Senate committee adopts substitute for SB2 to promote competitive electricity market and limit utility-owned generation

The Senate Energy Committee on the motion of Senator Reineke adopted, by unanimous consent, a substitute to Senate Bill 2 that backers say would create a competitive intrastate electricity market, speed new generation, and limit ratepayer subsidization of existing plants.

Senator Reineke, sponsor of Senate Bill 2, told the committee the substitute "makes changes to create a comprehensive, competitive electricity market, enhance grid reliability as our load growth demand increases, and keeps energy affordable." He said the bill aims to bring new power-generation investment to Ohio to meet growing demand and avoid transferring costs to consumers.

The substitute would repeal the Electric Security Plan (ESP) framework for future cases and require standard service offers (SSOs) to be market-rate offers, prohibit future electric distribution utility ownership of generation that was paid for by distribution customers, and bar distribution…