PRESS RELEASE – State Representative Jim Hoops (R-Napoleon) voted yesterday in support of House Bill 15 – a market-driven initiative that aims to boost power generation in Ohio, improve affordability for ratepayers and increase reliability within the state’s electrical grid.
“It was an honor to vote for common sense legislation that will boost and diversify energy generation in Ohio, while protecting ratepayers,” said Hoops.
House Bill 15 will make the following changes:
Strengthen Ohio’s economy with reliable and affordable energy
- Allows intrastate transmission so that more parties may enter the market, fostering competition and expanding Ohio’s grid.
- Allows local communities to apply for a “priority investment area” designation, which, if granted, exempts the company from paying TTP tax on transmission, distribution, and pipeline infrastructure for 5 years, further incentivizing the development of new energy generation in Ohio.
Improve energy affordability for all Ohioans
- Eliminates the option for utility companies to file an Electric Security Plan (ESP) and requires them to come to the Public Utilities Commission of Ohio (PUCO) for a rate case, holding utilities accountable by closing a current ratepayer affordability loophole and requiring utility companies to undergo a more comprehensive review that determines consumer rates, ultimately protecting ratepayers.
- Requires all Standard Service Offers (SSO) to be Market Rate Offers (MRO), increasing transparency and helping consumers make informed decisions when shopping for energy.
- Prohibits Electric Distribution Utilities (EDU) from bidding in the wholesale market with assets that were paid for by distribution customers, promoting fairness and transparency between utilities and consumers.
- Stops the collection of new money for the Solar Generation Fund while settling the existing Memorandum of Understanding (MOU) with current qualified solar projects. Any remaining funds will be refunded back to ratepayers.
- Establishes Multi-Year Rate Plans (MYRP) at the PUCO where utilities can propose changes to base rates with an annual true-up process, protecting consumers by ensuring rates are reflective of actual costs.
Power Ohio’s current and future energy needs for businesses
- Prohibits EDUs from owning generation, cultivating a competitive market by opening the door to new generation in Ohio and keeping EDUs from passing on financial responsibility to ratepayers.
- Establishes new shot clocks on the PUCO and OPSB, eliminating regulatory lag to ensure the processes are completed efficiently and timely.
- Decreases the Tangible Personal Property (TPP) tax on new generation and energy conversion equipment from 25% to 7% starting in tax year 2027 and reduces TTP tax on new transmission, distribution, and pipeline infrastructure from 88% to 25% in tax year 2027, aligning Ohio with surrounding states and incentivizing new energy generation.
- Requires EDUs to update and publish capacity heat maps of their system on their website, promoting transparency. This legislation also requires the PUCO to hold annual stakeholder meetings and produce annual statewide reliability reports on data trends and grid modernization recommendations, addressing energy generation and aging infrastructure needs.
- Establishes the Community Energy Pilot Program, revitalizing brownfields and distressed land and diversifying energy generation throughout Ohio communities.
This legislation comes in response to the high demand for electricity generation as Ohio continues to lead as a major tech hub in the Midwest, attracting various data centers and companies such as Anduril, Honda and Intel.
This legislation presents a comprehensive strategy for ensuring that Ohio can meet the growing electricity demand created by business growth and development, while also making it more affordable for Ohioans.
The bill now moves to the Ohio Senate for consideration.