Ohio Electric Deregulation

Cinergy Corporation owns Cincinnati Gas & Electric (Ohio) that
operates in a restructured jurisdiction, and Public Service of Indiana and Union Light Heat & Power (Kentucky) both operate in regulated, cost-of-service jurisdictions. Costs have increased much more sharply in Ohio (restructured) than they have in Indiana or Kentucky (regulated). In 2000, industrial consumers with an 85% load factor in Indiana, Kentucky and Ohio would have paid $31/MWh, $33/MWh and $34/MWh
respectively. In 2006, the same industrial consumers would be paying $38 per MWh in Indiana, and $42/MWh in Kentucky but $79/MWh in Ohio. All three Cinergy Comparison of APS in WV vs MD companies have similar generation profiles and other cost concerns, yet Ohio consumers pay almost double what the Indiana or Kentucky consumer pays.
C. The Necessary and Essential Pre-Conditions For Real Competition
Last December ELCON issued a white paper that reaffirmed its desire for real competition, but also stated in no uncertain terms that real competition simply has not happened and is not going to happen unless at least seven necessary and essential preconditions are actually implemented in a closely integrated fashion. As mentioned above in section A, ELCON members that have facilities in the present-day ERCOT
market report a high degree of satisfaction with the performance of that market as it is currently structured—meaning their expectations were largely met—because sufficient pre-conditions and an appropriate market design were in place when the market was launched. What were industrial consumers’ expectations with respect to each of these pre-conditions in the context of the FERC-approved organized markets?