The Emerging Ohio Market. Presented by PUCO Chairman Todd A. Snitchler 21 st Century Manufacturing Task Force November 26, 2012. Before electric restructuring.
Presented by PUCO Chairman Todd A. Snitchler
21st Century Manufacturing Task Force
November 26, 2012
Prior to restructuring, electricity was generated and supplied to most of Ohio from four electric distribution utilities (EDU’s):
Dayton Power & Light
Note: FirstEnergy includes Cleveland Illuminating Co., Ohio Edison, and Toledo Edison
Step 1: In 1999, Am. Sub. SB 3, the Ohio Electric Restructuring Act, was passed. It authorized the restructuring of the electric industry in Ohio. At the same time, 23 other states also restructured their electric utility markets.
First Step: Market development period. A five year period from 2001 through 2005 during which it was expected that the retail markets would emerge. Current electric rates were frozen during this period.
Second Step: Rate stabilization period. A three year period from 2006 – 2009 resulting from the failure of the retail markets to develop.
Examples of the three typical types of offers on the market today:
* This information is readily available on the PUCO’s Apples to Apples Chart at www.puco.ohio.gov
More suppliers entering Ohio with competitive offers. These offers will be more than just X% off the SSO price, for example:
The PUCO works closely with large load consumers who provide significant employment in Ohio to ensure the company is able to manage its utility costs.
For those large load companies that consume high amounts of energy, the PUCO works with the company and utilities to create what are known as reasonable rate arrangements.
In my* view, reasonable arrangements will not be needed as competition grows in Ohioand additional changes to the developing market occur.
*The view expressed above is mine and does not necessarily reflect the views of the PUCO or the Kasich administration.