Senate Energy Committee hears broad support for SB2 to end subsidies, tighten oversight; local tax impacts highlighted

The Ohio Senate Energy Committee held a second hearing on Senate Bill 2, an extensive rewrite of state energy rules that would end certain utility subsidies, phase out electric security plans and change permitting and tax rules to encourage new generation.

Proponents from industry groups, independent generators and energy trade associations told the committee SB2 would restore competitive market signals, attract private investment and reduce costs for large power users and small businesses. David Proanno of the Ohio Energy Leadership Council urged the committee to amend the bill so that OVEC coal-subsidy riders end upon enactment and argued the Public Utilities Commission of Ohio should be allowed to finish an audit of previously collected OVEC charges. "Ohio rate payers need relief now and thus OELC requests the amendment set forth in my written testimony," Proanno said.

Consumer advocates and public-interest groups said they supported many SB2 consumer protections — including ending some legacy subsidies and prohibiting utilities from owning generation — but urged safeguards. Maureen Willis, director of the Ohio Consumers'…