Ohio Senate committee approves major energy bill SB 2

The Ohio Senate Energy Committee has unanimously approved a major energy reform bill aimed at boosting new power plant development. This decision paves the way for a full Senate vote scheduled for Wednesday. Meanwhile, the Ohio House is working on its own version of the bill. Senate Bill 2 covers many areas of the energy market. It changes how power companies set their rates, gain permission for new sites, and introduces rules for behind-the-meter power generation. It also offers tax exemptions for new energy facilities and removes a subsidy for older coal plants that was part of a 2019 bill. The bill has undergone several revisions during its progress. It gained some consumer-friendly measures while also incorporating utility-promoting changes. For example, one new restriction prevents power companies, like AEP and FirstEnergy, from offering behind-the-meter services. However, they can set new rates once every three years, which some utilities find unsatisfactory. AEP Ohio's Vice President, Frank Strigari, voiced concerns about these restrictions, claiming they limit customer options and could harm the company's ability to invest in infrastructure. He argued that the removal of the coal subsidy could result in significant financial losses for the company. Despite opposition from AEP, the committee members were not persuaded by his arguments. They believe the bill provides a clear structure for the energy market. Supporters from various sectors, including consumer advocates and environmental groups, praised the legislation. Senate committee chairman, Brian Chavez, stated that the bill would soon move to a vote in the full Senate. The House's version of the bill is also progressing, and lawmakers hope to reach compromise soon. Senator Reineke, who sponsored the bill, emphasized that it creates a welcoming environment for new energy investments in Ohio.