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Senate passes broad energy overhaul aimed at boosting generation investment and consumer oversight
Summary
The Ohio Senate on a unanimous vote approved Substitute House Bill 15, a package of energy reforms that seeks to ease generation investment, change taxation on new generation, and increase oversight of utility rate-setting while preserving consumer protections.
The Ohio Senate passed Substitute House Bill 15 on a unanimous 33-0 roll call after floor debate that highlighted the bill’s aims to encourage power generation investment while improving consumer oversight.
Supporters said the bill reduces barriers to new power generation, creates more predictability for utility projects and rate-making, and replaces some emergency rider mechanisms with full rate cases and multi-year forecasting. “Perfect is the enemy of good,” Senator Chavez said on the floor, urging colleagues to approve a compromise product that she described as “pretty good.”
The bill combines elements of two earlier measures and, according to supporters, eliminates certain riders while increasing transparency in how public utilities propose and set rates. Senator Chavez told the chamber the legislation requires a three-year forecast with a true-up to actuals in lieu of some existing riders, and creates a 7% tangible personal property tax on new generation assets rather than the complete elimination that had been proposed in an earlier Senate bill.
Senator Smith, also speaking in favor, emphasized bipartisan work on the issue and said the bill contains provisions intended to return money to consumers and address problems tied to prior energy legislation. Smith urged the chamber to view the measure as a step toward broader energy policy work, including possible future pilot programs for community solar and demand response.
The Senate voted 33 yeas and 0 nays to pass the bill. The chamber then agreed to the bill title.
Background and context: supporters described House Bill 15 as the final merged version of related energy legislation that passed both chambers with significant bipartisan support in committee and on the floor of the House. Supporters said the bill aims to make Ohio more competitive for industry investment while ensuring safeguards for reliability and consumer protections. The sponsor and committee leaders thanked Legislative Service Commission staff and committee members for drafting and negotiating the measure.
What the bill does (as described on the floor): reduces barriers to entry for power generation; requires greater visibility into public-utility rate-making by replacing certain riders with full rate cases that include a three-year forecast and true-up; applies a 7% tangible personal property tax on new generation assets (a two-thirds reduction relative to prior infrastructure tax treatment, as supporters described); and removes or repeals parts of earlier energy-related measures referenced on the floor.
Next steps: the bill passed the Senate and will proceed according to the legislative process toward enrollment and transmittal to the governor.
Votes at a glance: Substitute House Bill 15 — Passed, 33-0.
