Toledo, Ohio — Lawmakers in Ohio have begun discussions on a proposed energy bill that aims to enhance power generation in the state while making electricity more affordable for residents. The comprehensive energy initiative, which is garnering attention from both lawmakers and industry experts, seeks to address increasing demand for power while fostering competition in the energy market.
State Rep. Roy Klopfenstein, a Republican from Putnam County, is leading the charge to pass the bill. In the first hearing on Wednesday, Klopfenstein emphasized that the state should not favor one form of energy generation over another but instead allow the market to determine the best solutions to meet future energy demands.
“It is not the role of the state to favor one form of generation over another,” Klopfenstein stated. “Instead, we should open the market to dispatchable energy generation to address future energy shortages.”
The bill, identified as House Bill 15, is designed to remove obstacles for new electricity generation projects. Key provisions include prohibiting Electric Distribution Companies (EDCs) from owning generation assets, preventing them from bidding in the wholesale energy market using ratepayer-funded assets, and transferring the Tangible Property Tax from electric generation facilities to transmission and distribution systems.
Supporters of the bill argue that these changes will facilitate competition and reduce the monopolistic control that some utility companies have over the state’s energy market. In a press release, Klopfenstein explained that the bill would also eliminate subsidies linked to Ohio Valley Electric Corporation (OVEC) under the controversial House Bill 6, which has been embroiled in scandal.
Another key component of House Bill 15 is its focus on affordability for Ohio residents. The legislation includes changes to bonding requirements for Competitive Retail Electric Suppliers and Retail Natural Gas Suppliers. Klopfenstein and his supporters believe these changes will lower electric bills for ratepayers across the state.
The push for new energy policies comes amid an unprecedented surge in demand for electricity, particularly from data centers. Klopfenstein noted that data centers alone are currently consuming 600 megawatts of electricity, and the demand is expected to reach 5,000 megawatts by 2030. This growing demand for power has spurred the need for a more flexible and competitive energy market in Ohio.
“We have witnessed an unprecedented surge in energy demand,” Klopfenstein said. “AEP forecasts that this will increase to 5,000 megawatts by 2030. This trend is not likely to reverse.”
As the debate moves forward, House Energy Chair Adam Holmes, a Republican from Nashport, indicated that the committee will continue to explore the bill in detail with input from industry experts in the coming weeks.
“This bill is going to be our focus in every committee hearing until further notice,” Holmes said. “We’re going to get as many experts in this room to talk to us as we can.”
With growing energy needs and a shifting regulatory landscape, House Bill 15 represents a critical moment in Ohio’s energy policy, as lawmakers seek to balance economic growth, environmental goals, and affordability for residents. The outcome of this debate could have significant implications for the state’s energy future.