RESOLUTION REGARDING ELECTRIC COMPETITION EXPECTATIONS
Passed December 13, 2005
WHEREAS, the Ohio steel industry is heavily energy dependent and is the largest industrial sector user of energy in the State of Ohio; and WHEREAS, when Senate Bill 3 was enacted there was a widely held belief that effective competition in wholesale and retail electric markets would develop after a reasonable transition period and provide ultimate customers in Ohio with lower prices and better service; and WHEREAS, after more than five years since the enactment of Senate Bill 3, effective competition in wholesale and retail markets has failed to develop and markets are instead dysfunctional requiring the extension of the transition period by establishing Rate Stabilization Plans (RSP) for Ohio's jurisdictional investor owned electric utilities that stabilizes generation prices; and WHEREAS, industries in states that have adopted electricity deregulation are facing a huge competitive disadvantage and are at risk of going out of business; and WHEREAS, Ohio's current RSPs impose caps on generation rates through December 31, 2008 and Ohio industries will be adversely affected if power markets continue to be dysfunctional at the end of 2008 when the RSPs expire. NOW, THEREFORE, BE IT RESOLVED that the Ohio Steel Industry Advisory Council after investigation and deliberation hereby requests that Ohio, through the coordinated efforts of its Governor, General Assembly, Department of Development, Office of Consumer Counsel and Public Utilities Commission a) Strongly advocate before Congress and the FERC to bring about revisions in the current failed academically designed “last-bid-in” marginal price for electricity wholesale markets; b) Take the necessary action to allow extension of the RSPs until such time that power markets cease to be dysfunctional, or c) Modify Senate Bill 3 to address the problems faced by Ohio industries as a result of the confluence of the expiration of the RSPs and the continued dysfunction of retail and wholesale power markets until such time that power markets cease to be dysfunctional.
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