The legislature sent Gov. Mike DeWine an extensive bill Wednesday that lawmakers and lobbyists have said will prompt new energy generation and otherwise overhaul the system as power-hungry consumers, like data centers, put increasing pressure on the grid statewide.
As Ohio stares down eventual electric shortages from growing demand, House Bill 15 could take effect as soon as three months from now, if DeWine signs it. Leaders have said it could take years for increased activity on plants’ parts.
HB 15 was amended over and over before becoming its current, final version. The bill, which got near-unanimous backing in both the House and Senate, addresses a range of related issues—including energy costs for consumers, reliability, and barriers to entering the market for utilities.
“The well-used adage applies in this case: perfect is the enemy of good,” Sen. Brian Chavez (R-Marietta) said Wednesday. “We know that this bill is not perfect, but we feel that it is pretty good.”
It eliminates direct subsidies for generators, including controversial ones to two Ohio Valley Electric Cooperative coal-fired power plants, and some for solar farms.
Those coal bailouts were enacted under House Bill 6 in 2019, the legislative portion of a nuclear power bailout scandal that led to numerous federal convictions and indictments, including landing Republican former House Speaker Larry Householder and former Ohio Republican Party Chair Matt Borges in federal prison.
“House Bill 15 contains huge wins for consumers that have been scarred by the House Bill 6 scandal,” Sen. Kent Smith (D-Euclid) said Wednesday.
The bill makes dozens of other changes to electric law, including by:
- Requiring utility distributors to come before the Public Utilities Commission of Ohio (PUCO) and make their case for their rates every three years
- Establishing a shot clock, hastening turnaround time for regulatory decisions by the Ohio Power Siting Board
- Getting rid of riders—or fees utilities quietly tack onto consumer bills—without PUCO review and authorization
- And allowing for behind the meter generation, like on-site energy creation for data centers, among numerous other measures
The Senate sent its own version of code changes to the House last month, SB 2, but advanced HB 15 after negotiations between the two chambers, Senate President Rob McColley (R-Napoleon) said.
“There are some subtle differences between the two,” McColley said Wednesday.
Major utility providers, including FirstEnergy and American Electric Power (AEP) of Ohio, were the biggest opponents, though some environmental advocates testified against it. Its proponents cover a swath of interests, from other environmental advocates to the Ohio Consumers Counsel to the Ohio Manufacturers’ Association.
Senior Counsel Maureen Willis told lawmakers Tuesday she was still concerned about language that limits consumer refunds in the final version. “The bill’s current refund provisions leave consumers with less, not more protection, than exists today,” Willis said.
DeWine has 14 days to sign or veto HB 15 once he receives it.
