Senate Energy Committee advances Substitute Senate Bill 2 after debate over OVEC recovery, utility ownership and reliability

The Senate Energy Committee on Tuesday advanced Substitute Senate Bill 2 after a day of testimony that split utilities and business groups from environmental and reliability advocates over contract protections, rate-making procedures and how the state should handle cost recovery for legacy generation. Vice Chair Landis moved the bill be favorably reported to the committee on rules and reference; the motion passed on a roll call and the bill will be sent forward.

The bill, as explained when Senator Reineke moved to adopt substitute 0333-5, tightens language on three-year forecasted test years, clarifies tangible personal property tax provisions, assigns energy-efficiency school funds to the Facilities Construction Commission and limits continued utility ownership of behind‑the‑meter projects to facilities that are operational before the bill’s effective date. "That substitute bill ... is mostly clarifying language and tightens up wording regarding the 3 year forecasted test years," Reineke said during his explanation.

AEP Ohio, represented by Frank Stregari, opposed the bill’s current version on several grounds. Stregari said the statute cited in his testimony (identified in the hearing as "revised code 49 28.47") has been used to enter contracts with mercantile customers and…