Lawmakers Closer to Overhauling Ohio Energy Market
Posted onOhio Closer To Energy Market Change
It's no secret that Ohio has a problem with electricity rates. In fact, EIA 2023 estimates show Ohio homes paid over $120 per month on average. Mind you, those come well before recent rate hikes and concerns about increased energy demand. But Ohio lawmakers have been working to reform the state's energy market to make your rates a lot more affordable. Here's what you need to know about Ohio's potential energy market overhaul.
New Ohio Energy Reform Bills
The Ohio Senate and House recently passed bills SB2 and HB15. These bills are packed with many provisions to help reform Ohio's energy market. This includes quite a bit of discussion on renewable energy, rates, and pricing. While this means both bills are similar, key differences do exist.
For example, both bills prevent companies from adding Electric Security Plans to bills. This keeps companies from adding on costly riders that could hike up your bills. Both bills also set a strict December 31, 2029 deadline to file rate cases. Companies must then file new rate cases every three years after. Finally, each bill creates a way for customers to receive refunds on unreasonable, unlawful, or improper rates and riders.
In other words, companies must be timely with rate case filings, cannot add on pricey surcharges, and must pay refunds when owed.
Speaking of refunds, HB15 requires that money that has been collected for solar projects, but not remitted must be repaid to customers. However, SB2 requires that the money be placed into a fund that could be offered as loans for energy conservation and energy-saving contracts. This includes solar panel installation.
How HB15 And SB2 Help Customers
As you can guess, there's a lot to unpack between both bills. So it can be hard to figure out what the bills can do to help you. But this list goes over some of the other major points that you should know:
- Both bills repeal the 2019 HB6 subsidies for two Ohio Valley Electric Corporation (OVEC) coal fired power plants. These plants have cost Ohio ratepayers nearly $500 million.
- HB15 and SB2 support behind-the-meter generation to allow high demand businesses to set their own generator systems. These not only supply them with power but also keep their high demand isolated from the rest of the Ohio grid. At the same time, it also allows these behind the meter generators to sell their excess power into the Ohio grid, which helps keep residential power prices low.
- SB2 allows the creation of voluntary demand response programs. These programs let utilities reduce a participating customer's load during peak times. For example, lowering your smart thermostat settings to reduce energy use.
- HB15 allows the creation of community energy systems. These systems could lower bills by allowing small communities to generate its own power and help offset energy demand.
We're still waiting to see finalized versions of these bills. But one thing's for sure, once the final bill is signed into law, lawmakers expect it to keep prices down. Until then, you should make saving energy a priority and shop for cheaper electricity rates.
You can start your shopping right here at https://www.ohenergyratings.com. We're also your best choice for tips and news that could affect your bills.