Proposed Ohio legislation would “create a competitive electricity market, bringing new power generation investment to Ohio to meet the growing demand” of the state’s electric grid.
Proponents said Senate Bill 2 would make energy more reliable and affordable throughout the Buckeye State and eliminate the energy sector’s “anti-competitive regulations.”
The legislation’s goal “is to ensure there is an abundance of reliable and affordable energy as Ohio continues to grow and be a hub for economic development,” Senate President Pro Tempore Bill Reineke said in prepared sponsor testimony. “The bill is designed to strategically, and clearly, prevent cost transference to the consumer, our constituents.”
The bill had its first hearing this week before the Senate Energy Committee. House Bill 15, a measure with similar goals of reliable and affordable energy has been introduced in the state House.
“This comprehensive bill is designed to create a competitive electricity market, bringing new power generation investment to Ohio to meet the growing demand on our electric grid,” Reineke said. “This legislation’s goal is to ensure there is an abundance of reliable and affordable energy as Ohio continues to grow and be a hub for economic development. The bill is designed to strategically, and clearly, prevent cost transference to the consumer, our constituents.
“The growing rate of demand on our grid compared to the rate of new generating resources is not adequate and it is vital new generation facilities are operating sooner than what occurs under current legislation,” Reineke added. “Ohio’s surge in investment projects and data centers are great for economic development, but reports from Ohio Utilities, PJM, and NERC all point to new demand of more than 5GW by 2030, leaving Ohio with an energy shortage.”
This bill continues the cleanup from the controversial House Bill 6 lawmakers passed and Republican Gov. Mike DeWine signed in 2019, which resulted in a prison sentence for former House Speaker Larry Householder, R-Glenford. According to Reineke, the measure repeals Ohio Valley Electric Corporation subsidies, which the lawmaker says have added $670 million to consumer bills.
It also bars future ratepayer subsidies for the power plants and repeals utility solar subsidies enacted by HB 6. According to Reineke, the subsidies have collected $60 million, but only $10 million has been spent statewide on five projects.
The proposal, as drafted, puts timelines on rate cases for Electric Distribution Utilities, the PUCO and the Ohio Power Siting Board.
“Senate Bill 2 is a competitive, comprehensive energy plan to bring more power generation to the State of Ohio through market driven solutions,” Reineke said. “Why can’t we make Ohio a net exporter rather than importer of energy? Let’s meet the demand and load growth of our energy grid, while keeping the consumer costs low and the lights on.”
Last year, lawmakers considered Ohio Senate Bill 275, which would have allowed utility customers to generate electricity at a separate location, including building new generators on brownfields. However, the Senate Energy and Public Utilities Committee did not advance the measure.
Americans for Prosperity-Ohio praised the new SB 2. Before the session, the group outlined six principles in its Good Energy Policy for Ohio report, which the group said would provide a roadmap for lawmakers “to pursue policies rooted in reliability, affordability, abundance, and transparency.”
“AFP-OH is grateful to Sen. Reineke for making energy a top priority in this year’s session so that Ohio can continue evolving into a Midwest energy powerhouse,” AFP-OH State Director Donovan O’Neil said in a statement.
“We’re thrilled that we now have legislative vehicles in both the House and the Senate whose core mission is to solidify free-market energy objectives at the heart of Ohio’s decades-long deregulation effort, and we are closer than ever to making the free-market energy system a reality,” O’Neil added. “...We are confident this marks the beginning of the end for cronyist energy policymaking and the dawn of a consumer-centered energy future for all Ohioans.”
