Ohio set for significant change with House Bill 15 overhauls state's energy policies
Ohio's energy landscape is set for significant change with the passage of House Bill 15, a comprehensive overhaul of the state’s energy policies. Currently awaiting Governor Mike DeWine’s signature, the bill’s provisions will largely take effect 90 days after enactment, although certain specific sections have varying timelines. A central aspect of the legislation is the phasing out of electric generation customer choice, effectively ending the ability for consumers to select their electricity supplier. This change is accompanied by extended consumer protections, now encompassing smaller commercial customers using up to 25 kilowatts. To enhance transparency, retail electric suppliers will be mandated to provide advance notice – specifically two notices – before transitioning customers from fixed-rate plans to variable-rate plans. Recognizing the need for flexibility, the bill also allows competitive providers to offer diverse billing options, such as daily, weekly, or milestone-based schedules, tailored for larger commercial clients.
House Bill 15 also addresses the ability of large energy users to generate their own power. The legislation authorizes commercial customers with significant energy consumption – exceeding 700,000 kWh annually – to establish self-power systems. Critically, these systems are designed to connect directly to the customer’s premises, circumventing the standard utility distribution and transmission infrastructure. The Power Siting Board (PSB) will also experience changes, with a directive to expedite approvals for electric generating plants, transmission lines, and gas pipelines within designated “priority investment areas.” Approvals for major utility facilities (50 megawatts or greater), high-voltage transmission lines, and pipelines exceeding 500 feet will also be accelerated.
The bill also touches upon Ohio’s participation in regional power grids. Discussions are underway regarding the state's continued membership in PJM, with consideration being given to alternative organizations like MISO. While House Bill 15 represents a substantial step in reshaping Ohio's energy policies, legislative leaders have indicated that additional legislation may be necessary to fully address all related issues. The final enactment hinges on Governor DeWine’s signature, after which the changes will gradually be implemented.