Three Thoughts: Energy Cost Surge Invites Energy Sector Accountability

 

The Ohio Manufacturers' Association 2026 Energy Conference saw record attendance and earned headlines for tackling tough energy issues and preparing industry leaders to understand the coming trends.  Canary Media reported on forecasts driving up Ohio power bills, and The Columbus Dispatch reported on the PORTS-Pike project slated to be built in Southern Ohio. 

One theme ran throughout the day: accountability.  

Accountability is done for someone, not to someone.  That’s a phrase I’ve always used.  It applies to big organizations too, not just people.  

Accountability is a good thing. 

Energy costs are being watched by many people these days, especially by manufacturers.  

I had three top takeaways beyond the headlines.  

First Thought: Keep an eye on electricity forecasts

Keynote speaker Dr. Jon Koomey of Koomey Analytics said people historically have tended to overstate the impact of new technology and cautioned that growth in data computing use doesn't necessarily imply electricity demand growth.  Electricity load forecasts have caused an inflated sense of future power demands and have tended to impact current prices. Though data centers have been seemingly made to blame, the real issue may be unaccountable projections. 

Panelist Kim Bojko indicated the widely-reported 30,000 MW projection from AEP for Central Ohio has now been modified down to 5,700 MW.  The over 80% drop has garnered little attention. 

We all need to keep an eye on these numbers and challenge assumptions. Brad Belden of manufacturer Belden Brick said, "Customers writing the checks better be there (at the discussion table) too." 

Another Thought: Need to return policy focus to electricity customers

Ohio loses if we lose focus on the manufacturing base of our economy. Industry needs affordable energy to create jobs. Ohio Manufacturers’ Association’s Lindsay Short said, "Reliable and affordable energy is a long strength in Ohio." 

The conference included a panel that proves Ohioans are at the forefront of this vital, national issue.  Two Ohio members of Congress, both House Energy and Commerce Committee members, spoke to the gathering.  

Congressman Bob Latta who chairs the Subcommittee on Energy said about electricity pricing to the room full of manufacturers, "If [electricity is] not affordable, you can't compete."  

Congressman Troy Balderson who chairs the House Energy Action Team added, "We need to lower costs for manufacturers who are providing jobs." 

It’s clear that a focus on electric customers is crucial. 

Third Thought: What does the future hold?

Dr. Koomey said, "No one knows what A.I. electricity needs will truly be. Efficiency and shift in demand are coming." 

Koomey wasn’t the only one looking into his crystal ball at the future of energy issues. 

A panel talked about microgrids.  Microgrid is a new phrase entering the energy sector. It's a phrase used as a counterpart to "behind the meter" and speaks to power generation for a single user. However, it's really an old phrase that means a community providing electricity from a single power source to multiple users. Could microgrids of our past be in our future?  Time will tell. 

The bottom line is this.  Whatever the future may hold, keeping a critical eye on electricity forecasts and focusing policies on electricity customers is the key to accountability for the energy sector.

----------------------------------------------

This column is a regular column in The Columbus Dispatch.

 

Three Thoughts: It’s OK. One Can Like AI, Dislike Data Centers

 

My great great grandfather was a typesetter. 
What's that?  Ask AI.

You don’t have to like data centers to like AI.  

I can reconcile the fact that I carry a phone loaded with AI-equipped capabilities and am a user of ChatGPT, X, and Facebook, yet I am no fan of the proliferation of data centers. 

It’s a false choice. 

I contend I can like AI and be hopeful for its future even if I wish data centers created more jobs. 

First Thought: Rooting for AI

I can put thumbs up on my kids’ sporting events and hearts to my granddaughter’s photos even if I would rather see industrial sites kept ready for manufacturers instead of data centers. 

I won’t shed tears if my mom’s social media likes from 2013 are lost in a power outage instead of her air conditioning going out and the food in her fridge spoiling in a rolling blackout. 

Google, NVIDIA, and Microsoft are all speaking to more efficient data centers in the future.  Data centers could use a smaller footprint for the same output.  Intel’s Gordon Moore and Moore’s Law concept is another predictor to watch. Jensen Huang, CEO of NVIDIA said, “The first thing we’re doing is modernizing data centers, accelerating it, densifying it, making it more energy efficient.” 

Yes, AI is growing computing demand, but more efficient data storage means computing supply is growing rapidly too.  Both are happening. 

Another Thought: Don’t blame AI

AI shouldn’t be held up as a shield against data center backlash.  

Don’t tell me I have to like data centers’ location choices simply because I’m upbeat about the future of AI. 

It’s a local decision to accept data centers.  A local community can embrace AI and still, rightly, question the best use of land and resources to best achieve local impact. 

Even with the massive growth, data centers directly account for about 0.5% of Ohio’s Gross Domestic Product compared to 15% for manufacturing.  Ohio needs to accommodate data centers without allowing them to crowd out the manufacturing sector that has long been one of the state’s greatest strengths. 

Third Thought: AI and jobs

Don’t fear AI taking away jobs.  That’s another false choice. 

Fear of losing jobs to technology and mechanization is not a new idea.  

I do family history research, and it shows typesetter, copy editor, drayman, and harness maker in the mix among my ancestors’ jobs.  You must search hard to even know what those jobs involve.  

Jobs evolve.  New jobs emerge. 

Businesses are benefiting from AI embedded in everyday work. It’s a much-needed edge.  Just like knowing how to use spreadsheet software in 1990 or 3D printing in 2010, jobs of the future will require knowledge of how to use AI. 

Economist Lauren Saidel-Baker said it right way back in 2018, "The number of new jobs created by artificial intelligence may actually exceed the number of jobs eliminated." 

Count me among the growing number of people who are pro-AI and rooting for its future benefits for Ohio business and workforce.  Supporting AI, though, doesn’t mean supporting every data center, in every location, with every incentive.

--------------------------------------------------

This column is a regular column in The Columbus Dispatch. 

Three Thoughts: Labor Day Advice for the Next Governor

 

Labor Day is upon us. 

Ohioan Jacob Coxey from my hometown Massillon led a march on Washington for economic policy in 1894.  Labor Day became a thing that same year as Congress’ answer to the populist demands of the time. 

Not long after, the labor holiday also became the traditional start of political campaigns.  Voter interest picks up in the sprint to November.  

Economic policy and political campaigning are intertwined with Labor Day.  Ohioans still tend to tune in to elections more after Labor Day to ponder how they are going to vote.  It’s also when candidates are starting to think more seriously about what happens after Election Day. 

With that backdrop, I have three thoughts for Ohio’s next governor about what governing looks like after the results have set in.  There are lessons to be gleaned from past governors. 

First Thought: Jobs. Jobs. Jobs.

Ohio Governor Jim Rhodes turned a catch phrase into a governing roadmap.  His “jobs, jobs and jobs” theme is still spot on today.  

His closest gubernatorial race in 1974 was a referendum on manufacturing jobs versus a service sector shift.  The lesson then is the lesson today: Focusing on manufacturing jobs is job one, two, and three for an Ohio governor. 

Keep a focus on Ohio’s economic base.  Bad economic times come inevitably, and the most resilient state economy is one where the base stays diverse and strong.  History shows an economic downtown is worse in places where the base is weakened and overdependent on a few sectors. 

Every cabinet agency should answer the question:  How does this policy affect manufacturing?  Manufacturing is the foundation of our Ohio economy.  

Another Thought: All development is local

Tip O’Neill’s saying, “All politics is local” also applies to development.  

Ohio Governor George Voinovich, himself a local official at heart, coached local officials he met to think about their community needs saying, “If you know what you want, you can get it.”  Local consensus building was central to the Voinovich development approach. 

That translates to:  Empower local communities. 

For example, no development happens without a site or building.  At the core of local economic growth is site readiness—a locally driven endeavor.  State government can only empower local readiness, not replace it. 

Third Thought: Business climate matters

It was a governor, then Texas Governor George W. Bush, who gave the best definition of economic development I’ve heard saying, “Economic development is creating an environment where people are willing to risk capital.” 

Some things only a Governor can do.  Governor Mike DeWine famously met with corporate decision makers over Fran’s breakfast.  That sincere, personal touch—something only a governor can deliver—is how even multibillion-dollar, job-creating investments get closed. 

There’s more to this business climate factor, as the recent CNBC rankings demonstrate.  

Infrastructure and workforce are woven into business climate and that’s where a governor is both a general and a front-line soldier.  

Grassroots political campaigning causes gubernatorial candidates to see more from the front lines of the economy and development than any state aides will ever see.  You can’t visit dozens of county fairs, festivals, and parades and not absorb an understanding of the wants and needs of Ohioans.  Trust what you learn. 

Labor Day is when governing questions come into focus for Ohioans and for future governors alike.  Manufacturing jobs focus, local economic resilience, and business climate should be at the forefront.

Feb. 22, 1894; Newark Advocate, page 2

---------------------------------------------------------

This column is a regular column in The Columbus Dispatch.