Ohio Environmental Council, November 30, 2011
Submitted to Ohio House Public Utilities Committee by Nolan Moser, Staff Attorney and Director of Energy & Clean Air Programs, Ohio Environmental Council (OEC).
Clean energy is cost competitive energy. I’d like to start today by clearing the air on costs.
Specifically, I’ll discuss the true price of generating electricity from renewable energy resources, the cost of utility‐run energy efficiency programs, and how these resources compare to traditional electricity generation in Ohio.
In 2008, when the General Assembly passed Senate Bill 221 with overwhelmingly bipartisan support (Ohio House vote 93‐1; Ohio Senate vote 32‐0), this legislation established Ohio’s Energy Efficiency Resource Standard (EERS), Renewable Portfolio Standard (RPS) and Advanced Energy Resource Standard (AERS). Combined, these three policies have saved consumers millions of dollars each year.
Prices for electricity resources range widely. For non‐alternative new resources, natural gas combined cycle has an estimated installed cost of 8 cents per kilowatt hour (kwh), traditional coal 11.1 cents per kwh, nuclear power 12.25 cents per kwh, and advanced coal power averages about 12.55 cents per kwh. The most expensive resource is natural gas peaking capacity, which averages 28.35 cents per kwh.
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