Ohio House passes bill to improve electricity affordability

OHIO — The Ohio House of Representatives has approved House Bill 15, a market-driven initiative aimed at increasing power generation, improving affordability for ratepayers, and enhancing the reliability of the state’s electrical grid.

Speaker of the Ohio House Matt Huffman (R-Lima) emphasized the importance of the bill in supporting economic development across the state.

“If we’re going to continue to support major economic development projects here in Ohio, then we’re going to need the energy to power them,” said Huffman.

“House Bill 15 is a bold, comprehensive strategy that will prepare our state for future economic growth and promote energy reliability, while improving affordability for ratepayers.”

Key Provisions of House Bill 15

The legislation includes several measures aimed at strengthening Ohio’s energy market:

• Encouraging Competition and Investment: The bill allows intrastate transmission to increase market competition and expand Ohio’s electrical grid. Local communities can apply for “priority investment area” designations, which would grant a five-year exemption from certain taxes to encourage energy infrastructure development.
• Protecting Ratepayers: The bill eliminates Electric Security Plans (ESP) and requires utilities to undergo a more thorough review process through the Public Utilities Commission of Ohio (PUCO) before adjusting rates. It also mandates greater transparency in energy pricing by requiring all Standard Service Offers (SSO) to be Market Rate Offers (MRO).
• Increasing Transparency and Fairness: Electric Distribution Utilities (EDUs) would be prohibited from bidding in the wholesale market with assets paid for by distribution customers. Additionally, the bill stops the collection of new funds for the Solar Generation Fund, refunding remaining funds to ratepayers.
• Incentivizing Energy Development: House Bill 15 decreases the Tangible Personal Property (TPP) tax on new energy infrastructure, aligning Ohio’s tax rates with neighboring states. It also establishes a Community Energy Pilot Program to revitalize brownfields and distressed lands for energy development.

Representative Roy Klopfenstein (R-Haviland), the bill’s sponsor, highlighted the urgency of expanding power generation.

“Ohio takes pride in being ranked number one in the nation for infrastructure and economic development, but we’ve received concerning warnings from PJM about an impending energy shortage as early as 2026,” Klopfenstein said.

“While other states are moving to shut down power generation and limit new construction, this legislation clearly signals that Ohio is open for business and committed to developing new baseload generation, which will benefit both ratepayers and businesses of all sizes across the state.”

House Energy Committee Chair Representative Adam Holmes (R-Nashport) expressed optimism about the bill’s impact.

“We are excited to help create the energy foundation that will support the incredible future in store for all Ohioans,” Holmes said.

House Bill 15 responds to Ohio’s growing electricity demand as the state continues to attract major companies, including Anduril, Honda, and Intel.

Lawmakers say the bill provides a comprehensive approach to ensuring reliable and affordable energy for both businesses and residents.

The legislation now moves to the Ohio Senate for consideration.