Ohio’s New Energy Bill

Lawmakers in Ohio have chosen to rescue two existing nuclear plants and two existing coal plants in lieu of mandates on renewable energy and energy efficiency, and as a result, lower electricity prices are expected for electricity consumers. Renewable energy will have to enter the market on its own merits once renewable energy reaches 8.5 percent of electricity generated in the state—up from about 3 percent today—and once federal subsidies expire. Residential charges will be lowered by over $2.00 per month by the legislative change and grid reliability is expected to be enhanced. The Ohio bill is contrary to what most states are doing and it will be an interesting exercise to contrast future electricity prices here and in surrounding states that are continuing their renewable mandates and forcing new capital expenditures because of mandates and subsidies.