Press Release

April 30, 2025

Ohio Lawmakers Pass Major Energy Market Overhaul

This legislation offers the most meaningful utility reform Ohio has seen in more than a decade.

Columbus — The House and Senate voted today to pass House Bill 15, a bipartisan reform package that will overhaul Ohio’s energy market to boost electricity supply, lower customer costs, and strengthen the state’s power grid.

The legislation strikes at two of the costliest features of Ohio’s current energy policy. First, it eliminates Electric Security Plans (ESPs) – a provision in current law that allows the utilities to build major projects on a standalone basis without being subject to the scrutiny of a rate case. Utilities have used this loophole to raise rates without considering their true financial picture. Second, the bill ends coal subsidies for the Ohio Valley Electric Corporation (OVEC), which forced Ohioans to bankroll aging coal plants.

Further, in order to spur the building of new power plants, the bill clarifies that regulated utilities will not be permitted to build new power plants any time in the near future. This certainty boosts the competitive market, where lower costs and private-sector innovation drive better outcomes for consumers.

Importantly, the final legislation includes some clean energy provisions including requiring utilities to consider grid-enhancing technologies (GETs)  when building new transmission. These technologies offer a cost-effective way to meet demand – improving the efficiency of existing transmission infrastructure, allowing more power to flow across the grid without the need for expensive new lines or power plants.

“Today’s vote is a long-overdue win for Ohio consumers,” said Rob Kelter, Managing Attorney with the Environmental Law & Policy Center. “With the passage of HB 15, we’re finally seeing real action to rein in costs, and make the energy system work for Ohioans.”

Still, Kelter emphasized that there’s more work to be done — especially when it comes to managing demand.

“While we’re pleased with the overall bill, the legislature can still do more to reduce demand. The legislature confirms that utilities should still run demand response programs for large commercial customers, but does not address the need to run similar programs for residential and small commercial customers,” he added, “As the state adds new electricity load from data centers, manufacturing, and electric vehicles, demand response will help lower peak electricity use, which reduces strain on the grid and ultimately saves all Ohio utility customers money.”

This legislation offers the most meaningful utility reform Ohio has seen in more than a decade. ELPC appreciates the hard work of legislators, staff, and allies who made this progress possible.