New Law to Fix Ohio Energy Market?
Ohio homes pay high electricity rates because of problems in the Ohio energy market. That means more money down the drain to keep comfy in the winter and summer months. That’s why lawmakers have introduced a bill to overhaul the Ohio energy market. But what does this bill do and can it address Ohio’s energy problems? Or does Ohio HB15 need work to fix the energy market?
What Is in HB15?
House Bill 15 (HB15) intends to fix problems in the Ohio energy market. The bill seeks to encourage new plants in the state. This way Ohio can produce the power it needs without having to rely on outside sources.
OCC testimony summarizes several other benefits of HB15.
- Reduce costs by ending subsidies for two Ohio coal plants
- Prevents companies from adding surcharges and riders to electricity bills.
- Preserve standard offer services that companies have to compete with
In effect, HB15 may keep costs down and support energy choice.
Critics Speak Against HB15
Not everyone is happy with the bill. For example, the OCC fears that the bill could lead to customers double paying for the program. They say the bill should instead ask utilities to shoulder the costs.
Likewise, some county officials are against the bill. They note that HB15 changes tax revenue. Specifically, taxes shift from generation to transmission lines. Because they don’t need as many power lines, rural areas would lose money. Urban areas, on the other hand, would gain. As a result, this could cut into money for rural emergency services such as fire stations or paramedics.
Why Ohio Introduced HB15
Right now, Ohio is facing down increased energy demand from data centers while many fossil fuel generators are retiring. As a result, the state is facing down a massive supply/demand imbalance that could lead to massive price hikes.
Other parts of the bill include protections for customers on variable rate contracts. Another would eliminate electric security plans (ESP) for utilities. Some argue ESPs let utilities add riders that only increase charges to customers.
That’s why HB15 hopes to overhaul the market and make things better for energy customers.
What About Senate Bill 3?
Senate Bill 3 has a similar focus on energy market overhauls. But one major part that is unique to it forces utilities to promptly provide rate refunds to customers once the Ohio Supreme Court deems they are owed. According to the OCC, Ohioans have been denied around $1.5 billion in refunds since 2009!
Next Steps For Ohio Energy
It’s easy to see that Ohio has to do something about the current energy problem. Data centers require a lot of power and this is a trend that may not change in the near future. On top of that, Ohio homes need more power than ever to stay comfy in the winter and summer months. That’s why lawmakers seek to create lasting solutions.
HB15 may provide a lot of the solutions if it becomes a law. However, there are problems that need to be ironed out to keep it fair. For now, following energy saving tricks can help keep your rates down.
You can always trust https://www.ohenergyratings.com for tips and tricks to help lower your bills. You can also count on us to help you shop for the best energy deals in town.