COLUMBUS — In a rare bipartisan effort, Ohio lawmakers have taken decisive action to end subsidies for two aging coal-fired power plants, which have been criticized as remnants of a nuclear bailout scandal. The decision, part of House Bill 15, aims to eliminate the $1.50 charge that customers have been paying monthly for nearly five years to support the plants.
Rep. Brian Stewart (R., Ashville) called the subsidies “bad policy,” stating, “We had a nuclear bailout that didn’t have the votes, and a potential coal bailout to help secure votes. It wasn’t good policy then, and it’s certainly not good policy now.”
The coal plants, located near Gallipolis, Ohio, and across the border in Madison, Indiana, were built in 1955 to supply power to the Piketon uranium facility. Despite the nuclear bailout being long gone, Ohio residents continue to foot the bill, which has exceeded $500 million. American Electric Power (AEP) is the largest shareholder in the utility cooperative, Ohio Valley Electric Corp. (OVEC), which owns the plants.
In a vote on Wednesday, the House overwhelmingly approved the bill 90-3, signaling strong support for ending these subsidies. Just a week earlier, the Senate had unanimously passed a similar measure, Senate Bill 2, sponsored by Sen. Bill Reineke (R., Tiffin). The bills also have backing from a coalition of consumer, environmental, business, manufacturing, and energy groups.
However, major utilities, including AEP, have opposed the bills, arguing that the subsidies are crucial for maintaining jobs at the southern Ohio coal plant. Local concerns about job losses have added to the controversy.
The legislation also makes sweeping changes to utility regulations, taxation, and ratemaking. The two chambers will now work to resolve differences before sending a final bill to Governor Mike DeWine.
Lawmakers have been working to undo the fallout from the 2019 nuclear bailout scandal, which was tied to House Bill 6. That bill, initially designed to support two Lake Erie nuclear plants, was entangled with a bribery scheme that led to the indictment and eventual conviction of former House Speaker Larry Householder. Householder was sentenced to 20 years in federal prison for his role in the $61 million scheme.
Rep. Jason Stephens (R., Kitts Hill), who voted against the bill, argued for a more gradual phase-out of the subsidies, citing concerns over fairness. “When Ohio makes a promise, we should honor that,” he said. Rep. Josh Williams (R., Sylvania Township), however, strongly supported the bill, calling the subsidies “tainted” and emphasizing the need for swift action to end them.
“This is the last pillar in the largest scandal in our state’s history,” Williams said. “Any deal linked to a bribe should be null and void.”
The bills would not reinstate the renewable energy or efficiency mandates that were eliminated by House Bill 6, nor would they restore solar credits. Instead, they aim to refund remaining funds from the Solar Generation Fund to ratepayers.
House Bill 15, sponsored by Rep. Roy Klopfenstein (R., Haviland), includes provisions that would:
Lower the percentage of utilities’ new electricity generation equipment subject to the tangible personal property tax (TPPT) from 25% to 7%.
Apply the same tax reduction to utilities’ transmission and distribution infrastructure, as well as new pipelines.
Bar transmission and distribution utilities from owning generation facilities that feed into the grid.
Require utilities to file new rate cases with the Public Utilities Commission of Ohio by 2029 and every three years thereafter.
Expand the Ohio Power Siting Board’s jurisdiction to include projects as small as 69 kilovolts.
Streamline decision-making for utility projects and allow local governments to designate former industrial sites or coal mines as priority locations for new gas and electricity projects.
Senate Bill 2 includes an amendment offering financial incentives to electricity customers who voluntarily grant utilities access to their smart thermostats, allowing for remote adjustments during peak energy hours.
The legislation comes at a time when Ohio is facing potential power shortages, as warned by PJM, the regional operator of the electricity grid. The state’s growing energy demand, driven by data centers and manufacturing plants like those for Intel chips and Honda batteries, makes ensuring stable energy supplies a priority.
Rep. Klopfenstein emphasized that Ohio is taking proactive steps to maintain its energy future, stating, “While other states are restricting new generation, this legislation sends a clear message that Ohio is open for business.”
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