Ohio governor backs natural gas and deregulated power markets
Governor John Kasich has officially opened the Oregon Clean Energy Centre in northwestern Ohio. One of first, biggest and most efficient facilities in the state, the $800m natural gas-powered plant was developed over four years to counter cheaper shale gas being manufactured in the Appalachian Basin. It will have capacity to provide electricity for over 700,000 homes. While nuclear plant operators are seeking state subsidies to keep facilities running as electricity costs fall and natural gas becomes more ubiquitous, Kasich voiced support for deregulated power markets and tipped gas-fired power to be “the future”.

Ohio Gov. John Kasich joined elected officials in northwestern Ohio on Monday to cut the ribbon for one of the state’s largest and most efficient natural gas-fired power plants, announcing his support for the deregulated power market as other generators push for subsidies.

The Oregon Clean Energy Center is one of the region’s first facilities developed in response to low-cost shale gas supplies produced in the Appalachian Basin, where dozens of other facilities are planned or under construction.

Nuclear generators want subsidies from the state to keep their plants online as electricity costs have fallen. Kasich took the ceremony as an opportunity to throw his support behind the natural gas industry, which is lobbying hard to prevent subsidies for nuclear generation.

Kasich announced his support for competitive power markets, and said gas-fired power “is the future. I think it’s important that Ohio stay in a deregulated environment, which brings in investors.”

The 870 MW Oregon Clean Energy Center entered service last month and is now fully operational. Developed by Boston-based Clean Energy Future LLC, the facility is owned by Ares Management LP affiliates and I Squared Capital. Planned upgrades at the plant in Lucas County would increase its output to 908 MW.

Clean Energy filed an application with the state in January 2013, and Monday’s ceremony concluded the four-year process, which employed 950 people at the peak of construction. The $800 million plant can provide electricity for more than 700,000 homes.

Clean Energy operates or is developing more than 3,000 MW of additional gas-fired power in the state.