Ohio Energy Leadership Council urges amendments to Senate Bill 2 on utility subsidies

In a pivotal meeting of the Ohio Senate Energy Committee on February 18, 2025, discussions centered around the implications of Senate Bill 2, which aims to reshape the state's energy landscape. The atmosphere was charged with urgency as representatives from the Ohio Energy Leadership Council (OELC) voiced their concerns about the current energy subsidy structures and the need for reform.

The OELC, a prominent trade association representing large commercial and industrial energy consumers, highlighted the significant financial burden placed on Ohio ratepayers due to ongoing subsidies for aging coal plants operated by the Ohio Valley Electric Corporation (OVEC). Since the inception of the OVEC rider, Ohioans have collectively paid over $600 million, a cost they argue is unjustified. The council is advocating for an immediate amendment to Senate Bill 2 to eliminate these subsidies, which they believe are detrimental to competitive energy markets.

The meeting underscored the council's commitment to ensuring fair and transparent energy rates, emphasizing that the elimination of OVEC subsidies should not be tied to the expiration of existing electric security plans (ESPs). The OELC argued that many of these plans are set to expire before the OVEC subsidies would be removed, leaving ratepayers in a precarious position.

In addition to addressing subsidies, the OELC expressed strong support for provisions in Senate Bill 2 that would prevent Ohio's utilities from owning generation assets. They contend that allowing utilities to maintain monopoly power over generation stifles competition and investment in new energy resources. By promoting a competitive market, the council believes Ohio can attract significant investments that will benefit both the economy and consumers.

The meeting also touched on the importance of maintaining interruptible load programs, which have proven essential during peak demand periods. These programs allow large energy users to reduce their consumption temporarily, helping to stabilize the grid during critical times. The OELC urged lawmakers to ensure that any changes to the energy framework do not jeopardize these vital resources.

As the committee deliberates on Senate Bill 2, the OELC's proposals for amendments reflect a broader desire for a more competitive and transparent energy market in Ohio. The outcome of these discussions could have lasting implications for the state's energy consumers and the overall economic landscape, as stakeholders await a resolution that balances the needs of businesses with the interests of ratepayers.