Ohio state Sen. Bill Reineke, R-Tiffin, addressing the Senate. (Photo by Nick Evans, Ohio Capital Journal.)
This story will be updated.
The Ohio Senate unanimously approved a measure Wednesday overhauling much of the state’s energy sector. The chief goal of the proposal is to encourage investment in new, primarily gas-fired, power plants as the state’s energy demands skyrocket. But as part of the bill, lawmakers made broad changes to the way to utilities bill customers.
Utility regulators would be subject to a “shot clock” meant to speed rate cases through the process and utilities themselves won’t be able to rely on the energy bill surcharges that have helped bolster their balance sheets.
But perhaps most notable, the bill eliminates the legacy generation rider — a surcharge devised to prop up two aging coal plants that are part of the Ohio Valley Electric Corporation. That controversial rider was part of 2019’s Ohio House Bill 6 which was at the heart of a massive bribery scheme that landed former House Speaker Larry Householder in federal prison with a 20-year sentence.
So far, the legacy generation rider has cost ratepayers about half a billion dollars.
The high points
Senate Bill 2 draws a bright line between the companies building new power generation facilities and the ones more familiar names that show up on your monthly bill. Those energy giants control power distribution, and since 1999, they’ve largely been cut out of the generation business.
“We’re making it clear that generation is separate from transmission,” the bill’s sponsor state Sen. Bill Reineke, R-Tiffin, told lawmakers Wednesday.
In addition to keeping energy giants out of the marketplace, Reineke’s bill offers tax incentives for newcomers.
“There will be no (tangible personal property) tax on new generation projects,” he explained, “and a reduction from 88% to 25% on new transmission, distribution, and pipeline infrastructure.”
In addition, Reineke bragged about cutting the turnaround time on regulatory decisions.
“We are changing that from 540 days on average to 365 days, and some siting cases will drop to 120,” Reineke said. “It is not acceptable to be behind California and New York, so we will improve our turnaround time.”
Follow Ohio Capital Journal Reporter Nick Evans on X or on Bluesky.
YOU MAKE OUR WORK POSSIBLE.