NATURAL GAS POWER PLANT GENERATION IN OHIO

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NATURAL GAS POWER PLANT GENERATION IN

OHIO

614.227.4914dborchers@bricker.com | @DylanBorchers

Dylan Borchers

© Bricker & Eckler LLP 2019 | www.bricker.com

Roadmap• History of Restructuring Ohio’s Electricity Market• The Current Status of Competition in Ohio• New Natural Gas-Fired Generation Development

in Ohio• Crossroads for the Competitive Market: House

Bill 6 and other Pending Legislation

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Ohio’s Path to a Competitive Market

© Bricker & Eckler LLP 2019 | www.bricker.com

Current Status of Competition in OhioOSU/CSU Study:

• Consumers in Ohio saved nearly $15 billion dollars over the last five years as a result of deregulation

• Another $15 billion is savings are excepted in the next five years

However, overall customer bills have not decreased.• Nonbypassable distribution riders have increased

significantly

Generation is developed, owned, and operated by non-utility entities*

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New Natural Gas Power Plant Development in Ohio

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New Investment Capital From Around the World

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Economic Impacts

7

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Lateral Pipeline Development

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The new pipeline infrastructure being built to serve the new natural gas plants are also attracting new industries . For example, Alpont LLC, a subsidiary of Interstate Chemical, recently located a new facility in the City of Oregon because of the availability of natural gas due to the lateral pipeline serving the Oregon Clean Energy Center.

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Demand for Shale Gas

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Attraction opportunity for Ohio

Methanol plants

Ethane Steam Crackers On-purpose propylene

plants

Ammonia plants

Upstream extractors

Gas Pipelines

Fractionators/processors Power generators

Raw fossil fuels

Complex chemicals

Includes indirect and induced jobs

Refineries

*Not exhaustive 10

Industrial chemicals, coatings, and polymers companies/ JO Wins

Liquids Pipelines

Alkylation plants

Liquids Storage

Pre-2011 Energy/PetroChem Presence in Ohio(from: JobsOhio)

© Bricker & Eckler LLP 2019 | www.bricker.com 11*Not exhaustive

Methanol plants

Steam crackers Propane On-purpose propylene

plants

Ammonia plants

Upstream extractors

Gas Pipelines

Fractionators/processors Power generators

Raw fossil fuels

Complex chemicals

Includes indirect and induced jobs

Refineries

*Not exhaustive 11

Liquids Storage

Industrial chemicals, coatings, and polymers companies

Butane Alkylation

plants Lordstown Energy

Liquids Pipelines

Renewables

Generation Pipeline

Initiatives Focused on the Value Chain(from: JobsOhio)

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Competition at a Crossroads Ohio House Bill 6• Out of market subsidies for nuclear and coal facilities• HB 6 is the outcome of nearly 5 years of effort by the utilities• Ohio has already lost projects because of this legislation.

Referendum Campaign Update

Additional threats to competition:• Solar PPA Cases at PUCO• HB 246 & 247

© Bricker & Eckler LLP 2019 | www.bricker.com

Questions?

13

Dylan BorchersSenior Associate, Bricker & Eckler LLP

100 S. Third StreetColumbus, OH 43215

614.227.4914

Columbus

dborchers@bricker.com