Staff Writer
The Ohio House of Representatives has passed House Bill 15, a wide-reaching energy bill designed to modernize the state’s electricity market, attract new investment, and lower costs for ratepayers. Backed by House Speaker Matt Huffman (R-Lima) and Representative Roy Klopfenstein (R-Haviland), the bill aligns with Ohio’s position as a growing hub for advanced manufacturing and data infrastructure, with recent investments from Intel, Honda, and Anduril.
“This legislation clearly signals that Ohio is open for business and committed to developing new baseload generation,” said Klopfenstein.
House Bill 15 aims to tackle rising demand forecasts and grid reliability warnings issued by PJM Interconnection, which has cited risks of energy shortfalls by 2026.
What’s in the Bill
Utility Reform & Ratepayer Protections
- Ends the use of Electric Security Plans (ESPs), requiring utilities to file formal rate cases through the Public Utilities Commission of Ohio (PUCO).
- Mandates Market Rate Offers (MROs) for Standard Service Offers, improving price transparency for consumers.
- Establishes Multi-Year Rate Plans (MYRPs) with annual true-ups to better reflect actual costs.
- Prohibits utilities from bidding in wholesale markets with assets paid for by ratepayers.
- Ends new collections for the Solar Generation Fund; leftover funds will be refunded to customers.
Grid Modernization & Infrastructure Incentives
- Opens intrastate transmission access to foster competition and new development.
- Cuts Tangible Personal Property (TPP) tax from 25% to 7% on new energy generation starting in 2027.
- Reduces TPP tax from 88% to 25% on new transmission and pipeline infrastructure.
- Allows communities to apply for “priority investment area” status, exempting them from TPP tax for five years.
- Launches the Community Energy Pilot Program to repurpose brownfields for distributed energy projects.
Regulatory Efficiency & Market Competition
- Bars Electric Distribution Utilities (EDUs) from owning generation assets, promoting a competitive marketplace.
- Requires utilities to publish capacity heat maps and participate in annual PUCO stakeholder meetings.
- Implements regulatory "shot clocks" to reduce project delays at PUCO and the Ohio Power Siting Board.
Opposition Emerges from Utilities and Environmental Groups
Despite bipartisan support in the House—where the bill passed 90-3—House Bill 15 has faced criticism from both utility companies and environmental advocates:
- Utility Pushback: AEP, AES, and Duke Energy oppose the bill’s provision to phase out subsidies for the Ohio Valley Electric Corporation (OVEC) coal plants. These subsidies have cost Ohioans nearly $680 million and could reach $1 billion by 2030. Utilities argue the plants are essential during extreme weather events and express concern over the removal of Electric Security Plans, citing potential regulatory lag that could stall infrastructure investments.
- Environmental Concerns: Advocacy groups warn the bill’s expedited approval timelines—some as short as 45 days—limit public input and environmental oversight. There is also growing concern that the policy may encourage fracking in state parks and public lands to support future gas-fired generation.
“The good, the bad, and the ugly are all present in this legislation,” said critics in a recent Ohio Capital Journal analysis, reflecting the complex balance between energy expansion and environmental safeguards.
What’s Next
House Bill 15 now heads to the Ohio Senate, where the competing interests of economic development, utility reform, and environmental impact are expected to drive further debate. For business leaders and energy developers, the legislation offers clearer market signals and new opportunities. But as Ohio reshapes its energy future, stakeholder input will remain critical to ensure the path forward is both equitable and resilient.
