 is the outcome of nearly 5 years of effort by the utilities• Ohio has already lost projects because of this legislation.
Referendum Campaign Update
Additional threats to competition:• Solar PPA Cases at PUCO• HB 246 & 247
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Questions?
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Dylan BorchersSenior Associate, Bricker & Eckler LLP
100 S. Third StreetColumbus, OH 43215
614.227.4914
Columbus