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00:00:01ANNOUNCER: SUPPORT FOR THE
STATEWIDE BROADCAST OF THE
00:00:04"STATE OF OHIO" COMES FROM THE
LAW FIRM OF PORTER, WRIGHT,
00:00:06MORRIS AND ARTHUR, LLP.
HELPING BUSINESSES AND
00:00:09INDIVIDUALS SOLVE COMPLEX LEGAL
PROBLEMS THROUGHOUT OHIO, ACROSS
00:00:12THE COUNTRY AND AROUND THE
WORLD.
00:00:14ON THE WEB AT PORTERWRIGHT.COM.
AND FROM THE OHIO EDUCATION
00:00:18ASSOCIATION, REPRESENTING
120,000 MEMBERS, WHO WORK TO
00:00:21INSPIRE THEIR STUDENTS TO THINK
CREATIVELY AND EXPERIENCE THE
00:00:23JOY OF LEARNING.
ONLINE AT OHEA.ORG.
00:00:29KAREN: LAWMAKERS PUSH FORWARD A
TASK FORCE TO LOOK INTO MEDICAL
00:00:32MARIJUANA.
AND A CONTROVERSIAL PAIR OF RATE
00:00:35HIKE PLANS THAT ARE BEING CALLED
COAL PLANT BAILOUTS ARE SPARKING
00:00:39LOTS OF ATTENTION.
BUT THE UTILITIES SAY THERE ARE
00:00:43BENEFITS FOR CONSUMERS THAT
AREN'T BEING BROUGHT TO LIGHT.
00:00:47WE'LL HEAR FROM LEADERS ON BOTH
SIDES.
00:00:49ALL THIS WEEK IN "THE STATE OF
OHIO."
00:00:52?
?
00:00:54? KAREN: JUST TWO WEEKS INTO THE
YEAR, THERE APPEARS TO BE
00:01:01MOVEMENT ON AN ISSUE THAT VOTERS
HAVE SAID THEY WANT ACTION ON --
00:01:05MEDICAL MARIJUANA.
LATE THURSDAY, REPUBLICAN HOUSE
00:01:09SPEAKER CLIFF ROSENBERGER OF
CLARKSVILLE AND REPUBLICAN
00:01:12REPRESENTATIVE KIRK SCHURING OF
CANTON ANNOUNCED THE FORMATION
00:01:14OF A BIPARTISAN 15 MEMBER
MEDICAL MARIJUANA TASK FORCE TO
00:01:17STUDY THE ISSUE.
IT INCLUDES THE EXPECTED GROUPS,
00:01:21MEDICAL GROUPS, BUSINESS GROUPS
AND LAW ENFORCEMENT, BUT ALSO
00:01:26REPUBLICAN REPRESENTATIVE AND
DR. STEVE HUFFMAN OF TIPP CITY,
00:01:29DEMOCRATIC REPRESENTATIVE DAN
RAMOS OF LORAIN, AND THE CHIEF
00:01:32FUNDRAISER AND LAWYER FOR
RESPONSIBLEOHIO.
00:01:35THAT'S THE GROUP THAT BACKED
ISSUE 3, WHICH WOULD HAVE
00:01:38LEGALIZED BOTH MEDICINAL AND
RECREATIONAL POT IF VOTERS
00:01:41HADN'T REJECTED IT BY A 2-1
MARGIN LAST FALL.
00:01:45JIMMY GOULD WAS IN CHARGE OF
RAISING AROUND $25 MILLION TO
00:01:50PUSH ISSUE 3, AND SAID HE'S
PLEASED TO BE A PART OF THIS
00:01:53PANEL, AND WILL ABANDON ANY
OTHER EFFORTS TO BRING BALLOT
00:01:56ISSUES RELATED TO MARIJUANA TO
VOTERS FOR NOW.
00:02:04>> AND SPEND A LOT OF MONEY COME
A LOT OF TIME, WE HEARD WHAT THE
00:02:06PUBLIC SAID.
RESPONSIBLE OHIO DOES NOT EXIST.
00:02:09WE ARE HERE AS A GROUP COME ALL
OF US, TO COME UP WITH THE BEST
00:02:16SOLUTION SO PEOPLE CAN HAVE
MEDICAL MARIJUANA IN THE STATE
00:02:19OF OHIO.
KAREN: ATTORNEY CHRIS STOCK SAID
00:02:24HE'S BEEN INFORMED EFFORTS TO
PASS THE FRESH START ACT, WHICH
00:02:25WOULD HAVE ALLOWED OHIOANS WITH
NON-VIOLENT MARIJUANA RELATED
00:02:27CONVICTIONS TO CLEAR THEIR
RECORDS, HAVE BEEN HALTED.
00:02:31ROSENBERGER SAID THE PRESENCE OF
THE FORMER RESPONSIBLEOHIO
00:02:32LEADERS SHOULD SHOW THAT HE'S
INTERESTED IN TALKING TO ANY
00:02:35OTHER GROUPS THAT ARE
CONSIDERING BALLOT ISSUES ON
00:02:37MEDICAL MARIJUANA.
>> I UNDERSTAND THAT THERE ARE
00:02:47OTHER GROUPS OUT THERE CURRENTLY
LOOKING TO DO BALLOT INITIATIVES
00:02:49RIGHT NOW.
I WOULD INVITE THOSE GROUPS TO
00:02:53TAKE A TIMEOUT, THERE IS NO
PROBLEM IN PARTICIPATING WITH
00:02:56THIS GROUP IN THIS TASK FORCE.
UNDERSTAND THAT YOU HAVE A
00:03:01WILLING PARTNER TO LISTEN TO
YOU.
00:03:02KAREN: THE GROUP WILL MEET ON
THURSDAYS STARTING JANUARY 28,
00:03:04WITH A MARCH 31 DEADLINE FOR THE
PANEL TO DELIVER A REPORT SO
00:03:08THERE'S TIME FOR LAWMAKERS TO
TAKE ACTION THIS YEAR.
00:03:11THE OHIO PRIMARY LESS THAN TWO
MONTHS AWAY, AND THE NOVEMBER
00:03:14VOTE IS LESS THAN 300 DAYS AWAY.
SECRETARY OF STATE JON HUSTED
00:03:18SAYS HIS OFFICE IS RENEWING
EFFORTS TO HELP RECRUIT AND
00:03:20TRAIN POLL WORKERS AS THE
CLOSELY WATCHED BATTLEGROUND
00:03:23STATE PREPARES FOR ANOTHER
PRESIDENTIAL ELECTION.
00:03:26HUSTED TOLD THE OHIO ASSOCIATION
OF ELECTIONS OFFICIALS THIS WEEK
00:03:29THAT HIS OFFICE ALSO HAS BEEN
CLEANING UP THE VOTER ROLLS AND
00:03:33IS WORKING ON WHAT TO DO ABOUT
MAILED IN BALLOTS THAT ARRIVE
00:03:35WITHOUT POSTMARKS.
1,500 OF THOSE BALLOTS WEREN'T
00:03:39ABLE TO BE COUNTED LAST FALL.
IT SEEMS UNLIKELY THERE WILL BE
00:03:43A DEBATE BETWEEN THE TWO
CANDIDATES IN THE DEMOCRATIC US
00:03:48SENATE PRIMARY, CINCINNATI CITY
COUNCILMAN P.G. SITTENFELD AND
00:03:50FORMER GOVERNOR TED STRICKLAND.
SITTENFELD IS VERY FAR BEHIND
00:03:53STRICKLAND, BUT SAYS HE WANTS
THE CHANCE TO FACE HIM PRIMARILY
00:03:56OVER THE ISSUE OF GUNS.
STRICKLAND HAS SAID HE BEGAN
00:03:59SUPPORTING BACKGROUND CHECKS FOR
GUN OWNERS AFTER THE SHOOTINGS
00:04:03AT SANDY HOOK ELEMENTARY SCHOOL
IN CONNECTICUT IN 2012.
00:04:10BUT THIS WEEK, SITTENFELD SAYS
AUDIO FROM A CALL-IN SHOW ON
00:04:14WOSU RADIO IN COLUMBUS AND THE
OHIO CHANNEL LAST MARCH SHOWS
00:04:16STRICKLAND'S CHANGE OF HEART WAS
BASED ON POLITICS.
00:04:19ON THE SHOW "ALL SIDES WITH ANN
FISHER," WHICH AIRED MORE THAN
00:04:22TWO YEARS AFTER SANDY HOOK,
STRICKLAND CAN BE HEARD SAYING
00:04:25THAT HE HAS NOT LOBBIED FOR
ADDITIONAL GUN LAWS, AND THAT HE
00:04:31HAS HELD AT LEAST AN A RATING
WITH THE NRA AS A CONGRESSMAN.
00:04:35STRICKLAND HAS RUN A FAIRLY
LOW-PROFILE CAMPAIGN SO FAR, AND
00:04:37HAS DONE VERY FEW PUBLIC
APPEARANCES.
00:04:39A WRITTEN STATEMENT FROM
STRICKLAND'S CAMPAIGN SAYS HE
00:04:42SUPPORTS BACKGROUND CHECKS AND
CLOSING THE LOOPHOLES THAT NOW
00:04:45EXIST TO KEEP WEAPONS OUT OF THE
HANDS OF TERRORISTS, CRIMINALS
00:04:48AND THE MENTALLY ILL.
WE HOPE TO BRING YOU
00:04:53CONVERSATIONS WITH BOTH
CANDIDATES IN THE DEMOCRATIC US
00:04:55SENATE PRIMARY NEXT MONTH.
STATE REGULATORS ARE LOOKING
00:04:58OVER SIMILAR PROPOSALS PUT
FORWARD BY TWO ELECTRIC
00:05:00UTILITIES THAT HAVE TURNED OUT
TO BE CONTROVERSIAL.
00:05:03AMERICAN ELECTRIC POWER AND
FIRSTENERGY WANT THE PUBLIC
00:05:06UTILITIES COMMISSION TO ALLOW
THEM TO HIKE CUSTOMERS' MONTHLY
00:05:10BILLS FOR THE NEXT EIGHT YEARS
SO THEY CAN KEEP COSTLY COAL
00:05:13POWER PLANTS AND A NUCLEAR POWER
PLANT RUNNING.
00:05:17THE COMPANIES ARE HAVING TROUBLE
WITH THOSE PLANTS, WHICH AREN'T
00:05:19COMPETING WITH NATURAL GAS AND
ALTERNATIVE ENERGY IN THE ENERGY
00:05:23MARKETPLACE.
THE COMPANIES SAY THERE ARE
00:05:26BENEFITS FOR THEIR 3.5 MILLION
CUSTOMERS FROM THE HIGHER BILLS.
00:05:30FIRST OF ALL, THOSE INCREASES
WILL HELP THEM GUARANTEE
00:05:32RELIABILITY OF THE GRID, WHICH
WILL ENSURE THAT OHIOANS HAVE
00:05:35ENOUGH ENERGY TO AVOID OUTAGES.
AND SECONDLY, AEP IS PROMISING
00:05:40IT WILL SHUT DOWN THREE COAL
PLANTS BY 2030, AND MAKE THE
00:05:44LARGEST SOLAR POWER INVESTMENT
IN OHIO HISTORY.
00:05:48THAT HAS BROUGHT IN THE SUPPORT
OF A SOMEWHAT UNLIKELY ALLY --
00:05:51THE SIERRA CLUB.
BUT OTHER ENVIRONMENTAL,
00:05:55CONSUMER AND ELECTRICITY
GENERATOR GROUPS ARE SPEAKING
00:05:57OUT AGAINST THE PLANS, WHICH
THEY CALL "BAILOUTS."
00:06:00THERE ARE ESTIMATES THAT THE
UTILITY BILL INCREASES COULD
00:06:04COST CONSUMERS UP TO $6 BILLION
OVER EIGHT YEARS.
00:06:07AND BECAUSE OHIO'S ELECTRICITY
INDUSTRY IS NO LONGER REGULATED,
00:06:10MANY PEOPLE GET THEIR POWER NOW
THROUGH LOCAL DISTRIBUTING
00:06:14COMPANIES WHICH BUY ELECTRICITY
IN COMPETITIVE WHOLESALE
00:06:16AUCTIONS.
IT'S FEARED THE PLANS COULD CUT
00:06:20THAT PRACTICE OFF COMPLETELY.
AND MORE OHIOANS COULD BE
00:06:24AFFECTED DOWN THE ROAD.
DAYTON POWER & LIGHT IS WAITING
00:06:27FOR WHAT HAPPENS IN THIS CASE
WHILE IT CONSIDERS ITS OWN
00:06:30SIMILAR PLAN.
I'M PLEASED TO WELCOME TWO OF
00:06:33THE MOST KNOWLEDGEABLE PEOPLE IN
OHIO WHEN IT COMES TO THESE
00:06:35PLANS.
BILL RIDMANN IS THE VICE
00:06:38PRESIDENT OF RATES AND
REGULATORY AFFAIRS FOR
00:06:40FIRSTENERGY.
TODD SNITCHLER IS THE
00:06:43SPOKESPERSON FOR THE ALLIANCE
FOR ENERGY CHOICE, A COALITION
00:06:45OF ELECTRICITY GENERATORS AND
OTHERS THAT THE GROUP SAYS
00:06:49"PROMOTES FAIRNESS AND
COMPETITION IN THE ELECTRICITY
00:06:52MARKET."
THANK YOU FOR BEING HERE.
00:06:56THIS IS A COMPLICATED ISSUE AND
I WANT TO GET -- GIVE BOTH OF
00:07:04YOU A CHANCE TO STATE YOUR
PIECES.
00:07:05WHY SHOULD OHIOANS WANT TO SEE
THIS GO FORWARD, ESPECIALLY IF
00:07:09THEY ARE YOUR CUSTOMERS AND THEY
COULD SEE THESE INCREASES ON
00:07:14THEIR BILLS?
IF THEY ARE NOT, THEY MIGHT SEE
00:07:18INCREASES DOWN THE ROAD ANYWHERE
ELSE.
00:07:20>> WE THINK THIS IS GOOD FOR THE
CITIZENS OF OHIO BECAUSE IT
00:07:26PROVIDES RESOURCE DIVERSITY.
WE HAVE IN THE PLAN AND
00:07:39UNDERWRITER FROM A NUCLEAR POWER
PLANT AND A COAL PLANT.
00:07:40WE ARE LOOKING AT THE BEST
INTERESTS OF OUR CUSTOMERS IN
00:07:43TERMS OF PROVIDING DIVERSITY
RESOURCES.
00:07:45THAT IS VERY IMPORTANT FOR
CONSUMERS.
00:07:49MANY OF OUR CUSTOMERS WHO HAVE
SIGNED ON TO THE AGREEMENT SEE
00:07:55IT THE SAME WAY.
THERE IS POTENTIAL FOR THE
00:08:00PROJECTION FOR PRICE INCREASES
IN THE FUTURE.
00:08:04WITH THIS PLAN DOES IS BASICALLY
TO LIMIT OR DECREASE THE AMOUNT
00:08:16OF VOLATILITY IN PRICE INCREASES
THAT WILL GO INTO THE FUTURE.
00:08:17IT IS NOT A CHARGE AS WE SEE IT.
IN THE FIRST FEW YEARS AND THEN
00:08:26IT BECOMES A CREDIT AND THEN THE
CUSTOMERS DECIDE.
00:08:27KAREN: SOME GROUPS, INCLUDING
THE OHIO ENVIRONMENT WILL
00:08:33COUNSEL SAY THIS IS A COAL PLANT
BAILOUT.
00:08:35>> ABSOLUTELY NOT.
THERE IS A STRONG COAL-FIRED
00:08:44PLANT THAT HAS ALL THE
ENVIRONMENTAL CONTROLS ON IT,
00:08:50RECENTLY PUT ON IN THE LAST FIVE
OR SIX YEARS.
00:08:51IT IS A STRONG COAL PLANT AND
PROVIDES DIVERSITY RESOURCES AND
00:08:56FITS INTO AN OVERALL ENERGY PLAN
FOR THE STATE OF OHIO.
00:08:59KAREN: YOU AND OTHERS HAVE SAID
THIS IS A COAL PLANT BAILOUT.
00:09:05TODD: THE PERSPECTIVE WE HAVE ON
THIS IS IT DOESN'T DO ALL THE
00:09:12THINGS IT IS PROPOSED TO DO.
YOU ASKED ABOUT RELIABILITY.
00:09:15THE ISSUE ABOUT RELIABILITY IS
AN ISSUE THAT IS HANDLED BY THE
00:09:19REGIONAL TRANSMISSION
ORGANIZATION.
00:09:21THEY ARE RESPONSIBLE FOR MAKING
SURE THERE IS ADEQUATE POWER
00:09:27DELIVERED AT LOWEST COST.
THEY DETERMINED THERE IS NOT A
00:09:31RELIABILITY PROBLEM.
THEY PUT OUT A STATEMENT THAT
00:09:34SAYS THEY BELIEVE OHIO HAS
GOTTEN VERY GOOD RESULTS AND WE
00:09:40HAVE ADEQUATE RESOURCES.
THE REQUIREMENT IS A 15.4%
00:09:44RESERVE MARGIN EVEN AFTER A WAVE
OF RETIREMENTS.
00:09:49THERE'S NOT CONCERN ABOUT FUEL
GENERATION.
00:09:56BILL RAISES A GOOD POINT, THE
ISSUE IS OHIO STILL GENERATES
00:10:0170% OF ITS POWER FROM COAL
PLANTS.
00:10:03THE GAS PLANS ARE SHOULDER --
IT'S NOT A QUESTION OF WHICH
00:10:13FUEL IS BETTER OR WHICH IS NOT.
THE FUEL PRICE PROJECTIONS FOR
00:10:18NATURAL GAS GOING FORWARD
CONTINUED TO TREND DOWNWARD AS A
00:10:20RESULT OF MERCILESS GAS.
UBS ISSUED A REPORT THAT LOWERED
00:10:28THEIR GAS PROJECTIONS OVER THE
NEXT 3-4 YEARS.
00:10:29THE QUESTION BECOMES, WHAT IS
THE MOST ECONOMIC UNIT FOR
00:10:34OHIOANS TO SECURE THE POWER
FROM?
00:10:35IF NATURAL GAS IS THE MARGINAL
PRICE RIGHT NOW, THOSE ARE THE
00:10:40RESOURCES THAT SHOULD RUN.
MEMBERS OF THE ALLIANCE ALSO
00:10:43HAVE COAL PLANTS IN THEIR FLEET
AS WELL.
00:10:46IT'S NOT AS IF THEY ARE
ANTI-COAL OR PRO-GAS.
00:10:50KAREN: I WAS GOING TO ASK YOU,
WITHOUT THIS, WHAT WOULD YOU
00:10:58PROPOSE?
THESE ARE PUBLICLY TRADED
00:11:02COMPANIES.
HOW DO THEY ANSWER TO THEIR
00:11:03SHAREHOLDERS?
TODD: AT THE END OF THE DAY COME
00:11:08EVERY MERCHANT GENERATOR TO MAKE
HIM BUT HE POWER THAT IS AN
00:11:13UNREGULATED ENTITY HAS TO
COMPETE IN THE MARKETPLACE.
00:11:19-- AT THE END OF THE DAY COME
Y -- THEY ONLY PRODUCE POWER.
00:11:36THEY ARE HAVING TO COMPETE WITH
COMPANIES TO PROVIDE THE POWER
00:11:39AT THE WHOLESALE AND RETAIL
LEVEL.
00:11:40THEY FOUND WAYS TO BE
COMPETITIVE AND TO FIND WAYS TO
00:11:43MAKE MONEY DOING WHAT THEY DO IN
RESPONSE TO SHAREHOLDERS WHO
00:11:50EXPECT A RATE OF RETURN.
THERE ARE FOUR POWER PLANTS AND
00:11:53UNDER CONSTRUCTION THAT ARE
INVESTOR RISK AND SHAREHOLDER
00:12:00RISK, NOT RATEPAYER RISK.
THERE ARE MORE UNITS THAT HAVE
00:12:04BEEN APPLIED FOR.
THERE IS A TREND TO SEE NEW
00:12:08GAS-FIRED GENERATION COMING
ONLINE.
00:12:09SHOULD RETIREMENTS OF ECONOMIC
UNITS OCCUR MOTHER ARE OTHER --
00:12:15SHOULD RETIREMENTS OF UNECONOMIC
UNITS OCCUR, THERE ARE OTHER
00:12:21UNITS.
KAREN: YOU WOULD BE OPERATING
00:12:23WITH SUBSIDIES THAT EITHER
COMPANIES DON'T NECESSARILY GET
00:12:27--
BILL: THERE ARE MANY COMPANIES
00:12:30THAT ARE IN A SITUATION WHERE
THEY ARE REGULATED AND THEIR
00:12:36GENERATION GETS REGULATED.
COSTS RECOVERED.
00:12:39THE IDEA THIS IS SOMETHING NEW
JUST IS NOT TRUE.
00:12:46THERE ARE MANY STATES LIKE WEST
VIRGINIA AND VIRGINIA THAT
00:12:52BASICALLY HAVE REGULATED
GENERATION AND GET THEIR COSTS
00:12:56RECOVERED IN THAT SITUATION.
WHEN YOU LOOK AT THE OPPONENTS,
00:13:03ONE OF THE OPPONENTS QUITE
FRANKLY HAS GOTTEN A SIMILAR
00:13:06TYPE OF DEAL DONE IN NEW YORK.
IF YOU LOOK AT ANOTHER OPPONENT
00:13:09OF THIS PLAN, IF YOU GO TO THEIR
WEBSITE AND LOOK AT WHAT THEY
00:13:14ARE SAYING, THEY ARE HOPING FOR
THESE PLANTS AND OTHER PLANS TO
00:13:18RETIRE.
THAT IS THERE PLAN SO THAT WHEN
00:13:22PRICES GO UP, THEY BENEFIT FROM
INCREASED PRICES OVER THE
00:13:25LONG TERM.
WE WERE LOOKING UP FOR OUR
00:13:29CUSTOMERS IN TERMS OF OVERALL
BENEFIT FOR THEM.
00:13:30NOT NECESSARILY WANTING THEM TO
BE EXPOSED TO HIGH PRICES THAT
00:13:34THE OTHER SUPPLIERS ARE HOPING
FOR IN THIS MARKET.
00:13:38HAVING PLANTS RETIRE
PREMATURELY.
00:13:41KAREN: A LOT OF NUMBERS HAVE
BEEN THROWN OUT AROUND HERE.
00:13:45THE CONSUMER COUNCIL SAYS
CUSTOMERS COULD BE PAYING MORE
00:13:48THAN $800 OR MORE OVER EIGHT
YEARS.
00:13:50YOU'VE COME UP WITH A NUMBER
THAT WAS DIFFERENT THAN THAT.
00:13:53HOW MUCH ARE WE TALKING ABOUT?
>> BASED ON OUR PROJECTIONS IN
00:14:04TERMS OF WHAT THE MARKET PRICE
WILL DO IN THE FUTURE, FOR THE
00:14:07FIRST YEAR, THE CHARGE IS ABOUT
$3.25 FOR A KILOWATT HOUR.
00:14:13THAT REPRESENTS ABOUT 3%.
AT THE SAME TIME, THE PRICES ARE
00:14:20CURRENTLY LOW.
THE PRICE GOES DOWN AND THEY
00:14:28OFFSET ONE ANOTHER.
THIS PLAN IS A FINANCIAL HEDGE.
00:14:32AS PRICES ARE LOW IN THE
MARKETPLACE AND MARKET PRICES GO
00:14:36UP, THE CREDIT IS APPLIED TO
CUSTOMERS AND THERE'S A
00:14:43STABILIZED IMPACT AND LESS
VOLATILITY AND LESS PRICE
00:14:46INCREASES FOR OUR CUSTOMERS.
KAREN: THE CONSUMERS COUNCIL
00:14:52ESTIMATE OF $800 OVER EIGHT
YEARS IS NOT CORRECT?
00:14:53>> NOT UNDER OUR PROJECTIONS.
OUR MARKET PRICES ARE BASED ON
00:14:59CONSULTANTS THAT PROVIDE
PROJECTIONS FOR THE UNITED
00:15:02STATES GOVERNMENT.
A WELL-ESTABLISHED FIRM.
00:15:04THREE DOLLARS HIS ABOUT 3%.
WE ARE LOOKING ABOUT -- THREE
00:15:17DOLLARS IS ABOUT 3%.
TODD: THERE'S A COUPLE OF
00:15:25VEHICLES IN PLACE THAT ALLOW
CUSTOMERS TO HAVE GREATER
00:15:26CONTROL OVER THAT PRICE
STABILITY.
00:15:28CUSTOMERS HAVE THE ABILITY TO
SHOP IN OHIO NOW.
00:15:30RESIDENTIAL CUSTOMERS ACROSS THE
ENTIRE STATE AVERAGE 60%
00:15:34SHOPPING COMMERCIAL -- THEY HAVE
THE ABILITY TO PICK A PRODUCT
00:15:42THEY THINK MANAGES THEIR RISK
PROFILE.
00:15:43THEY CAN DO A 1, 2, 3 YEAR FIXED
PRODUCT.
00:15:47THERE'S ALREADY A MECHANISM IN
PLACE FOR PEOPLE TO ENSURE THAT
00:15:55THEY ARE COMFORTABLE WITH WHERE
THAT PRICING MODEL LOOKS LIKE IT
00:15:57WILL BE.
THAT IS ONE TOOL IN EFFECT.
00:15:59CUSTOMERS WILL BE PAYING TWICE.
IF I'M A SHOPPING CUSTOMER AND I
00:16:06WOULD LIKE TO CHOOSE A DIFFERENT
SUPPLIER, THIS NOT BY POSSIBLE
00:16:11CHARGE MEANS I WILL END UP
PAYING US A DISTRIBUTION
00:16:12CUSTOMER SOME ADDITIONAL CHARGE
PER MONTH.
00:16:14PLUS, THE SHOPPING CHARGE I MAY
OR MAY NOT GET AS A RESULT OF --
00:16:20I'M PAYING TWICE FOR THE SAME
LEVEL OF SERVICE.
00:16:22THAT DOES NOT SEEM REASONABLE.
AS YOU LOOK AT THE INPUT AND
00:16:27CALCULATING THE ACTUAL COST,
THEY ARE PROJECTIONS.
00:16:31I DON'T THINK ANYONE CAN SAY
WITH ABSOLUTE CERTAINTY WHAT THE
00:16:36PRICE OF GAS WILL BE.
WHAT THE PRICE OF POWER WILL BE.
00:16:37THE EXPERT HAS SAID WE THINK IT
WILL BE THIS.
00:16:40THEIR EXPERT SAYS IT WILL BE
THAT AND ANOTHER EXPERT ALSO
00:16:46WEIGHED IN AND THEY HAVE THEIR
OWN OPINION.
00:16:47I'M NOT COMFORTABLE WHEN THERE
ARE EXISTING WAYS FOR PEOPLE TO
00:16:51CONTROL OR HEDGE THEIR BUY.
BILL: WHAT IS TELLING IS THAT
00:17:01THOSE WHO HAVE SIGNED ON TO OUR
STIPULATIONS, WHEN YOU LOOK AT
00:17:04IT, THE LARGE INDUSTRIAL
CUSTOMERS OF OUR COMPANIES,
00:17:10WHETHER YOUR AP, THE MOST
SOPHISTICATED, THEY HAVE THEIR
00:17:19OWN ENERGY MANAGERS, THEY GO
OUT, THEY KNOW WHAT THE MARKET
00:17:22IS, THEY ARE ALL SUPPORTING
THESE PLANS.
00:17:25THE INDUSTRIAL CUSTOMERS WHO ARE
VERY IMPORTANT IN OHIO ARE
00:17:29RECOGNIZING THE BENEFITS OF THE
PLAN OVERALL WITHIN THE NEXT
00:17:37EIGHT YEARS.
TODD: MANY DID SIGN ON.
00:17:40IF YOU LOOK AT THE TERMS OF THE
SETTLEMENT AGREEMENT, EVERYONE
00:17:42THAT SIGNED ON RECEIVED
SOMETHING AS A TRADE-OFF FOR
00:17:46THEIR SUPPORT.
WHETHER IT WAS INTERRUPTIBLE
00:17:49CREDIT OR A DIFFERENT RATE,
WHATEVER THE PARTICULAR ITEM MAY
00:17:52BE, THERE WAS SOMETHING THEY
GAINED.
00:17:54I DON'T KNOW EVERY CUSTOMER'S
PROFILE, WHETHER THEY WILL ALL
00:18:03BE DIRECTLY IMPACTED POSITIVELY
OR NEGATIVELY, BUT I KNOW THOSE
00:18:05WHO DID NOT SIGN THE SETTLEMENT
ARE GOING TO BE AN A POSITION
00:18:09WHERE THEY WILL BE EXPOSED TO AN
INCREASED CHARGE.
00:18:11KAREN: YOU ARE OPPOSED.
YOU SAID FIRSTENERGY'S DEAL WAS
00:18:20A CORPORATE BAILOUT.
WAS THERE ANYTHING THAT SET THIS
00:18:25IN MOTION?
TODD: IF YOU LOOK AT MY TENURE,
00:18:30I WAS VERY SUPPORTIVE OF THE
MARKET.
00:18:33AS WAS FIRSTENERGY AT THE TIME.
I TRIED HARD TO GET THE MARKET
00:18:38TO WHERE TO BE -- WHERE IT WOULD
BE.
00:18:40WE WERE WELL ON OUR WAY TO DOING
THAT.
00:18:43THE POWER AND LIGHT WAS PUT INTO
THAT POSTURE AND DUKE HAD A
00:18:55FLASH CUT AND THEY ULTIMATELY
SOLD THEIR GENERATION TO ANOTHER
00:19:00MERCHANT POWER PROVIDER.
WE WERE TRENDING IN ONE
00:19:03DIRECTION AND NOW IT APPEARS
THEY WOULD LIKE A REVERSAL OF
00:19:08THAT EFFORT TO MOVE INTO A MORE
MARKET-ORIENTED PRICE CONTROL
00:19:10CONCEPT.
WHAT I'D EXPECTED THIS -- WOULD
00:19:14I HAVE EXPECTED THIS?
NO.
00:19:15THE COMPANIES ULTIMATELY FILE
WHAT COMES IN AND THE
00:19:20COMMISSIONERS HAVE TO DEAL WITH
THIS APPLICATION.
00:19:23KAREN: WHAT DOES THIS SET IN
MOTION FOR THE COMPETITIVE
00:19:27MARKETPLACE?
FOR THE SHOPPING AROUND, SO TO
00:19:31SPEAK?
BILL: FIRST ENERGY HAS HAD THE
00:19:38MOST SHOPPING IN ITS TERRITORY
FROM DAY ONE.
00:19:39CONTINUES TO HAVE THE MOST
SHOPPING.
00:19:40IT WILL CONTINUE UNDER THIS PPA.
WE HAVE 80% OF OUR LOAD BEING
00:19:47SHOPPED.
I DON'T ANTICIPATE THIS HAVING
00:19:51ANY IMPACT ON THAT.
THAT WILL CONTINUE TO HAPPEN.
00:19:52IT MAY EVEN GROW UNDER THIS.
RETAIL COMPETITION AND THE
00:20:00RETAIL MARKET IN TERMS OF THE
ULTIMATE SUPPLIERS WILL CONTINUE
00:20:04TO BE VERY STRONG.
IN TERMS OF THE OTHER BIG
00:20:10INDUSTRIALS THAT HAVE SIGNED ON,
INTERRUPTIBLE CONTRACTS, ONE OF
00:20:15THE FIRST JOBS I HAD 40 YEARS
AGO WAS TO HELP NEGOTIATING
00:20:17INTERRUPTIBLE CONTRACTS WITH OUR
TWO MAJOR CUSTOMERS UP IN THE
00:20:22CLEVELAND AREA.
THEY'VE BEEN AROUND EVEN LONGER
00:20:25THAN THAT.
THEY HAVE BEEN EXISTENCE FOR 50
00:20:29YEARS.
IS NOTHING NEW THERE IN TERMS OF
00:20:32INTERRUPTIBLE CUSTOMERS AND
CUSTOMERS GETTING A BENEFIT.
00:20:34THEY SEE THE SIGNIFICANCE AND
THE IMPORTANCE OF THIS BEING
00:20:40PASSED FOR THEIR OWN LONG-TERM
LONGEVITY AND BEING ECONOMICALLY
00:20:48STABLE AND BEING PROTECTED FROM
PRICE INCREASES IN THE FUTURE.
00:20:50KAREN: LET ME ASK YOU, BILL,
WHAT IS THE PROBABILITY THAT
00:20:56FIRSTENERGY WILL BE BACK HERE
WITH ANOTHER PPA IN EIGHT YEARS?
00:20:57BILL: EIGHT YEARS IS A LONG
TIME.
00:21:01I THINK I WOULD BE IN A
DIFFERENT JOB.
00:21:04KAREN: PEOPLE MIGHT BE
SKEPTICAL.
00:21:07CUSTOMERS MIGHT SAY I DON'T
TRUST THIS WILL BE IT.
00:21:11BILL: I EXPECT THERE WILL BE
TRANSITION THE MARKET.
00:21:18WE WILL SEE WHAT HAPPENS IN
EIGHT YEARS.
00:21:20THE MARKET WILL HAVE CHANGED.
WE WILL SEE AT THAT POINT.
00:21:26IF WE DECIDE TO PURSUE IT THAT
HOPEFULLY THE MARKET TRANSITIONS
00:21:37-- EVERYONE WILL TAKE A LOOK AT
IT IN THAT POINT IN TIME.
00:21:40YOU HAVE THE FLEX ABILITY EIGHT
YEARS FROM NOW TO DECIDE WAS IT
00:21:45BENEFICIAL OR NOT.
WHAT DO WE DO FORWARD?
00:21:47THIS IS A GOOD POLICY FOR THE
STATE OF OHIO.
00:21:51KAREN: WE HAVE OTHER PLAYERS IN
THIS -- THEY THINK THEY COULD DO
00:21:57THIS CHEAPER.
EXELON IS NOT A PROVIDER THAT
00:22:00HAS JOINED IN.
DYNEGY IS PART OF YOUR
00:22:04COALITION.
WHAT ABOUT RENEWABLES AND
00:22:08ALTERNATIVE ENERGY RESOURCES?
WOULDN'T WE HAVE MORE
00:22:14OPPORTUNITY TO BRING THOSE IN
THAT PORTFOLIO IN IF WE DIDN'T
00:22:17HAVE THE GREEN ENERGY STANDARDS?
TODD: YOU'RE ASKING A
00:22:23MULTIFACETED QUESTION ON THAT.
SENATOR SEITZ HAS RESPONDED THAT
00:22:25HE HAS BEEN UNHAPPY WITH THE AEP
PROPOSAL BECAUSE IT INCLUDES
00:22:30RENEWABLES WHEN THE LEGISLATURE
HAS INDICATED THAT THEY WANT TO
00:22:35PRIEST THIS WHILE THEY FIGURE
OUT WHAT THEY ULTIMATELY DECIDE
00:22:37TO DO.
-- WANT TO FREEZE THIS.
00:22:38WE WILL REVERT TO WHAT THE
STANDARDS WERE PRIOR TO THE
00:22:44FREEZE.
I DON'T KNOW THAT THIS WILL
00:22:46NECESSARILY INDICATE IF WE WILL
SEE MORE OR LESS.
00:22:48IT IS UP IN THE AIR ABOUT HOW
THAT PLAYS OUT.
00:22:52THE LEGISLATURE SET IN MOTION A
LEGAL CONSTRUCT UNDER WHICH THE
00:22:59UTILITIES ARE SUPPOSED TO
OPERATE WITH THE COMPETITIVE
00:23:00MARKET PLACE.
OUR GROUP THINKS THAT IS BEING
00:23:03PUSHED THE OTHER DIRECTION.
WE ARE IN SUPPORT OF CONTINUING
00:23:06WHERE WE HAVE FINALLY GONE TOO.
WHETHER IT WAS UTILITY HOLDING
00:23:12COMPANIES OR OTHER PARTICIPANTS,
WE ARE SEEING EXACTLY THAT
00:23:17HAPPEN.
POWER PRICES COME DOWN, THE
00:23:20RESOURCES WE DID NOT KNOW WERE
AVAILABLE EVEN FIVE OR 10 YEARS
00:23:22AGO WITH SHALE THAT ARE NOW
AVAILABLE -- EIGHT YEARS IS A
00:23:27LONG TIME TO PROJECT.
WE WOULD NOT HAVE KNOWN EIGHT
00:23:29YEARS AGO THAT WE COULD GENERATE
THIS COST-EFFECTIVE POWER USING
00:23:33NATURAL GAS.
THAT HAS YET TO BE DETERMINED.
00:23:35IT IS ONE OF THE PIECES THAT
WILL PLAY INTO THE OUTCOME OF
00:23:39HOW THESE CASES PLAY OUT IN THE
LONG TERM.
00:23:40KAREN: IF THIS IS A GOOD IDEA,
WHY NOT PUT IT ON INVESTORS
00:23:47INSTEAD OF ON CUSTOMERS?
BILL: IT IS ON INVESTORS.
00:23:50THERE'S A LOT OF OVERSIGHT BY
THE COMMISSION.
00:23:53HAVING 40 YEARS OF WORK
EXPERIENCE WORKING WITH THIS
00:23:59COMMISSION, THEY ARE VERY
PROFESSIONAL AND HAVE EXPERTISE.
00:24:06THERE IS RISK FOR THE COMPANIES
UNDER THIS PROPOSAL.
00:24:10WHEN YOU LOOK AT OVERALL -- IT'S
IN THE BEST INTEREST OF NOT ONLY
00:24:19FIRSTENERGY COME UP AT STATE OF
OHIO AND OUR CUSTOMERS IN TERMS
00:24:21OF KEEPING 3000 JOBS IN THE
STATE OF OHIO.
00:24:24THAT DOES NOT EVEN INCLUDE THE
COAL MINERS FROM WHICH COAL IS
00:24:28BURNED, PROVIDING $1 BILLION IN
ECONOMIC VALUE ANNUALLY FOR THE
00:24:35STATE OF OHIO.
OTHERS WHO PRODUCE POWER OUT OF
00:24:39THE STATE CANNOT PRODUCE THAT
KIND OF BENEFIT FOR THE
00:24:44RESIDENTS IN THE STATE OF OHIO.
BRINGING POWER IN FROM ILLINOIS
00:24:49DOES NOT HELP THE STATE IN TERMS
OF ECONOMIC ELEMENT.
00:24:51-- ECONOMIC ELEMENT.
-- ECONOMIC DEVELOPMENT.
00:24:58TODD: IT WILL BE APPEALED TO THE
STATE SUPREME COURT AND OR
00:25:02FEDERAL COURT.
WE WILL HEAR ABOUT THIS CASE FOR
00:25:07A WILD TO COME.
BILL IS RIGHT WHEN WE LOOK AT
00:25:09JOBS.
IT IS NOT A ZERO-SUM GAME.
00:25:13THERE'S A CONSTRUCTION WORKER
BUILDING THOSE NEW GAS-FIRED
00:25:17FACILITIES IN FIVE DIFFERENT
LOCATIONS AROUND THE STATE, THE
00:25:23MULTIBILLION-DOLLAR INVESTMENT
MADE BY ALL THOSE.
00:25:24DYNEGY HAS 5400 MEGAWATTS OF
OHIO BASED GENERATION THAT THEY
00:25:29ARE WILLING TO PUT ON THE LINE
TO SUBSTANTIATE THEIR CLAIM TO
00:25:35BE ABLE TO SAVE OHIO CUSTOMERS
MONEY.
00:25:36THAT IS WORTHY OF CONSIDERATION.
KAREN: THANK YOU FOR BEING HERE.
00:25:41I APPRECIATE IT.
AND THAT'S IT FOR THIS WEEK.
00:25:44FOR MY COLLEAGUES AT OHIO PUBLIC
RADIO AND TELEVISION, THANKS FOR
00:25:46WATCHING.
IF YOU'D LIKE TO ASK QUESTIONS,
00:25:47MAKE COMMENTS, OR WATCH THIS
WEEK'S SHOW OR EARLIER EPISODES,
00:25:49PLEASE VISIT OUR WEBSITE AT
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00:25:51OHIO CHANNEL'S WEBSITE OR AT
IDEASTREAM.ORG/OHIO.
00:25:55AND YOU CAN FOLLOW JO INGLES,
ANDY CHOW AND ME ON TWITTER.
00:25:58AND PLEASE JOIN US AGAIN NEXT
TIME FOR "THE STATE OF OHIO."
00:26:02?
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