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00:00:00>> SUPPORT FOR "THE STATE OF
OHIO" COMES FROM THE LAW OFFICES
00:00:03OF PORTER, WRIGHT, MORRIS &
ARTHUR LLP., HELPING BUSINESSES
00:00:07AND INDIVIDUALS SOLVE COMPLEX
LEGAL PROBLEMS THROUGHOUT OHIO,
00:00:11ACROSS THE COUNTRY AND AROUND
THE WORLD -- ON THE WEB AT
00:00:17PORTERWRIGHT.COM.
AND FROM THE OHIO EDUCATION
00:00:19ASSOCIATION, REPRESENTING
131,000 TEACHERS, SUPPORT
00:00:21PROFESSIONALS AND HIGHER
EDUCATION FACULTY WHO ARE
00:00:25WORKING FOR GREAT PUBLIC SCHOOLS
FOR EVERY CHILD, ONLINE AT
00:00:27OHEA.ORG.
>> A BIG JOBS WIN FOR SOUTHWEST
00:00:32OHIO.
AND THE CONTROVERSIAL BILL TO
00:00:34MAKE BIG CHANGES IN THE STATE'S
ALTERNATIVE ENERGY STANDARDS GOT
00:00:36AN OVERHAUL ITSELF.
NOW IT WOULD FREEZE THOSE
00:00:39STANDARDS THOUGH OPPONENTS SAY
IT'S NOT A FREEZE, IT'S A
00:00:41REPEAL.
TWO LEADERS FROM BOTH SIDES OF
00:00:48THE DEBATE ARE HERE TO DISCUSS
THE BILL.
00:00:50ALL THIS WEEK IN "THE STATE OF
OHIO".
00:00:55CAPTIONED BY THE
NATIONAL CAPTIONING INSTITUTE
00:00:56--WWW.NCICAP.ORG--
BIG JOBS NEWS THIS WEEK FOR
00:00:58SOUTHWEST OHIO.
GENERAL ELECTRIC SAYS IT WILL
00:01:01BUILD ITS US GLOBAL OPERATIONS
CENTER IN THE CINCINNATI AREA.
00:01:05IT'LL BE ONE OF FIVE WORLDWIDE,
AND COULD EMPLOY BETWEEN 1,400
00:01:12PEOPLE BY 2017, AND MAYBE AS
MANY AS 2,000 EVENTUALLY.
00:01:15GOV. JOHN KASICH SPOKE TO ME AS
PART OF A ROUND OF INTERVIEWS HE
00:01:18DID THIS WEEK WITH GE'S JOE
ALLEN, THE GENERAL MANAGER OF
00:01:20THE SHARED SERVICES DIVISION.
>> THIS IS REALLY BIG TIME.
00:01:26THIS IS THE BIGGEST JOB
ANNOUNCEMENT AND SINGLE JOB
00:01:31GROWTH IN A DECADE.
IT IS NOT JUST ONE COMPANY, IT
00:01:37IS GE.
THEY'RE THE ONES THAT TURN THE
00:01:40LIGHTS ON.
THEY ARE IN A CRADDOCK COMPANY.
00:01:44THEY ARE ONE OF THE GREAT
COMPANIES IN THE WORLD.
00:01:46FOR THEM TO FURTHER STAMPED ON
THEIR PRESENT HERE, IT'S FRAN
00:01:50TESTING -- IT'S FANTASTIC.
>> KASICH CREDITS HIS
00:01:53PUBLIC-PRIVATE JOB CREATING
ENTITY JOBSOHIO FOR SECURING
00:01:56THIS DEAL, BUT WON'T SAY EXACTLY
HOW MUCH THE STATE OFFERED TO GE
00:01:58IN INCENTIVES.
MEANWHILE, HIS LIKELY DEMOCRATIC
00:02:00OPPONENT THIS FALL, CUYAHOGA
COUNTY EXECUTIVE ED FITZGERALD,
00:02:03NOTED THAT IN 2010, KASICH
OPPOSED THE FEDERAL TARP BILL
00:02:07WHICH PROVIDED GE WITH MILLIONS
OF DOLLARS DURING THE ECONOMIC
00:02:10CRISIS.
WHAT USED TO BE KNOWN AS THE
00:02:14BUDGET CORRECTION BILL AND
WHAT'S NOW CALLED THE MID
00:02:16BIENNIUM REVIEW OR MBR IS
WORKING ITS WAY THROUGH THE
00:02:19LEGISLATURE.
THE MAIN APPROPRIATIONS BILL WAS
00:02:21ON THE HOUSE FLOOR THIS WEEK,
AFTER THE HOUSE FINANCE
00:02:24COMMITTEE APPROVED IT WITH
SEVERAL PAGES OF ADDITIONS AND
00:02:28CHANGES DROPPED IN BY GOP
LAWMAKERS.
00:02:32>> IT IS CLEAR TO ALL OF US THAT
THIS IS THE MOST OBJECTIONABLE
00:02:41HEART OF THE LEGISLATIVE
CROSS-ICE.
00:02:42ALLOWING NODES AS THOSE IN THIS
ROOM TO LOOK LIKE WE'RE
00:02:43PROSTITUTES AND FOR OTHER
COUNTRIES, IT IS HARD ENOUGH TO
00:02:48DEFEND WHAT WE DO HERE.
COME ON.
00:02:52THIS IS CRAZY.
I WASN'T AWARE OF THIS UNTIL
00:02:58THIS MORNING.
I THOUGHT 28 YEARS HERE, I
00:03:02SHOULD AT LEAST KNOW WHAT THE
HECK IS GOING ON IN THIS
00:03:05PROCESS, AND JUST BEING
DISSEMINATED, JUST BEING
00:03:11DECIMATED.
>> I FIND IT INTERESTING THAT
00:03:13THE GENTLEMAN WHO IS VERY GOOD
AT STARTING FIGHTS ON THE FLOOR
00:03:18OF THE HOUSE AND THE SENATE
WOULD SOMEHOW WRAP HIMSELF IN A
00:03:24LIBERTARIAN FLAG TODAY.
I THINK PERHAPS THAT TO RAIL
00:03:34AGAINST CITIZENS UNITED AS HE
JUST DID IS TO MISS THE POINT.
00:03:38IF YOU DO NOT LIKE CITIZENS
UNITED TO BE CAN YELL THE
00:03:43SUPREME COURT BUT THE QUESTION
WE HAVE TO DO HERE IS HOW DO WE
00:03:46GO FORWARD?
IT IS ALWAYS CONTENTIONS WHEN WE
00:03:53TALK ABOUT HOW DO WE HANDLE THE
FIRST AMENDMENT.
00:03:55I DO NOT WANT TO READ A, BUT WE
ARE WITNESSING SOME PRETTY
00:03:59SPIRITED DEBATE HERE TODAY.
>> AMONG THE MOST CONTROVERSIAL
00:04:01ITEMS A LINE SAYING THAT
COLLEGE ATHLETES AREN'T STATE
00:04:03EMPLOYEES WHICH MANY VIEWED AS
A POTENTIAL SHUT DOWN AT
00:04:06ATTEMPTS BY ATHLETES TO UNIONIZE
- AND THE ELIMINATION OF A RULE
00:04:11ON CAMPAIGN SPENDING BY LABOR
ORGANIZATIONS, NONPROFITS AND
00:04:16CORPORATIONS - WHICH COULD OPEN
THE DOOR TO FOREIGN COMPANIES
00:04:18WITH GOVERNMENT CONTRACTS IN
OHIO SPENDING MONEY ON POLITICAL
00:04:21CANDIDATES, BUT NOT BEING
REQUIRED TO DISCLOSE THAT
00:04:27SPENDING IN ADS.
TAKEN OUT WAS A CUT IN STATE
00:04:28FUNDS TO COUNTIES THAT SEND OUT
UNSOLICITED ABSENTEE BALLOTS TO
00:04:30ALL VOTERS.
THAT WAS CLEARLY TARGETED AT THE
00:04:34CUYAHOGA COUNTY EXECUTIVE ED
FITZGERALD.
00:04:41GOV. KASICH AND SECRETARY OF
STATE JON HUSTED BOTH ASKED FOR
00:04:43THAT TO BE REMOVED, AND THOUGH
IT WAS, THE CUYAHOGA COUNTY
00:04:44COUNCIL STILL VOTED TO GO AHEAD
WITH PLANS TO SEND OUT THOSE
00:04:46UNSOLICITED ABSENTEE BALLOT
APPLICATIONS.
00:04:50WHILE IT'S LIKELY THIS MEASURE
WILL PASS NEXT MONTH, OTHER
00:04:52PARTS OF KASICH'S MBR DEALING
WITH AN INCREASE IN THE
00:04:55SEVERANCE TAX ON OIL AND GAS
DRILLERS AND AN INCOME TAX CUT
00:04:58AREN'T EXPECTED TO MOVE AS
QUICKLY.
00:05:02AND A NORTHEAST OHIO REPUBLICAN
STATE LAWMAKER MISSED THE ACTION
00:05:05AT THE STATEHOUSE THIS WEEK
HE'S HOME RECOVERING AFTER
00:05:08DONATING A KIDNEY TO HIS WIFE.
REP. RON YOUNG OF LEROY TOWNSHIP
00:05:13IN LAKE COUNTY HAD TO UNDERGO A
SECOND SURGERY BECAUSE OF A
00:05:15COMPLICATION THAT DEVELOPED IN
THE FIRST OPERATION TO REMOVE
00:05:18THE KIDNEY.
OHIO'S ALTERNATIVE ENERGY
00:05:21STANDARDS HAVE BEEN LAW FOR SIX
YEARS, BUT THEY'VE BEEN UNDER
00:05:24DEBATE FOR SEVERAL MONTHS.
THE LAW PASSED NEARLY
00:05:28UNANIMOUSLY IN 2008, AND
MANDATES THAT 25 PERCENT OF THE
00:05:31ELECTRICITY SOLD IN OHIO COME
FROM ALTERNATIVE ENERGY SOURCES.
00:05:35AND AT LEAST HALF OF THAT MUST
BE GENERATED BY RENEWABLE
00:05:39SOURCES SUCH AS WIND, SOLAR,
GEOTHERMAL, HYDROPOWER OR
00:05:42BIOMASS, AND HALF OF THAT MUST
BE GENERATED WITHIN OHIO.
00:05:45AS THE STANDARDS WERE BEING
PHASED IN, FIRSTENERGY EXPRESSED
00:05:50SERIOUS CONCERNS ABOUT THEM,
SAYING THINGS HAVE CHANGED IN
00:05:52OHIO SINCE THE LAW WAS PASSED.
FIRSTENERGY HELPED SEN. BILL
00:05:56SEITZ OF CINCINNATI DEVELOP A
BILL THAT WOULD OVERHAUL THOSE
00:05:59STANDARDS, BUT THAT
CONTROVERSIAL BILL STALLED IN
00:06:02COMMITTEE.
BUT THERE'S A NEW BILL THAT
00:06:04WOULD FREEZE THOSE STANDARDS AT
THE END OF THIS YEAR, WHILE A
00:06:08TASK FORCE LOOKS INTO THE COSTS
OF THE STANDARDS AND THE
00:06:11BENEFITS OF THEM.
WE HOPE TO HEAR FROM THE BILL'S
00:06:14SPONSOR, REPUBLICAN SEN. TROY
BALDERSO OF ZANESVILLE, ON NEXT
00:06:20WEEK'S SHOW.
THIS WEEK, TWO LEADERS OF GROUPS
00:06:21THAT WOULD BE AFFECTED BY THE
STANDARDS WHETHER THEY CONTINUE
00:06:23ON SCHEDULE OR ARE FROZEN AT
THIS YEAR'S LEVELS ARE HERE TO
00:06:26TALK ABOUT THE NEW BILL.
TED FORD IS THE PRESIDENT OF
00:06:29OHIO ADVANCED ENERGY ECONOMY,
WHICH REPRESENTS MORE THAN 400
00:06:32RENEWABLE AND ENERGY EFFICIENCY
COMPANIES.
00:06:35SAM RANDAZZO IS WITH INDUSTRIAL
ENERGY USERS OHIO, WHICH
00:06:39REPRESENTS BIG AND SMALL
COMPANIES SUCH AS MCDONALD'S AND
00:06:42MARATHON REFINERY.
LET'S START OFF I GETTING SOME
00:06:51BASELINE SOMEWHERE YOU GENTLEMEN
STAND ON THIS NEW REVISED BILL.
00:06:53I THINK A LOT OF PEOPLE REFER TO
IT AS BILL 310.
00:06:58>> WE DO NOT LIKE IT, WE
CONSIDERED A REPEAL OF A VERY
00:07:03THOUGHTFUL PIECE OF LEGISLATION
THAT WAS PASSED IN 2008.
00:07:07SENATE BILL 221 WAS PASSED AS
EVERYBODY KNEW THAT ENERGY COSTS
00:07:13WERE GOING TO GO UP TO BAD WE
MUTED TO DIVERSIFY OUR SOURCES.
00:07:15WE NEEDED TO USE ENERGY MUCH
MORE EFFICIENTLY.
00:07:21THAT HAS NOT CHANGED.
THE FACT IS ENERGY COSTS ARE
00:07:25GOING UP, AND RENEWABLES AND
ENERGY EFFICIENCY ACTUALLY HELPS
00:07:26HOLD COST DOWN.
WE VIEW THIS AS A BIG MISTAKE.
00:07:32>> SAM, LET RETURN TO YOU.
YOU THINK THIS BILL IS THE RIGHT
00:07:34APPROACH?
>> YES.
00:07:38WE'VE BEEN SUPPORTIVE OF EFFORTS
TO REFORM THE CURRENT MANDATE AS
00:07:40WE ENCOURAGE THE GOVERNMENT OF
OHIO NOT TO ADOPT THE MANDATE IN
00:07:47THE FIRST PLACE.
CONTRARY TO WEBSTER FOR JUST
00:07:51INDICATED THERE WAS NOT ANY
ANALYSIS DONE WHEN THE MANDATE
00:07:54WAS ADOPTED.
THEY WERE BOLTED ONTO ANOTHER
00:07:55PIECE OF LEGISLATION THAT HAD A
CRITICAL TIMELINE, AND AS THINGS
00:07:58HAPPENED WE WERE NOT DEALING
WITH UNINTENDED CONSEQUENCES
00:08:01THAT OCCUR WHEN REALITY COLLIDES
WITH THE ASSUMPTIONS THAT WERE
00:08:07MADE AT THE TIME THE LEGISLATION
WAS ADOPTED.
00:08:08SENATE BILL 310 IS VERY
RESPONSIVE TO CORE OBJECTIVES
00:08:15THAT WE HAVE IDENTIFIED.
WE WILL BE WORKING TO TRY TO A
00:08:18RUBY LEGISLATION TO MAKE IT MORE
-- IMPROVE THE LEGISLATION TO
00:08:23MAKE IT MORE FRIENDLY TO SMALL
BUSINESSES THROUGHOUT OHIO.
00:08:26>> LET ME ASK YOU ABOUT SOME OF
THAT.
00:08:27WHEN HE FIRST PROPOSED THE OTHER
BILL, HE WAS SAYING THAT ANYTIME
00:08:31YOU'RE ON A 20 YEAR PLAN, AND IN
A BILL THAT PASSED FIVE OR SIX
00:08:36YEARS AGO, IT MAY BE TIME TO
REEVALUATE.
00:08:37THINGS HAVE CHANGED.
YOU THINK THIS?
00:08:38>> THINGS ARE CHANGING OF ABOUT
SENATE BILL 313, WHICH WAS
00:08:44GOVERNOR KASICH BILL TWO YEARS
AGO TO TWEAK SENATE BILL 221
00:08:50ACTUALLY REINFORCE THE STANDARDS
THAT ARE IN PLACE.
00:08:52GOVERNOR KASICH DESERVES A LOT
OF CREDIT FOR HAVING LOOKED
00:08:56AHEAD AND SAID WE'RE GOING TO
NEED EVERYTHING WE CAN GET IN
00:08:58ORDER TO REMAIN COMPETITIVE IN
GLOBAL MARKETS.
00:09:01IT HAS BEEN UNDER ATTACK EVER
SINCE.
00:09:06>> LET ME ASK YOU, SINCE THE
STANDARDS WITH INTO PLACE, AND
00:09:12EVEN SINCE THE GOVERNORS WERE
POSTAL HERE, THERE ARE A LOT OF
00:09:15BUSINESSES, HUNDREDS OF
BUSINESSES THAT HAVE GROWN UP
00:09:17AROUND THE STANDARDS AND PEOPLE
ARE WORKING FOR THOSE
00:09:20BUSINESSES.
WHAT HAPPENS IF THIS FREEZE GOES
00:09:21INTO EFFECT?
>> THIS IS ONE OF THE MYTHS I
00:09:27THINK THAT SURROUND GOVERNMENT
MANDATES.
00:09:28THE VIEW OF THE PROPONENTS OF
GOVERNMENT MANDATES IN THIS AREA
00:09:32IS ESSENTIALLY THAT CUSTOMERS DO
NOT KNOW ENOUGH TO ACTUALLY DO
00:09:35THINGS THAT WILL MAKE THEIR
HOUSES, THEIR BUSINESS IS LESS
00:09:40ENERGY INTENSIVE, AND THE
GOVERNMENT MUST INTERVENE AND
00:09:44COMMAND CUSTOMERS TO REDUCE
THEIR ELECTRIC USAGE WITH THE
00:09:48MANDATES.
REDUCE YOUR ELECTRIC USAGE
00:09:57WHETHER OR NOT YOUR PRODUCTION
IS ENERGY EFFICIENT.
00:09:58IT IS A NOTION THAT GOVERNMENT
CAN BE SMARTER ABOUT PICKING
00:10:04TECHNOLOGIES, A BLIND SIDE AND
-- SUPPLY-SIDE AND DEMAND-SIDE
00:10:11WILL BASED ON THEIR OWN BUDGETS.
THE REALITY IS, CUSTOMERS ARE
00:10:15PAYING FOR THE MANDATES.
ONE OF THE THINGS WE'VE TRIED TO
00:10:18DO HELP CUSTOMERS SEE HOW MUCH
THESE MANDATES ARE COSTING IS TO
00:10:19POST AN INTERNET TOOL, A MANDATE
TALK YOUR THAT ALLOWS
00:10:25RESIDENTIAL, COMMERCIAL, AND
COMMERCIALS -- CUSTOMERS TO SEE
00:10:34A MUCH THEY'RE PAYING.
BASED UPON AN ASSUMPTION THEY DO
00:10:38NOT KNOW, ENOUGH ABOUT THEIR
BUSINESS TO BE ABLE TO IDENTIFY
00:10:41THEIR ENERGY CONSUMPTION.
THE SAME IS TRUE WITH
00:10:47RESIDENTIAL CUSTOMERS.
WITH ORGANIZATIONS LIKE
00:10:50MCDONALD'S, TO GO MCDONALD'S
WILL PAY ABOUT $2500 A YEAR
00:10:55BECAUSE OF THE MANDATES.
BASED ON AN ASSUMPTION THAT THEY
00:10:57DO NOT KNOW HOW TO DO ENERGY
EFFICIENCY EVEN THOUGH WE TRUST
00:11:02THEM TO MAKE ALL KINDS OF
BUSINESS DECISIONS EVERY DAY.
00:11:03THAT IS THE CLASSIC CONTROVERSY
HERE.
00:11:07THE QUESTION IS NOT ABOUT
WHETHER WE NEED ENERGY
00:11:10EFFICIENCY, OR INNOVATION IN THE
FORM OF NEW TECHNOLOGIES, BUT
00:11:18THAT HAPPENS.
IT HAPPENS IN A MARKET-BASED
00:11:20ECONOMY.
IT WILL CONTINUE TO HAPPEN.
00:11:21IF THESE CLAIMS ABOUT THE LOW
COST OF THESE MANDATES ARE
00:11:27CORRECT, IT WILL THRIVE IN A
COMPETITIVE MARKET, WHERE
00:11:31CUSTOMERS HAVE THE ABILITY TO
CHOOSE THEIR FOR DEVICES.
00:11:34>> CAN YOU RESPOND?
>> THERE IS NO FREE MARKET IN
00:11:39ENERGY IN THE COUNTRY CAN READ
HIS HAVE EARLY REGULATED, ALWAYS
00:11:45HAS BEEN.
THE DELIVERY OF ENERGY TO THE
00:11:46HOMES, UTILITIES ARE ACTUALLY
REGULATED MONOPOLIES.
00:11:50THERE'S INCREASING AMOUNT OF
COMPETITION BETWEEN THEM MADE
00:11:55THEY GET A GUARANTEED RATE OF
RETURN, SO THE COMPANIES THAT WE
00:11:58ARE TALKING ABOUT, THE ADVANCED
ENERGY COMPANIES THAT ARE
00:12:03REPRESENT ARE ACTUALLY SMALL
BUSINESSES FOR THE MOST PART,
00:12:05THAT ARE DOING GOOD WORK THAT I
HAVE NO GUARANTEED RATE OF
00:12:08RETURN.
THEY SUCCEED AND FAIL AND
00:12:14OBEDIENCE TO EACH OTHER.
THAT IS THE MARKETPLACE.
00:12:15THE STANDARDS ARE NOT MANDATES
THAT ARE INTENDED TO SOMEHOW
00:12:22PUSH THE MARKET IN THEIR
DIRECTION.
00:12:23THEIR EFFECT INTENDED TO REDUCE
ENERGY REUSE AS WELL AS GEYSERS
00:12:28OF FIVE SOURCES -- DIVERSIFY
SOURCES.
00:12:36ONLY ABOUT 2.5% OF OUR ENERGY IS
COMING FROM RENEWABLES, AND THE
00:12:41ENERGY REDUCTION REQUIREMENT IS
ONLY 4.5%.
00:12:43THESE THINGS ARE REALLY JUST
GETTING STARTED, THEY ARE NOT
00:12:45DRIVING UP COSTS IN ANY
SIGNIFICANT WAY.
00:12:49THEY'RE REDUCING COST BY
REDUCING CONTENTION.
00:12:52>> BUT YOU DO NOT BELIEVE THAT
IF ALTERNATIVE AND RENEWABLE
00:12:53ENERGY THE DRIVE ON ITS OWN
, THE MANDATES OR NOT?
00:13:02>> THEY ARE A WAY TO
ACCELERATE THE PROCESS OF WHAT
00:13:10WE'RE GOING TO DO ANY WAY.
WE DO NOT VIEW THEM AS SOMETHING
00:13:13THAT IS CRITICAL TO THE
SUCCESSES OF THE INDUSTRY.
00:13:19IF YOU GOT OTHER STATE YOU WILL
FIND CALIFORNIA WHERE POLICIES
00:13:24ARE ACTUALLY MUCH MORE
FAVORABLE.
00:13:25THERE ARE THRIVING, AND IT WILL
HAPPEN, IT WILL STATE
00:13:32TEMPORARY IN OHIO FOR SLOW DOWN
AND STOP THIS THING.
00:13:33A FREEZE IS NOT A FREEZE, IT IS
A REPEAL OF STANDARDS THAT ARE
00:13:40IN THE LOT TODAY.
WHERE WE ARE TODAY, WE ARE IN
00:13:45FULL COMPLIANCE WITH THOSE
ENERGY EFFICIENCY AND
00:13:47RENEWABLES.
BASICALLY, YOU DO NOT GET TO DO
00:13:52BUSINESS THE WAY YOU HAVE BEEN
DOING BUSINESS WITH YOUR SMALL
00:13:54COMPANY THAT IS INVESTED.
YOU'RE GOING TO GO ON A 19 ON
00:14:00HIATUS -- AN 18 MONTH HIATUS
.
00:14:06IT WOULD NOT ABOUT MCDONALD'S,
WE WOULD SAY THAT WE ARE WORRIED
00:14:11ABOUT YOUR HAMBURGERS AND FRENCH
FRIES, AND WE WANT YOU TO STOP
00:14:17WHILE WE STUDY THIS, WE COULD
NOT SURVIVE THAT.
00:14:18>> WE HEAR ALL THE TIME THAT
BUSINESSES LOVE CERTAINTY.
00:14:23THE STANDARDS ARE A CERTAINTY,
AT LEAST THEY WERE BACK IN 2008.
00:14:28DOES NOT THIS FREEZE A REPEAL
THROW THAT INTO AN UNCERTAIN
00:14:32AREA?
>> ANYTIME YOU CHANGE THE LOCK
00:14:37OF A OR MODIFY THE LOOK OF THEIR
LIVES --MODIFY THE LAW,
00:14:47THERE IS A FAIR AMOUNT OF
UNCERTAINTY.
00:14:48THE UNCERTAINTY THAT MR. BOARD
SEEMS TO WANT SEEMS TO COME AT
00:14:50THE THE THE CUSTOMERS.
SO THE UNCERTAINTY THAT IS IN
00:14:55REALITY, IN THE REAL WORLD TO
VISIBLY BEING TRANSFERRED TO
00:14:57CUSTOMERS AND SHOWING UP IN THE
LOOK AT BILLS WHICH ARE
00:14:59INCREASING, NOT DECREASING.
AS DAN FROM THE DISPATCH
00:15:03REPORTED RECENTLY, IN OUR
COMMUNITY ELECTRIC BILLS AND
00:15:09GONE UP ABOUT 40% IN THE TIME
THAT THE MANDATES HAVE BEEN IN
00:15:11PLACE.
THE WHOLE SPEECH ABOUT THESE
00:15:17THINGS ARE REDUCING COST AND
SAVING PEOPLE MONEY, IT IS NOT
00:15:23CONSISTENT WITH REALITY.
THAT IS WHY THE GENERAL ASSEMBLY
00:15:26HAS DECIDED TO TAKE A TIMEOUT, A
PAUSE, LOOK AT THE MANDATES, THE
00:15:37LEGISLATION INCLUDES A STUDY
COMMUNITY THAT WILL HAVE THE
00:15:38ABILITY TO DO THE KINDS OF
THINGS THAT MR. FORD HIMSELF
00:15:42URGED THE GENERAL SUDDENLY TO
DO, THAT IS TO CONDUCT AN
00:15:45ANALYSIS TO TEST AND SEE WHETHER
OR NOT MANDATES AS CURRENTLY
00:15:48EXPRESSED ARE BALANCING RISKS IN
THE RIGHT WAY, ARE READING
00:15:52CUSTOMERS -- TREATING CUSTOMERS
FAVORABLY, ARE THRIVING IN THE
00:16:00MARKET ON THEIR OWN WITHOUT
SUBSIDIES.
00:16:01WHAT IS WRONG WITH STUDYING
THAT?
00:16:04IN THE MEANTIME, CUSTOMERS WILL
BE PROTECTED FROM WHAT IS
00:16:10CURRENTLY VERY SHARP US
UPWARD COMPLIANCE ESCALATION.
00:16:16THE FACT OF THE MATTER IS,
CURRENT LAWS ARE DRIVING US TO
00:16:2325% OF OUR ELECTRIC NEEDS MET
THROUGH ENERGY EFFICIENCY.
00:16:280.5% MET BY RENEWABLES WITH
SPECIFIC CARVEOUTS.
00:16:34WHERE WE ARE RIGHT NOW IS ON AN
UPWARD SLOPING COMPLIANCE
00:16:43OBLIGATION THAT EVERYBODY AGREES
IS NOT SUSTAINABLE.
00:16:44>> I WANT TO ASK YOU ABOUT SOME
OF WHAT HE JUST SAID THERE.
00:16:47WHEN I SPOKE TO FIRST ENERGY
ABOUT THIS A WHILE BACK THEY
00:16:50SINCE THAT -- THEY SAID SINCE
2009 THEY HAVE CHARGE CUSTOMERS
00:16:56OVER $.5 BILLION FOR THESE
PROGRAMS AND WE ACHIEVED A
00:17:01REDUCTION IN ABOUT 2.3%.
THEY STILL TO GET UP TO THAT 25%
00:17:06MARK.
OUR CUSTOMERS NOT PAYING FOR
00:17:09THIS?
>> THEY ARE PAYING FOR A SMALL
00:17:12AMOUNT FOR ENERGY EFFICIENCY AND
RENEWABLES.
00:17:15THE STUDIES THAT WE HAVE SEEN
AND CONDUCTED DONE BY THE
00:17:22OHIO MANUFACTURERS COUNCIL SHOWS
THAT THE BENEFITS TO CONSUMERS
00:17:28HAVE BEEN FAR IN EXCESS OF WHAT
THE COSTS HAVE BEEN HAVE BEEN,
00:17:32AND WILL CONTINUE TO BE THAT WAY
TO THE FUTURE.
00:17:33OUR VIEW IS, CANCELING THE
STANDARDS IS NOT GOING TO
00:17:39ADDRESS THE PROBLEM IN TERMS OF
ESCALATING LECTURES THE COST.
00:17:43THAT WAS IN FACT ONE REASON WHY
THESE STANDARDS WERE
00:17:49IMPACTED -- ENACTED BACK IN
2008.
00:17:53>> YOU DO AGREE THAT THERE'S AN
UPWARD TREND WOULD YOU SAY
00:18:01THERE'S NOT A REASON FOR THAT?
>> THE PRICES OF ENERGY ARE
00:18:07GOING UP, AND THAT IS WHY WE ARE
DOING WHAT WE'RE DOING WITH BILL
00:18:11221.
>> THE ELECTRIC BILL CONSISTS OF
00:18:15VARIOUS THINGS.
THIS CAN GET PRETTY GEEKY
00:18:21FOUR-BALL TO DO NOT DEAL IN THIS
AREA, BUT ONE OF THE THINGS THAT
00:18:23WE KNOW FROM EXPERIENCE BASED
UPON THE STUFF THAT WE DO EVERY
00:18:25DAY, IS THAT THERE IS THIS
FICTION THAT IF YOU REDUCE YOUR
00:18:36ELECTRIC CONSUMPTION, YOU WILL
SEE A CORRESPONDING DECREASE IN
00:18:41ELECTRIC BILLS.
AS CUSTOMERS REDUCE THEIR
00:18:44CONSUMPTION, LISTENING TO THE
ADVOCACY OF FOLKS LIKE MR. FORD,
00:18:49THEY HAVE BEEN LED TO BELIEVE
THAT THEY ARE GOING TO SEE A
00:18:51CORRESPONDING REDUCTION IN THERE
LIKE BELT -- THEIR ELECTRIC
00:18:54BILL.
WE'RE SEEING IN THE REAL
00:18:58WORLD IS A PROFOUND FRUSTRATION
FROM PEOPLE WHO HAVE DONE THINGS
00:19:03THAT WILL REDUCE THEIR ELECTRIC
BILL ONLY TO SEE IT GO UP BY
00:19:0740%.
THE NOTION THAT THESE THINGS ARE
00:19:10NOT CONTRIBUTING TO THE INCREASE
OF THE CUSTOMER IS SEEING ITS
00:19:14INCONSISTENT WITH A FACT-BASED
ANALYSIS OF THE CHARGES THAT ARE
00:19:18ACTUALLY EMBEDDED IN CUSTOMERS
BILLS.
00:19:20THOSE ARE ILLUSTRATED BY THE
CALCULATOR, IF FOLKS WANT TO
00:19:25DETERMINE HOW MUCH THEY'RE
PAYING EACH MONTH THEY CAN GO TO
00:19:28THE INDUSTRIAL ENERGY USERS OF
OHIO'S WEBSITE.
00:19:31WE HAVE A CALCULATOR, A LINK
RIGHT THERE.
00:19:32THEY CAN PUT OUT THEIR KILOWATT
PER HOUR CONSUMPTION OF AND THEY
00:19:41WILL SEE MOST RESIDENTS ARE
PAYING BETWEEN FOUR DOLLARS AND
00:19:42FIVE DOLLARS A MONTH AS THINGS
PRESENTLY STAND OF AND THE
00:19:46NUMBERS WILL GO UP AND
DEFINITELY AS THE CURRENT LAW
00:19:48GRANTS US UP IN THE COMPLIANCE
REQUIREMENTS.
00:19:53>> WHAT ABOUT THESE THINGS --
THERE IS THIS IDEA THAT IF I USE
00:19:59THIS LESS ENERGY BECAUSE OF
RENEWABLES I WILL PAY LESS?
00:20:00>> THE COST OF ENERGY IS GOING,
CONSUMER CONSUMPTION IS GOING
00:20:06DOWN, YOU'RE OBVIOUSLY PAYING
LESS THAN YOU WOULD IF YOU HAD
00:20:09NOT DONE THE ENERGY EFFICIENCY.
YES CAP YOU'RE SAVING MONEY CAN
00:20:13DO AND A ARE PLENTY OF STUDIES
THAT UNDERSCORE THAT SPIRIT OF
00:20:20THE CONSUMER COUNCIL DID A STUDY
ON SENATE BILL 58 THAT SHOWED
00:20:22THAT IF YOU ELIMINATED THE
STANDARDS, IT WOULD RAISE THE
00:20:27AVERAGE HOMEOWNERS ELECTRICITY
PRICES BY ABOUT 500 PLUS DOLLARS
00:20:33A YEAR -- $500 PLUS A YEAR.
JUST LOOKING AT THE WRITER ON
00:20:39YOUR ELECTRIC DOES NOT TELL THE
COMPLETE STORY.
00:20:43CROCS I THINK YOU HAVE SAID FOR
EVERY DOLLAR, THERE IS A FOUR
00:20:46DOLLAR SAVINGS.
IS THAT CORRECT?
00:20:47>> THAT IS ANALYSIS THAT IS BEEN
DONE BY FOLKS OTHER THAN US.
00:20:52THE AMERICAN COUNCIL FOR ENERGY
HAS DONE THOSE STUDIES.
00:20:59QUICK THERE BEEN LOTS OF
STUDIES.
00:21:00WE HAVE BEEN RESPONSIBLE FOR
PRESENTING SOME.
00:21:02THE ASSUMPTIONS THAT ARE MADE IN
THE STUDY, THE CONCLUSIONS.
00:21:06REAL PRACTICAL PEOPLE GO THE
STUDY THAT WE SEE EVERY MONTH.
00:21:14THERE IS NO QUARREL WITH THE
FACT THAT THESE MANDATES ARE
00:21:23MAKING A POSITIVE CONTRIBUTION
TO THE INCREASES THAT CUSTOMERS
00:21:26ARE CURRENTLY PLAYING IN THEIR
ELECTRIC BILL -- PAYING IN THEIR
00:21:30ELECTRIC BILL.
THERE'S NO REDUCTION IN THAT
00:21:33BILL AS A RESULT OF SOME FORWARD
FORECAST THAT SOMEDAY 20 YEARS
00:21:36FROM NOW THERE MAY ACTUALLY BE A
CONSUMER DIVIDEND.
00:21:38JUST FOR A MOMENT HERE, ONE OF
THE THINGS THAT WAS EMBEDDED IN
00:21:43THE MANDATES WHEN THEY WERE
ADOPTED WERE THE ASSUMPTIONS
00:21:46THAT BEFORE THE GREAT RECESSION
GRABBED US ALL THAT WE WERE
00:21:50GOING TO HAVE THIS EXPONENTIAL
GROWTH AND DEMAND FOR
00:21:54ELECTRICITY.
WHAT HAS ACTUALLY HAPPENED IN
00:21:55THE REAL WORLD IS DEMANDED HAS
ABATED SIGNIFICANTLY.
00:21:58WE HAVE ALMOST NO GROWTH.
THAT IS ANOTHER REASON WHY THE
00:22:02GENERAL ASSEMBLY WANTS TO
REVISIT THE MANDATES THAT WERE
00:22:05ADOPTED IN 2008.
THE ASSUMPTION WAS MADE AT THE
00:22:06TIME THAT WAS INCONSISTENT WITH
THE WORLD WE'RE LIVING IN
00:22:12PRESENTLY.
>> YOU ARE QUARRELING WITH IT.
00:22:16>> YES WE ARE, AND I A LOT OF
PEOPLE ARE.
00:22:20THE HOSPITAL ASSOCIATION,
HOSPITALS ARE MAJOR USES OF
00:22:27ENERGY, THEY'LL SEE THE BENEFITS
IN THE STANDARDS, AND THEY ARE
00:22:29SUPPORTING THE RETENTION
ARE GREG THEY'RE NOT QUARRELING
00:22:34WITH THE FACT THAT THE BILLS ARE
INCREASING TO FUND THE MANDATES,
00:22:37WHAT I'M TALKING ABOUT IS THE
MONTHLY CHARTS THAT EVERYBODY IS
00:22:39PAYING.
WHAT MR. FORD IS TALKING ABOUT
00:22:43IS THIS ASSUMPTION THAT 20 YEARS
FROM NOW THERE WILL BE A PAYDAYS
00:22:45RUSTLED UP THROWING MONEY AT
THESE MANDATES.
00:22:46>> I JUST WANT TO RESPOND TO
THAT.
00:22:50THERE'VE BEEN STUDIES DONE BY
THE PCO THAT SHOW THAT A PRICE
00:22:56SUPPRESSION EFFECTS.
YOU ACTUALLY REDUCE THE COST OF
00:22:58POWER BY USING ENERGY
RENEWABLES.
00:23:00THE STATE OF OHIO HAS
ACKNOWLEDGED THIS.
00:23:03WE HAVE USED A MODEL THAT WAS
BUILT BY THE STATE OF OHIO TO
00:23:07PREDICT EXACTLY WHAT THE
ECONOMIC IMPACT WOULD BE ON
00:23:10CHANGES IN ENERGY POLICY.
THEY SURELY -- ONLY HUGE
00:23:15INCREASE IN THE COST OF THE NEXT
10 TO 12 YEARS AND ACTUALLY
00:23:19REVEALED THE STANDARDS.
ALMOST $4 BILLION.
00:23:21THAT IS SIGNIFICANT, DOCUMENTED,
AND OUR DANCE ENERGY -- ADVANCED
00:23:30ENERGY ECONOMY.
>> THE ASSUMPTION IS THAT BY
00:23:38SPENDING THE MONEY WE ARE
REDUCING PRICES, AND MR. FORD
00:23:42RETURNED TO THE STATE OF OHIO
MODEL.
00:23:45HE HAS CHAMPIONED AN ANALYSIS
THAT WAS SUMMARIZED AND
00:23:50PRESENTED FROM THE OHIO STATE
UNIVERSITY.
00:23:55THE OHIOANS THE ANNIVERSARY HAS
INSIDE KNOWLEDGE -- OHIO STATE
00:24:03UNIVERSITY HAS SINCE
ACKNOWLEDGED THAT IT DID NOT
00:24:04CONSIDER WHAT IS ACTUALLY
HAPPENING TO RETAIL BILLS.
00:24:06IT DID NOT CONSIDER THE EFFECT
OF ALL OF THESE WRITERS THAT
00:24:11ADJUST PRICES TO MAKE SURE THAT
THE UTILITY IS COLLECTING THE
00:24:18SAME AMOUNT OF REVENUE,
IRRESPECTIVE OF HOW MUCH
00:24:19CONSUMPTION HAS KURT --
OCCURRED.
00:24:21I DO NOT KNOW WHEN HE CONTINUES
TO CLING TO THE STUDIES WHEN THE
00:24:27FOLKS THAT ARE RESPONSIBLE FOR
THEM HAVE ACKNOWLEDGED THAT THE
00:24:30STUDIES DO NOT EMBRACE A
COMPLETE ANALYSIS.
00:24:32WE THINK THE STUDIES ARE
INCORRECT, BUT AGAIN, IF PEOPLE
00:24:38HAVE ANY QUESTION ABOUT WHAT IS
ACTUALLY HAPPENING TO THEIR
00:24:39ELECTRIC EELS, THE BEST AND MOST
REVILED WILL SOURCE OF
00:24:42INFORMATION IS THE ELECTRIC WILL
-- BILL.
00:24:46>> THE CALCULATOR IS ON YOUR
WEBSITE, AND YOU ARE USING THAT
00:24:53INFORMATION.
QUICKLY PUT IT OUT THERE
00:24:54PUBLICLY BECAUSE WE WANTED
PEOPLE TO TEST IT.
00:24:55>> IT IS OUR INFORMATION, IT IS
EACH CUSTOMER'S KILOWATT OURS.
00:25:04YOU PUT YOUR KILOWATT OURS THAT
COMES FROM YOUR ELECTRIC ILK OF
00:25:06AND THE CHARGES ARE PUBLIC
CHARGES IF YOU KNOW WHERE TO
00:25:09LOOK FOR THEM.
IT IS SIMPLY A MATTER OF
00:25:13MULTIPLYING THE CHARGE TIMES THE
KILOWATT HOURS THAT ARE SHOWN IN
00:25:16YOUR ELECTRIC BELL.
THOSE CHARGES ARE HITTING YOUR
00:25:19ELECTRIC BILL, WE TRIED TO BRING
SOME TRANSPARENCY TO THE PROCESS
00:25:21TO DEAL WITH SOME OF THE MYTHS
THAT HAVE BEEN ADVOCATED A
00:25:24REPRESENTATIVE BY SOME OF THE
PROPONENTS.
00:25:26>> WE'LL COME BACK WITH THIS
NEXT WEEK.
00:25:28THANK YOU FOR BEING HERE.
>> AND THAT'S IT FOR THIS WEEK.
00:25:33FOR MY COLLEAGUES AT OHIO PUBLIC
RADIO AND TELEVISION, THANKS FOR
00:25:36WATCHING.
IF YOU'D LIKE TO ASK QUESTIONS,
00:25:37MAKE COMMENTS, OR WATCH THIS
WEEK'S SHOW OR EARLIER EPISODES,
00:25:39PLEASE VISIT OUR WEBSITE AT
STATENEWS.ORG, OR WATCH ON THE
00:25:42OHIO CHANNEL'S WEBSITE.
AND YOU CAN FOLLOW JO INGLES,
00:25:48ANDY CHOW AND ME ON TWITTER.
AND PLEASE JOIN US AGAIN NEXT
00:25:51TIME FOR "THE STATE OF OHIO".
>> SUPPORT FOR "THE STATE OF
00:26:22OHIO" COMES FROM THE LAW OFFICES
OF PORTER, WRIGHT, MORRIS &
00:26:24ARTHUR LLP., HELPING BUSINESSES
AND INDIVIDUALS SOLVE COMPLEX
00:26:26LEGAL PROBLEMS THROUGHOUT OHIO,
ACROSS THE COUNTRY AND AROUND
00:26:28THE WORLD -- ON THE WEB AT
PORTERWRIGHT.COM.
00:26:31AND FROM THE OHIO EDUCATION
ASSOCIATION, REPRESENTING
00:26:33131,000 TEACHERS, SUPPORT
PROFESSIONALS AND HIGHER
00:26:36EDUCATION FACULTY WHO ARE
WORKING FOR GREAT PUBLIC SCHOOLS
00:26:39FOR EVERY CHILD, ONLINE AT
Note : Transcripts are compiled from uncorrected captions