The Ohio Senate has signed off on a measure that proponents say would create a more energy-efficient Ohio and eliminate the energy sector’s “anti-competitive regulations.”
Proponents said Senate Bill 2 would foster transparency and competition, increasing energy affordability throughout the Buckeye State. The state Senate unanimously approved the measure, which now heads to the Ohio House for consideration.
“This is a major step forward in meeting Ohio’s ever changing power needs,” Senate President Rob McColley, R-Napoleon, said in a release. “We wanted to do more than just enough to keep the lights on, my colleagues and I prioritized a policy that makes Ohio a net exporter of power.”
The measure is the latest in the ongoing cleanup following the controversial House Bill 6, which Republican Gov. Mike DeWine signed in 2019. House Bill 6 led to a federal prison sentence for former Ohio House Speaker Larry Householder, R-Glenford, as part of what is commonly called the “largest bribery scheme in Ohio history.”
Senate Bill 2 repeals Ohio Valley Electric Corporation subsidies, which lawmakers said have added $670 million to consumer bills since 2017. It also bars future ratepayer subsidies for the power plants and repeals utility solar subsidies enacted by HB 6.
The legislation also repeals Electric Security Plans (ESPs), known as “riders,” in favor of a traditional rate case format. Critics said ESPs have been used to charge consumers more without making the case for why an energy company needs more money.
Under the revised approach, an energy company must fully disclose its financials to the Public Utility Commission before a rate increase is approved.
The legislation also creates Priority Investment Areas (PIAs) for new power generation projects. Lawmakers said this could help repurpose brownfields and decommissioned coal power plants for new generation projects.
The proposal, as drafted, puts timelines on rate cases for Electric Distribution Utilities, the PUCO and the Ohio Power Siting Board.
“Ohio is well positioned to contribute baseload power in part due to significant access to clean natural gas as a reliable and affordable fuel source,” Senate Energy Chairman Brian Chavez, R-Marietta, said in a release. “Senate Bill 2 incentivizes new baseload generation projects by reducing the tangible personal property tax (TPP) on electricity generation project and the infrastructure associated with those projects.”
Energy has been a hot-button topic in the Buckeye State, partly because of the controversy surrounding HB 6. However, it is also in focus because of the number of developments in the state, such as the proposed Columbus-area Intel chip factory.
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.
Before the session, Americans for Prosperity-Ohio offered six principles in its Better Energy Policy for Ohio report. At the time, the group said the proposal would provide a roadmap for lawmakers “to pursue policies rooted in reliability, affordability, abundance, and transparency.”
“We applaud [the] passage of Senate Bill 2 and House Bill 28; both are major victories for Ohio’s energy consumers and taxpayers,” AFP-OH State Director Donovan O’Neil said in a statement. “By eliminating costly subsidies like those for the Ohio Valley Electric Corporation and promoting market competition through transparent pricing and procurement, lawmakers are putting Ohioans first.
“S.B. 2 checks the boxes on multiple key principles outlined in our Better Energy Policy for Ohio Study, including affordability, transparency, and market-driven solutions,” O’Neil added. “Senate Bill 2 ends government distortions, empowers self-generation, and ensures that energy decisions are made for the benefit of ratepayers—not special interests.”
O’Neil called on the Ohio House to advance the measure without delay.
