The Ohio House of Representatives has passed a measure that proponents say will increase energy reliability and affordability across the state and eliminate the energy sector’s anti-competitive regulations if signed into law.
House Bill 15 aims to increase Ohio’s power generation while improving affordability and reliability. Energy production is a hot-button issue in Ohio following several major economic developments, including Anduril Industries, Honda and Intel projects.
“If we’re going to continue to support major economic development projects here in Ohio, then we’re going to need the energy to power them,” Rep. Matt Huffman, R-Lima, said in a release. “House Bill 15 is a bold, comprehensive strategy that will prepare our state for future economic growth and promote energy reliability, while improving affordability for ratepayers.”
The state House’s passage of the bill follows Ohio Senate approval of a second measure, Senate Bill 2. The House and Senate are expected to work through reconciliation of the two similar measures bills before sending a version to Republican Gov. Mike DeWine for his consideration.
“With legislative wins in both the House and the Senate, we are about to make Ohio’s free-market energy system a reality,” Americans for Prosperity-OH State Director Donovan O’Neil said in a statement. “This is a major win for the Buckeye State to lower costs for all energy users....
“Now more than ever, it’s true that this marks the beginning of the end for cronyist energy policymaking and starts the dawn of a consumer-centered energy future for all Ohioans,” O’Neil added.
The measure eliminates the option for utility companies to file an Electric Security Plan (ESP). Instead, the legislation requires them to go to the Public Utilities Commission of Ohio (PUCO) for a rate case.
It also mandates utility companies undergo a more comprehensive review to determine consumer rates. The legislation also allows intrastate transmission, which proponents said could lead to more providers entering the market, increasing competition and expansion.
Another provision lowers the Tangible Personal Property tax on new generation and energy conversion equipment from 25% to 7% starting in tax year 2027. Further, the house bill reduces the TTP tax on new transmission, distribution, and pipeline infrastructure from 88% to 25% in tax year 2027, aligning the Buckeye State with surrounding states and incentivizing new energy generation.
“Ohio takes pride in being ranked number one in the nation for infrastructure and economic development, but we’ve received concerning warnings from PJM about an impending energy shortage as early as 2026,” state Rep. Roy Klopfenstein, R-Haviland, said in a statement. “While other states are moving to shut down power generation and limit new construction, this legislation clearly signals that Ohio is open for business and committed to developing new baseload generation, which will benefit both ratepayers and businesses of all sizes across the state.”
This bill continues the cleanup from the controversial House Bill 6, which led to what’s commonly called the “largest bribery scheme in Ohio history.” DeWine signed the measure in 2019.
HB 6 was pitched as a ratepayer-funded bailout of two nuclear power plants after Akron-based FirstEnergy Solutions filed for bankruptcy in March 2018 and announced plans to close Davis-Besse Nuclear Power Station in Oak Harbor near Toledo and Perry Nuclear Power Plant in Perry.
Federal prosecutors eventually charged former Ohio House Speaker Larry Householder, R-Glenford, and others. The feds said the former House speaker and his enterprise conspired to violate racketeering laws and received millions of dollars in bribes.
Householder remains in federal prison.
“I have spent my entire time in this building, for the last almost [five] years, working in the shadow of House Bill 6,” News Channel 5 in Cleveland quoted House Finance Chair Brian Stewart, R-Ashville, as saying. “…House Bill 6 was a tax then. It's a tax now and we can finally put this entire ridiculous episode behind us by voting yes today on House Bill 15.”
