Competitive electricity generation has served manufacturers well since first approved in Ohio in 1999. However, investor-owned utilities, including AEP, want to turn back the clock and change Ohio law to force customers to once again pay them to produce power with forced subsidies. The utilities want this even though Ohio is well-served by competitive generators—companies who take the risk to generate power and sell it in a competitive market, without taxpayer subsidies.

Fortunately, the General Assembly’s new leaders are saying, “No,” to the utilities’ inappropriate influence and desire for more taxpayer subsidies and instead standing up for ratepayers and manufacturers by protecting Ohio’s free market in electric generation. 

NEW LEGISLATION PROTECTS MANUFACTURERS AND FREE MARKETS

House Bill 15 and Senate Bill 2 have been introduced in the Ohio House and Senate and, instead of responding to the utilities’ request for new subsidies, they:

• Repeal ESPs: Using electric security plans, utilities over the past decade have derived billions of dollars from customers in the form of above-market-rate fees known as “riders,” that have been placed on customers’ power bills.
• End Coal Power Plant Subsidies: Repeal continued customer-paid subsidies for a pair of very old and inefficient coal power plants, including one power plant in Indiana. These two power plants are known as the Ohio Valley Electric Corporation (OVEC). The OVEC subsidy was forced on customers by the corrupt House Bill 6 scheme unearthed by federal investigators in 2020. 
• Support New Generation: Create new ways for Ohio to attract new power generation and energy-using industries and to allow energy users to build their own power plants. Electric grid heat maps will show where our grid is constrained – attracting new generation – while attracting new businesses and electric load to uncongested areas, thus lowering rates for existing businesses. Ohio already has an abundance of energy resources. Competitive market investment can unlock those resources for the economic betterment of all Ohioans.

REVISIONS ONGOING

As with any complicated piece of legislation, refinement is frequently needed to keep things moving in the right direction and prevent unwelcome, last-minute amendments from eroding the original, positive intent. OMA members and our energy experts have been working with lawmakers to do just that. Ohio House Speaker Matt Huffman and Ohio Senate President Rob McColley have been working closely with the OMA and other key stakeholders and deserve Ohio’s thanks for steering our state’s energy policies out of the longtime grip of utilities and back toward the needs of our economy, manufacturers and consumers. They continue to work with us, ask good questions, and listen when we raise concerns or offer suggestions.  

STATUS

Thoughtful and supportive testimony has been delivered by the OMA and numerous organizations, including many customer groups who support the intent of the bill. In contrast, utility lobbyists have also appeared to oppose the bills. Why do monopoly utility companies oppose the bill? Because any reforms to Ohio’s electricity ratemaking system could deny them continued unearned profits on the backs of captive Ohio customers…without any offsetting benefit.  Learn more about that from OMA member Tim Ling of Plaskolite. 

TAKE ACTION NOW!

Manufacturers are among the most important businesses to our state’s economy, and when engaged, we can help guide public policy in the right direction. The staff at the OMA are advocating on your behalf, but staff cannot convey your interests as well as you. You can shape the outcome of this public policy debate by adding your voice.

State lawmakers are quickly moving forward on House Bill 15 and Senate Bill 2 and they need to hear from you to help keep these bills moving and free from utility-supported changes that would erode their benefit to Ohio’s economy. 

Please take action now by calling your state lawmakers to amplify the manufacturing industry's position.

Ideally, you have a relationship with your state legislators and can call or text them on their mobile numbers. Mobile phones are by far the most effective form of communication on time-sensitive legislative matters such as this. If you do not have their mobile phone number, use these contact finders: (Ohio Senate/Ohio House) to send an email or call their Statehouse office.

Manufacturers are among the most important businesses in the state and can make a difference when they choose to engage. You have the opportunity to shape the outcome of this public policy debate by adding your voice. Take action by calling your state lawmakers and urging support for these repeals and further changes.

Questions? Please contact Lindsey Short with OMA's Public Policy Services.