Subsidies for two coal-fired power plants that Ohio electric utility customers have been paying since even before the scandal-tainted House Bill 6 will soon be gone. Gov. Mike DeWine has signed legislation that eliminates those subsides and makes other changes in response to the state’s growing energy demands.
The bill stops subsidies for two Ohio Valley Electric Corporation plants—one of which is in Indiana—that were included in the nuclear power plant bailout. That law was passed in 2019 following a $60 million bribery scheme that ended with Republican speaker Larry Householder and former Ohio Republican Party chair Matt Borges in federal prison.
House Bill 15 passed the House and Senate overwhelmingly, with just a few representatives voting against the bill.
“If we leave this OVEC deal in place it's going to cost our taxpayers hundreds of millions of dollars for a bill that was bought and paid for in the largest scandal in Ohio's history," said Rep. Josh Williams (R-Sylvania Twp.) as he argued for the bill on the House floor in March.
The law, which takes effect in August, will also create an accelerated review process for energy generation projects in some areas of the state.
Senate President Rob McColley (R-Napoleon) told reporters after the bill passed his chamber in April that the first to be affected by the law will likely be data centers, which are known to consume vast amounts of energy.
"It's to Ohio's benefit to have data centers. And it's also to Ohio's benefit to make sure that they're not taking up more than their fair share of the precious resources we have on the grid," McColley said. “There have been data center operators who have already signaled to me and others that this is something that is going to trigger large investments for them in the state of Ohio, because they'll be able to do it kind of on their own terms without impacting some of the precious resources we have where reserved for the general population on the grid."
HB 15 also includes some consumer protections, such as:
- Requiring utility distributors to come before the Public Utilities Commission of Ohio (PUCO) and make their case for their rates every three years
- Establishing a shot clock, hastening turnaround time for regulatory decisions by the Ohio Power Siting Board
- Getting rid of riders—or fees utilities quietly tack onto consumer bills—without PUCO review and authorization
Among those praising the signing of the bill were the Ohio Manufacturers Association, the Sierra Club, the conservative Buckeye Institute and the CUB Ohio Advocacy Group, which lobbies for residential and small business utility customers.
