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Ohio Energy Efficiency Portfolio Standard

Date Last Updated8/15/2014
Policy TypePortfolio Standard
State/FederalOH
Policy Administrator/Contact OfficePublic Utilities Commission of Ohio (PUCO)
Policy Initiation Date1/1/2009
Policy SummaryOhio's Energy Efficiency Portfolio Standard (EEPS) includes CHP and waste energy recovery (WER) as qualified efficiency measures. The original EEPS targets took effect in 2009, and was significantly amended in June 2014 by SB 310, freezing the energy savings requirements for 2 years, allowing large customers an option of opting out of the energy efficiency requirements, and expanding the types of activities eligible to be counted as energy savings. The original legislation set savings requirements that started in 2009 and increased 1% per year starting in 2014 and 2% per year in 2019 and forward, reaching a cumulative, annual energy savings in excess of 22% by the end of 2025. SB 310 freezes savings at 2014 levels (2.5%) through 2016 before continuing the 1% savings increase each year until 2021 when savings increase 2% annually, reaching the 22% annual energy savings by 2027. The percentage savings claimed by a utility from CHP and WER systems cannot exceed the percentage ratio of total industrial customer load relative to total load for that utility.

There is a separate target that began in 2009 which requires electric distribution utilities to implement peak demand reduction programs. SB 310 also froze these peak demand savings targets at 2014 levels (4.75%) in 2015 and 2016; the targets will begin increasing again in 2017 and will reach 7.75% in 2020. No peak demand targets must be met in 2021-on.

SB 310 will also place CHP under the scrutiny of an energy mandates committee, which will determine its ability to reduce grid congestion and any associated risks. Beginning in 2015, customers that purchase certain higher-than-standard voltage power and large commercial and industrial customers that annually purchase > 45 million kilowatts will be able to temporarily opt-out of energy efficiency and peak demand reduction programs. These same customers have the option to permanently opt out of these programs in 2017. If a customer opts out, then they are no longer eligible to benefit from energy efficiency and peak demand programs.
CHP Eligibility RequirementsAll types of CHP and waste heat-to-power qualify under the EEPS. Under the energy savings component of the EEPS, projects must have commenced operation or have been retrofitted on or after September 10, 2012 to qualify. Topping-cycle CHP systems at state institutions of higher education may qualify if they were placed into service between January 1, 2002 and December 31, 2004.
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required/
Other Performance Requirements
CHP is defined as the "co-production of electricity and useful thermal energy from the same fuel source designed to achieve thermal-efficiency levels of at least 60% with at least 20% of the system's total useful energy in the form of thermal energy."
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