Senate Energy Committee adopts substitute to SB 2 after testimony on rates, behind‑the‑meter generation and grid reliability

The Ohio Senate Energy Committee adopted a substitute to Senate Bill 2 (substitute bill 0333-3) as its working document and heard more than a half dozen witnesses arguing over changes to utility regulation, rate-making and generation policy.

The substitute bill was moved by Senator Jay Reineke and adopted without objection after committee discussion; Chair Chavez said the new version would be posted on the committee and senate websites after the hearing. The adoption makes the new text the working draft for further hearings and amendments.

Why it matters: The bill would change how utilities and the Public Utilities Commission of Ohio (PUCO) handle refunds, rate cases, and what kinds of generation and storage the state treats as eligible energy resources. Proponents said the changes would spur investment and grid reliability; opponents warned they would weaken consumer protections, allow regulated utilities to compete with independent providers, and create rate volatility for residential and business customers.

Key provisions described in committee testimony and the substitute text include: refunds tied to the date the Ohio Supreme Court finds rates unlawful rather than to the original rate case approval; restoration of audit-process language for PUCO reviews; a rule that interruptible rates not be discriminatory; an interim “midpoint” staff-recommended rate that utilities may charge subject to refund; clarified deadlines (45 days for an application to be deemed complete, and up to 180 days for PUCO staff to issue a staff report after completeness); permission for certain behind‑the‑meter generation where no ratepayer dollars are used and the facility is directly connected to the customer; a three‑year multiyear rate-making option…