Testimony at the final hearing of the Electric Mandates Study Committee predicted dire economic consequences of resuming the timetable in 130-SB310. These warnings were based on two reports (I, ii) that used a computer model of a state’s economy. However there were two serious omissions in both studies:
- Neither report includes cost estimates for RECs. The renewable energy goals are being satisfied by the purchase of renewable energy certificates (REC), which are considerably cheaper than the electricity itself.
- The efficiency goals are not included in either analysis. Efficiency has led to a net saving for Ohio ratepayers.
There is a separate issue as to whether the reports give realistic results for the situation they are calculating. For example, ATI (ii) estimates a cost range of $67-100/MWh for 2016. The 2015 price is about $20 (iii).
(i) American Tradition Institute The Cost and Economic Impact of Ohio’s Alternative Energy Portfolio Standard, April 2011
(ii) Randy T Simmons, et al. (Utah State University) Renewable Portfolio Standards: Ohio, April 2015
(iii) League of Women Voters of Ohio, et al. Report on Residential Green Electricity compliance Costs, July 16, 2015 (Table 2, using a typical residential usage of 750 MWh/mo.)