COLUMBUS, Ohio—You may want to move now to get that rebate on a smart thermostat or switch to an energy-saving washing machine. The future of Ohio’s electric utility energy-efficiency programs is up in the air after this December.
Last week, the Public Utilities Commission of Ohio ruled that the state’s energy-efficiency mandates for utilities will begin wrapping up on Sept. 30 and end completely on Dec. 31, as required under House Bill 6. That includes programs such as reduced-price LED bulbs, rebates on smart thermostats and energy-saving appliances, financial incentives to build energy-efficient homes and businesses, and free energy-efficiency and repair services for low-income households.
Ohio utilities have the option of asking the PUCO to voluntarily continue some or all of their energy-efficiency programs beyond 2020, but spokespeople for Ohio’s major utilities say their companies haven’t yet decided whether to seek such permission -- with the exception of FirstEnergy Corp.
FirstEnergy, whose subsidiaries provide power to Northeast Ohio and the Toledo area, will end two programs at the end of the year: one $75 rebate for smart thermostats, and another that pays money for recycling old appliances, according to company spokesman Mark Durbin. FirstEnergy customers can still get those rebates through Sept. 30, he said.
However, Durbin added, the Akron-based utility does intend to continue its Community Connections program, which offers low-income customers free home energy-use evaluations and potential improvements such as sealing attic or foundation leaks, more insulation, and replacement appliances.
Asked why FirstEnergy is ending the rebate programs but plans to continue Community Connections, Durbin stated in an email that it was a matter of money.
“A fundamental aspect of our business is that we need to be able to recover operating costs, along with costs of programs such as energy-efficiency programs,” Durbin stated. “If we are not able to recover the costs, then we need to reevaluate whether we offer those particular programs.”
Durbin added later: “Keep in mind that customers can take energy-efficiency steps on their own. While they might not get a rebate, they will benefit from using less electricity and having a lower monthly bill.”
AEP Ohio, which serves much of Central and Southeast Ohio, plans to seek permission to continue at least some of its energy-efficiency programs, spokesman Scott Blake stated in an email. “However, the make-up and scope of the new programs are still under review,” Blake said. “At this point, we can’t estimate the timing of when new programs will be approved and available to customers.”
Dayton Power and Light also hasn’t decided which, if any, of its programs will continue past 2020.
“We’re exploring what our options are and what we need to do moving forward with our programs,” said DP&L spokeswoman Mary Ann Kabel.
Duke Energy, the electricity provider for most of Southwest Ohio, currently offers a variety of energy-efficiency programs, including (among others) rebates for customers who install energy-saving devices, a monitor that offers bill credits to ratepayers who reduce energy usage during periods of high demand, and discounted or even free LED lights, which cost anywhere between $1 and $8 per bulb.
Duke spokesman Lee Freedman stated in an email that the company is still working to determine which of its programs are the most valuable and how they could continue in Ohio under the new state guidelines.
“Our energy- and money-saving programs are very popular among our customers,” Freedman stated. “And they have helped customers achieve savings across the board.”
As an example of the impact of Duke’s energy-efficiency program, a GE 10-watt LED bulb that costs $5.99 on Amazon and $5.49 at Lowe’s sells for $1.50 apiece on Duke’s website, according to Freedman. Another comparison he offered: A Philips three-way 18-watt LED bulb that sells for $14.01 on Amazon and $12.99 at Home Depot is offered by Duke for $6.98 per bulb.
The discounts aren’t just for online sales. LED and CFL light bulbs are often sold at lower prices at retail stores as a result of utilities’ energy-efficiency programs.
As of last year, Ohioans were charged on their electric bills a fee averaging of $3.36 per month to support energy-efficiency programs, as well as programs (such as Duke’s energy monitors) designed to reduce power usage during peak demand times, according to the Ohio Environmental Council Action Fund.
That fee, as well as a renewable-energy mandate fee, has been eliminated by House Bill 6 and replaced with a new 85-cent surcharge that goes to bail out two Northern Ohio nuclear power plants owned by FirstEnergy Solutions, which changed its name to Energy Harbor late last month.
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