Summer supply prices for natural gas thus far have averaged about a $0.45 per Mcf discount vs. last summer. Unfortunately, the typical residential/commercial customer only consumes around 12-20% of their annual gas needs between the months of May – October.
The good news is winter NYMEX gas prices are currently trading ~25% lower than this past winter’s prices. While prices will inevitably move over the coming months, supply & demand fundamentals indicate a well-supplied market that is unlikely to see major surprises ahead of any frigid weather.
As you have likely seen and heard in the news, the Ohio House and Senate voted in favor of House Bill 6 (HB6). Shortly after passage, Governor DeWine signed the bill into law. While HB6 includes a number of energy provisions, there are four key components.
- The first is the collection of $170 million annually from 2021-2027 through charges included on investor-owned utility consumers’ bills. A majority of this money will be used to support Ohio’s nuclear power plants, and the remaining portion will be used in the development of specific renewable projects in the State.
- The second is the collection of additional funds from 2020 through 2030 to support legacy generation resources, including two OVEC coal-fired generating plants in Ohio and Indiana. These costs will also be paid by consumers through their electric bills.
- The third component is the revision of the State’s renewable energy resource goals for electricity sold in Ohio, or Renewable Portfolio Standards (RPS). HB6 revised the renewable energy resource goal to 8.5% of electricity generated by the end of 2026, no specific solar requirement, and no requirement after 2026. This change goes into effect January 1, 2020.
- Finally, the fourth main component focuses on the investor-owned utility energy efficiency and peak-demand reduction programs. House Bill 6 will terminate these programs at the end of 2020, as long as the cumulative energy savings for that utility is at least 17.5% of the established baseline. In addition, each investor-owned utility will have to create rate schedules specifically applicable to county fairs and agricultural societies.
*Please contact your Chamber Energy consultant Emilie Snider for additional information, or if you have any questions or concerns. 419-491-1017 or firstname.lastname@example.org