Industry groups challenge AEP’S solar push
At a public hearing held by state regulators last month, residents and environmental groups gushed about an American Electric Power Ohio proposal to develop two solar farms in southern Ohio.
Now, several groups, led by the Ohio Consumers’ Counsel, are fighting back, saying the AEP plan is expensive, unnecessary and goes against the state’s goal of deregulated markets.
“If indeed these renewable energy projects are economical, then market forces should be sufficient to see these or other renewable energy projects through development,” according to testimony filed last week with the Public Utilities Commission of Ohio by the Ohio Manufacturers’ Association.
That group, the Ohio Coal Association, Industrial Energy Users-ohio and Kroger are among the opponents to the project along with the Consumers’ Counsel.
AEP Ohio announced in September its proposal to develop 400 megawatts of solar power in Highland County as part of a commitment it made in 2016 to develop 900 megawatts of renewable power.
The project would result in 4,000 construction jobs and 150 permanent jobs. A typical residential customer who uses 1,000 kilowatt hours of electricity a month initially would pay 28 cents more a month to pay for the plant, but that number is projected to drop over time and lead to credits on a customer’s bill, something opponents also dispute.
AEP estimates that customers will save $200 million over the 20-year life of the project compared with other energy sources for electricity. If approved by the state, the project could be operational before the end of 2021.
But consumers already have options if they want to power their homes with renewable energy, the opponents said.
“If AEP Ohio retail customers value wind and solar generation, they can purchase it in the marketplace, as the Ohio General Assembly envisioned when it enacted laws deregulating the generation market, which would enable lower electricity prices and (incentivize) innovations for the benefit of customers,” a Consumers’ Counsel witness said in a filing with the PUCO. “There are numerous competitive offerings of 100 percent green energy, including offers by AEP Ohio’s competitive affiliate, AEP Energy.”
The Ohio Coal Association is concerned that the plan could hurt the Ohio economy.
“When AEP Ohio customers pay more for electricity, they spend less on local businesses, hurting the local economy, reducing sales tax revenue, reducing employment, and discouraging new businesses from locating in Ohio,” the association said.
AEP said in a statement that customers want more renewable energy resources in Ohio.
“Several dozen customers encouraged the PUCO to support our plan during a public hearing last month, and when customers were surveyed last fall, they told us it was important to use more renewable energy resources,” the company said Friday. “Our plan to bring the largest solar farm in the Midwest to Appalachian Ohio would help us provide our customers across Ohio with the power they need and bring hundreds of jobs to the region.”
mawilliams@dispatch.com @Bizmarkwilliams