Representative Lorenz Votes to Concur on Sub. House Bill 15

State Representative Brian Lorenz (R-Powell) today announced that the Ohio House of Representatives concurred on Senate amendments to Sub. House Bill 15 – a market-driven initiative that will improve affordability for consumers and increase energy generation, resulting in a more reliable grid. This legislation supports Ohio’s economic growth by ensuring access to reliable, affordable energy.

“Advocating for energy that is affordable and reliable for all Ohioans is a top priority for me,” said Representative Lorenz. “We need to work towards energy independence and transparency for our future generations, Substitute House Bill 15 does just that.”

Sub. House Bill 15 makes the following updates:

Improves 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 and pays the projects their expected revenue at a discount. The remaining amount transfers to the School Energy Performance Contracting Loan Fund to be administered by the Ohio Facilities Commission (OFCC) to a board of education of a city, exempted village, local, or joint vocational school district that applies for a loan to pay all or part of an installment contract for the purchase and installation of energy conservation measures or shared saving contract for energy saving measures. 
• 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.

Powers 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.
• Allows local communities to apply for a “priority investment area” designation, which, if granted, exempts the company from paying Tangible Personal Property (TPP) tax on transmission, distribution, and pipeline infrastructure for 5 years, further incentivizing the development of new energy generation in Ohio.
• Establishes new shot clocks on the PUCO and OPSB, eliminating regulatory lag to ensure the processes are completed efficiently and timely.
  Decreases the TPP tax on new generation and energy conversion equipment from 25% to 7% starting in tax year 2027 and reduces TPP 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. 

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 will now be sent to Governor DeWine for his signature.