Energy

On Tuesday, The Washington Post explored the buzz around “AI factories,” a term championed by tech leaders to liken today’s AI revolution to the transformative Industrial Age.

Ross McGregor, president of Pentaflex and board member of the Ohio Manufacturers’ Association, offered a compelling perspective in the article by contrasting the physical craftsmanship of traditional manufacturing with the abstract, intangible nature of AI development. At Pentaflex, raw steel is transformed into heavy-duty truck brake systems through a hands-on, precision-driven process — a world apart from the virtual “machinery” that powers AI.

The article raises a pivotal question: does the “AI factory” label genuinely capture the essence of AI innovation, or is it merely a catchy metaphor with little substance? 10/21/2025

Senate Bill 219, introduced by state Sen. Al Landis, R-Dover, had its first hearing this week before the Ohio Senate Energy Committee. It’s the first major update to Ohio’s oil and gas laws in more than a decade. The bill creates a protected fund to plug and clean up abandoned wells, streamlines notifications, and modernizes regulations — winning strong bipartisan backing from industry and environmental groups alike.

While focused on oil and gas, the bill also impacts manufacturers near orphaned wells by ensuring steady funding for remediation, reducing environmental risks like groundwater contamination and methane leaks that affect industrial operations and compliance. Streamlined processes may free land for industrial development, aiding manufacturers’ expansion.

Though it imposes no new taxes or regulations on manufacturers, the bill could spur remediation jobs, indirectly benefiting manufacturing sectors tied to energy or equipment supply. As it advances through the Senate Energy and Natural Resources Committee, the Ohio Manufacturers’ Association will continue to monitor its progress. 10/23/2025

Regional electric grid controller PJM has been experiencing significant issues with their interconnection queue backlog in recent years. In 2022, PJM closed its interconnection queue to new generation projects stating it would implement queue reform and be able to process interconnection requests faster after it cleared the existing queue. The reform was approved and rolled out in 2022, and has delayed new generation project applications until 2026. This delay in accepting new projects has helped increase electricity prices in recent PJM energy auctions.

PJM is implementing this reform with a clustered process, also called a “first-ready, first-served” approach. This reform includes two transition cycles to help clear the existing queue. PJM recently announced that it had completed the study process for all Transition Cycle 1 (TC1) projects. TC1 includes almost 9,900 megawatts (MW) of interconnection requests across the PJM region, with more than 440 MW of solar and storage approved to be installed in Ohio. Additionally, PJM has announced approval of 410 MW of natural gas capacity in Ohio under the Reliability Resource Initiative. Although this 850 MW of generation being approved does not guarantee that it will all come online before the next few capacity auctions, or at all, as PJM’s interconnection approval is just one step of many to bring transmission generation projects to fruition. 10/23/2025

As part of the recently enacted House Bill 15 supported by the Ohio Manufacturers’ Association (OMA), electric distribution utilities (EDUs) must now submit more detailed annual reliability reports to the Public Utilities Commission of Ohio (PUCO) and the commission must publish an annual report that summarizes trends and recommends grid upgrades. Previously, EDUs submitted reliability reports, but now, they are required to include more information to the PUCO such as percentage of customers that experience long interruptions, circuits with persistent reliability issues and planned upgrades to improve reliability.

Currently EDUs do not report interruptions that are less than five minutes. Some EDUs are suggesting not reporting interruptions due to major weather events within the new reports. On Fri., Oct. 3, the OMA Energy Group submitted comments to the PUCO encouraging the commission to clarify that EDUs need to report on all interruptions. The OMA Energy Group believes all EDUs should be providing an ever-improving, reliable electricity system and should be held accountable if not. 10/16/25

Scioto Energy has joined forces with Environ Energy, a national energy brokerage and consulting group. This partnership will allow Scioto Energy to expand its ability to provide broader services across a wider geographic area. For its valued customers, partners, and friends, it will remain business as usual. Stakeholders will continue working with the same dedicated team and trusted contacts. Susanne Buckley will continue to serve as the primary interface with the Ohio Manufacturers’ Association (OMA), providing energy market insights and support to all OMA members.

“Scioto represents exactly the kind of company we look to partner with, deeply respected in its region, committed to client success, and aligned with our mission to simplify the energy transition for businesses,” said Chris Sternberg, CEO of Environ Energy. “As we continue to grow, our focus remains on partnerships that create value for clients and strengthen the energy management ecosystem we’ve pioneered at Environ Energy.” 10/13/2025

Amazon founder and tech visionary Jeff Bezos recently predicted during Italian Tech Week 2025 that within the next 10 to 20 years, massive, solar-powered data centers will be built in space, powered by uninterrupted sunlight and natural cooling.

Bezos believes these orbital facilities could be more efficient and cost-effective than terrestrial data centers due to unlimited, weather-free solar energy and an end to limitations on power, cooling and water that exist on Earth.

Artificial intelligence chip producer NVIDIA seems to agree, according to its blog, citing 10-times lower energy costs and reduced energy consumption on Earth. The chip maker operates a startup called Starcloud. 10/16/2025

Global Infrastructure Partners, backed by BlackRock, is in advanced talks to acquire AES Corporation in a deal potentially exceeding $40 billion. AES has rapidly expanded its renewable energy portfolio amid reported rising U.S. power demand—driven by AI and data center growth.

For Ohio manufacturers, this signals a shift toward cleaner, more robust energy infrastructure. The outcome could impact energy costs and supply stability, key factors for industrial competitiveness. AES operates the electric utility system formerly known as Dayton Power & Light (DPL). Read more. 10/9/2025

Data center development has been raising concerns for future grid costs and reliability due to their large electricity needs. In a Climate Week NYC interview, Energy Secretary Chris Wright suggested that data center developers should provide their own electricity if there is not enough available in their grid area. This could be accomplished with behind-the-meter generation, where facilities build generation assets on or near their site and only connect them to their facility, and not the grid. Customers building their own on-site power for their sole use is being referred to as ‘bring your own generation’ (BYOG).

Customer-owned and sited generation has existed for decades, especially at larger manufacturing facilities. The OMA played an instrumental role in advancing state legislation to incent the development of behind the meter generation. 10/9/2025

Electric utilities across the country are forecasting significant increases in demand due to new large loads such as data centers and advanced manufacturing. The OMA has raised concerns about the accuracy of these forecasts, however, and warned that inflated forecasts are driving up customer bills without delivering new generation. Earlier this month, the OMA asked the Public Utilities Commission of Ohio (PUCO) to open an investigation into AEP Ohio’s load forecasts to verify their accuracy and methodology.

Regional transmission operators (RTOs) including PJM are responsible for verifying the accuracy forecasts for planning purposes and to set market demand. Recently, the Federal Energy Regulatory Commission (FERC) Chairman Rosner wrote a letter to the RTOs addressing concerns of load forecast inflation. He states in his letter that, “improving forecasts by even a few percentage points in the right direction … can impact billions of dollars in investments and customer bills.” His letter reflects the concerns of the Electricity Customer Alliance’s letter that was sent to FERC earlier this year, as well as the OMA. 10/2/2025

This week, the OMA testified in opposition to Substitute Senate Bill 103, currently under review by the Senate Public Utilities Committee. While the substitute bill reflects improvements over earlier versions, the OMA continues to raise serious concerns. SB 103 extends certain provisions from House Bill 15 to natural gas, water and sewer utilities — including the use of forecasted test years. However, unlike HB 15, the bill does not completely eliminate above-market charges or outdated subsidies.

As currently drafted, Sub. SB 103 would allow gas, water and sewer utilities to benefit from forward-looking rate-setting mechanisms while continuing to collect revenue through capital investment riders. In essence, the natural gas and water companies will get to “double dip” under the new Sub. SB 103, receiving revenue through both expedited rate cases that are forecasted and capital investment riders that are also forecasted. 10/2/2025

At the recent Ohio Manufacturers’ Energy Conference, panelists debated the effectiveness of the state of Ohio’s ability to police against corruption and undue utility influence in the wake of the House Bill 6 bribery scandal.

Panelist Ashley Brown depicted how global anti-corruption scholars regard Ohio’s PUCO as “a complete failure in regulation.” Brown, a former PUCO commissioner himself, and faculty member at Harvard’s Electricity Policy Group, also detailed FirstEnergy’s Distribution Modernization Rider order in which then-chief regulator Asim Haque knowingly approved improper customer payments for the Akron-based company to pad profits.

OMA energy counsel Kim Bojko described how the PUCO’s blind acceptance of utility load forecasts is an ongoing example of continued problems with the agency. Tim Ling of OMA member company Plaskolite humorously likened the PUCO to “fight club.” Read more courtesy of the Hannah Report. 10/2/2025

Appearing at the OMA’s Manufacturers’ Energy Conference weeks ago in Westerville, Kent Chandler, the former chair of the Kentucky Public Service Commission, presented data questioning reported electric load growth forecasts. His slides illustrated past inflation of forecasts compared to actual demand. Chandler, a senior fellow with the R Street Institute, described the incentives for utilities to inflate load forecasts.

In a defense of competitive generation markets, Chandler also shared data on the significant customer costs Georgians will pay for the most recent nuclear power generating station and cited other examples as a warning of how regulated companies have hoisted costs on captive customers. 10/2/2025

President Donald Trump’s recent call to shift from quarterly to semiannual corporate reporting has drawn cautious support from global investors focused on long-term sustainability. Reuters reports that President Trump’s call to shift back from quarterly to semiannual reporting encourages short-termism, a view echoed by business leaders such as Warren Buffett and Jamie Dimon.

Surprisingly, some sustainability-focused investors—often at odds with Trump’s policies—agree. They believe less frequent reporting could help companies focus more on long-term strategy and environmental, social and governance (ESG) issues, provided transparency is maintained. Critics, however, warn that safeguards would be needed to protect investor interests and ensure timely disclosures. 9/25/2025

On Sept. 22, a bipartisan conference was held with PJM state governors and PJM leadership to discuss the future of states’ involvement with the regional transmission operator (RTO). Most governors expressed frustration with PJM over rising capacity prices since July 2024 and are advocated for increased state representation. Seven governors wrote a letter addressing these issues. It was announced that 11 states, including Ohio, plan to form a “governors’ collaborative” to work on PJM issues. State governors called for PJM to give states the right to file PJM-related requests with the Federal Energy Regulatory Commission (FERC) as well as a bigger role in selecting PJM’s board members.

Not everyone agrees with increasing states’ involvement with PJM’s processes. The President and CEO of the Electric Power Supply Association published a press release urging states to focus on issues such as streamlining permitting and easing regulations on power producers. PJM’s CEO, Manu Asthana, said PJM remains open to discussions with state governors but noted any changes to the RTO’s operations would require action through either PJM’s Members Committee approval or by filing a complaint with FERC. 9/25/2025

The Cleveland Plain Dealer published a column by the OMA’s Ryan Augsburger highlighting accountability problems with our power system and its regulators, all of which are fueling the recent spike in electricity bills. The OMA has long contended that competitive markets will respond to demand for generation better than government fiat. Recent efforts by utilities and our grid operator are designed to undermine competition.

“2019’s House Bill 6—the corruption scandal that forced Ohioans to pay for inefficient coal power plants, including one in Indiana—is proof of what happens when these interests succeed. Some of the same players are again pushing public subsidies and re-regulation, using manufactured demand spikes and reliability fears to justify utility company gains at the public’s expense,” lamented the OMA president. 9/16/2025

This week, the OMA filed a motion with the Public Utilities Commission of Ohio (PUCO) to open an investigation into American Electric Power’s (AEP) load forecast. The OMA has reason to believe load forecasts are inflated, causing customers to pay more without offsetting benefits.

The matter will be discussed at the Ohio Manufacturers’ Energy Conference this week. Manufacturers concerned about rising electricity rates are encouraged to be active in the OMA Energy Group. Contact staff to learn more. 9/17/2025

The OMA issued its latest edition of RetoolingOhio, this time level-setting the regulatory environment governing how power prices are set. While much has occurred in Ohio to favorably address customer power bills, much remains to be done in the regional market. Grid operator PJM has allowed utilities to drive up customer power costs without offsetting benefits. It needs to be held to account.

At the same time, state regulators at the PUCO have an opportunity to protect customers through prudent regulation. All of these topics were addressed at the Ohio Manufacturers’ Energy Conference yesterday. “To strengthen Ohio’s economy, we need to continue to choose competitive energy policies. Beware of entrenched interests and their friends,” said OMA president Ryan Augsburger at the conference. See next week’s edition of OMA’s Leadership Briefing for conference coverage. 9/17/2025

Last week, the Public Utilities Commission of Ohio (PUCO) upheld its decision to allow discriminatory pricing treatment of energy-intensive customers via the creation of a data center-specific tariff. The OMA Energy Group had opposed this tariff, arguing that it creates a precedent that could punish industrial and other high-energy users, such as manufacturers, in the future.

Of particular concern, the decision lacks evidentiary support, as the rationale for the tariff is based upon overstated speculative load forecasts by AEP.

The OMA Energy Group will be appealing this decision to the Ohio Supreme Court. 9/10/2025

Township trustees in Jerome Township, northwest of Columbus, recently voted unanimously to place a moratorium on the “receipt, processing, issuance or approval of any application for a zoning certificate” for data centers. The moratorium is believed to be one of the first in Ohio, according to the Columbus Dispatch.

Vilification of data centers is increasing. In the last month, the Public Utilities Commission of Ohio (PUCO) approved a utility proposal enabling discrimination against the cutting-edge businesses by imposing unreasonable additional charges and commitments on data center businesses.

The purported evidence of data center utility usage or constraints on the grid do not substantiate the enmity directed at data centers. Subject matter experts will dig into this topic at the upcoming Ohio Manufacturers’ Energy Conference. 9/10/2025

Energy giant American Electric Power (AEP) has signaled it may exit its downtown Columbus corporate headquarters. While AEP statements suggest the company could reinvest in the AEP tower or look elsewhere in central Ohio, sources say corporate leaders are shopping Ohio’s elected leaders for an “economic development” package.

AEP’s investor PowerPoint shows on slide 12 how regulated earnings from Ohio and their regulated transmission company are among the corporation’s best-performing assets. 9/3/2025