From GCP’s Gary Smith:

After a long Memorial Day weekend, I bring you two weeks worth of reports from the House Alternative Energy Committee. Last Wednesday saw, arguably, the most compelling testimony to date—if for no other reason than Dr. Norm Johnston was a credible witness and a dynamic speaker. Dr. Johnston, who holds a PhD in Polymer Science, is the CEO of McMaster Energy Enterprises and the Executive Director of the Northwest Ohio Alternative Energy Business Council (NOAE). Attending the hearing with Dr. Johnston was a representative of the Cleveland Foundation (NOAE’s newest member), Richard Stuebi, BP Fellow for Energy and Environmental Advancement. Read some of Richard’s views on the environment and energy at www.cleantechblog.com.

Much of the committee was already familiar with Dr. Johnston. If you recall in my very first report to you, I reported on the Alternative Energy Committee’s tour of Wood County, Ohio. He reiterated what he told all of us several weeks back: wind energy and solar energy are only part of the answer. In fact, wind and solar energies are complimentary. That is, solar energy is generated best during the daytime and in the summer months whereas wind is typically stronger at night and in the winter months—so they’re complimentary. Even better these two energy resources are FREE!!

The problem, according to Dr. Johnston is that right now, there are no incentives to create solar energy here in Ohio. What is needed is a market focus—a renewable energy portfolio mandated by the state, market forces that contain solar and wind requirements, a change in distributed generation laws (need logical and inexpensive requirements for grid connection), and deregulation stands need to be good for at least twenty years. To learn more about McMaster Energy Enterprises and NOAE you can visit http://www.bricker.com/LegalServices/Practice/Energy/altenergy/nwohioalt.asp or if you know Richard, give him a call!!

The May 30, 2007 hearing of the House Alternative Energy Committee saw educational testimony from Ohio’s Consumers’ Counsel, Janine L. Migden-Ostrander and from Kevin Maynard, Director of Utilities for the City of Bowling Green, Ohio.

The Consumers’ Counsel started her testimony with some very ear-catching and eye-opening statistics. Allow me to share them here:

There are approximately 67 years of economically recoverable supplies of natural gas remaining in North America. Do we want to be competing in the world market with Europe, China and India for supplies of natural gas coming from Venezuela, Nigeria and Algeria, she asks?
By 2030, the demand for electricity is expected to double. This is due to emerging countries like China and India. According to Migden-Ostrander, electricity demand in the United States is expected to grow by 40%.
A 15 percent national Renewable Portfolio Standard (RPS) would save consumers nearly $100 billion by the year 2020.
An aggressive energy program encompassing eight Midwest states (including Ohio) would save all consumers $4.4 billion annually by 2010.

Impressive figures, would you not agree? Energy solutions, according to Migden-Ostrander must be “developed in concert”. That is, there is no single alternative energy source answer, the answer must be found in a portfolio that offers several options. Such a portfolio will provide Ohio consumers reasonably priced and reliable power.

The Consumers’ Counsel also offered several suggestions on how to develop a comprehensive energy policy. Those suggestions include an aggressive energy efficiency program, installation of smart meters, a renewable energy portfolio standard, promotion of alternative energy solutions and the development of alternative energy by customers through distributed generation.

Also testifying from the Ohio Consumers’ Counsel was Wilson Gonzalez, a senior regulatory analyst. Mr. Gonzalez testified almost exclusively on the issue of energy efficiency—promoting what he called an energy efficiency resource standard which could be created by a market-based mechanism to encourage more efficient use of energy, achieving a white-tag trading system to create savings through market-based trading, and a stand which consists of energy saving targets for load serving entities like utilities and marketers.

Testifying on behalf of AMP-Ohio (http://www.amp-ohio.org/) was Kevin Maynard, Director of Utilities for the City of Bowling Green (http://www.bgohio.org/utility-director/index.html). Mr. Maynard, like many of the witnesses who came before him testified to the need for diversity when it comes to developing an alternative energy policy. His presentation included a history of AMP-Ohio, of Ohio’s Municipal Electric System (86 muni-electric systems in Ohio—Cleveland being the largest, the Village of Custer being the smallest), of the capabilities of the Bowling Green municipal utilites, and of the numerous benefits of the various alternative energy solutions such as Hydroelectric, landfill gas, solar power, and wind farms. In summary, Maynard promoted the need for diversifying the state’s energy portfolio, taking a pragmatic, realistic approach (while staying cognizant of what is happening with alternative energy at the federal level), recognize the needs of different regions with respect to renewable resources (one size does not fit all), include “run of the river hydro in any renewable energy standards and the need to provide incentives for non-profit entities.

Within the next few weeks, the House Alternative Energy Committee will be hearing more educational testimony before reporting their findings (in the form of a bill) to the full House of Representatives. I look forward to reporting to you the contents of any legislation as it becomes available. Stay tuned . . .