OhioHB 15136th General Assembly (2025-2026)HouseWALLET

Amend competitive retail electric service law

Sponsored By: Roy Klopfenstein (Republican)

Signed by Governor

TaxationUtilities Electric UtilitiesGas Utilities

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Bill Overview

Analyzed Economic Effects

54 provisions identified: 34 benefits, 5 costs, 15 mixed.

Backup electricity when your supplier fails

Electric utilities must provide a fair standard offer that includes a firm electricity supply in their service areas. After notice and a chance for a hearing, state regulators can find that a competitive supplier has failed. Affected customers then move to utility service after reasonable notice, until they choose another supplier. Some customers instead move to a qualifying existing utility plan. The law does not set their electricity price.

Local electricity buying keeps customer safeguards

Cities, townships, and counties can arrange group electricity buying without the former restriction tied to competition's starting date. They must adopt an ordinance or resolution. Automatic enrollment of nonmercantile customers still requires applicable voter approval, notices, and opt-out steps. Local buying programs can no longer elect to deny customers utility standby service. The law also removes the special market-price and renewable-cost rule for returning customers, without stating replacement prices.

Customers stop paying specified energy charges

Beginning on the relevant sections' effective dates, utilities cannot collect the specified legacy-generation or Solar Generation Fund charges. Utilities also cannot seek replacement charges to recover those legacy-generation costs. Standard offers must drop previously approved transition-cost allowances when their existing scheduled end dates arrive. The law does not state each customer's bill reduction.

Consumer protections cover small business electricity customers

Ohio’s electric consumer protections apply to qualifying small commercial customers. They must receive nonresidential service and have demand no greater than 25 kilowatts during the preceding 12 months. Customers managing multiple meters are excluded if any managed meter reached 25 kilowatts during that period. Customers who choose to combine demand across customer-managed meters are also excluded.

Faster approvals for qualifying utility sites

Designated priority investment areas get faster review for power plants, transmission lines, and gas pipeline infrastructure. Applications must meet state commission requirements; the chair has 45 days to check compliance, followed by 45 days for a decision. A separate 60-day decision track covers facilities on applicant-owned land, leases of at least 25 years, easements, rights-of-way, or combinations. That track excludes leased or right-of-way sites needing additional consent from anyone other than the Board. Missed compliance deadlines mean compliance; missed decision deadlines mean approval and issuance of a certificate.

Grants help redevelop former industrial energy sites

Eligible brownfields and former coal mines in designated priority investment areas can receive project grants up to $10 million. Eligible work includes assessment, cleanup, site preparation, planning, and qualifying energy or battery-storage activities. Sponsors must meet Development Department eligibility rules; grants cannot fund construction or operation of electric generating infrastructure. Each appropriation reserves $1 million per county, reduced proportionally when the appropriation is below $88 million. County reserves last one calendar year before reverting; unreserved money is available statewide first-come, first-served.

Open bidding replaces existing electricity plans

Utilities must competitively bid their electricity supply in their first application under the new standard-offer process. State regulators first check grid access, market monitoring, and published future-price information. Bidding must be open, fair, transparent, and independently overseen. Qualifying existing plans cover the transition and end after their final auction delivery period approved when the amendments took effect. The law does not guarantee lower prices.

Utilities recover transmission costs through customer charges

Ohio’s utility commission must create a cost-recovery charge for electric utilities providing a qualifying standard service offer. It covers transmission, grid congestion, support services, and related costs required for that offer. The charge is nonbypassable, meaning covered customers cannot avoid it. The law does not state an individual customer’s charge or bill increase.

Tax-exempt energy projects must pay counties annually

For each exempt tax year, qualified energy project owners or qualifying sale-and-leaseback lessees must make county payments replacing taxes. Solar projects pay $7,000 per megawatt, using capacity as of the prior December 31. Other listed renewable, clean-coal, advanced-nuclear, and cogeneration projects pay $6,000 per megawatt when their Ohio construction workforce share reaches 75%. They pay $7,000 at 60% to under 75%, or $8,000 at 50% to under 60%, using full-time-equivalent worker counts. Payments follow public utility personal property tax deadlines; counties can require extra payments, capped at $9,000 per megawatt total.

Electric rate deadlines allow temporary changes

After 275 days without a decision in an electric rate-increase case, the company can request a temporary increase. Any party can request a temporary decrease. Either change is capped at the staff report's midpoint and is subject to later reconciliation and refunds. The commission must issue an order within 360 days after filing, or the application is approved by law.

Expired utility charges get later reconciliation

When an electric security plan ends, utilities can record balances from extra bill charges that end with it. Those balances can reflect money collected above or below the amount due. They include carrying costs at the utility's weighted average debt cost. The first distribution rate case after expiration must address those balances, which can affect later bills.

Steadier electricity prices, but later charges

State regulators can phase in electricity prices when needed for consumer price stability. Delayed costs and carrying charges remain payable through a surcharge customers cannot avoid by switching suppliers. Some costs approved under earlier utility plans also qualify for financing and later customer recovery. Those costs need a final approval order with appeals exhausted and must satisfy the law's definition and exclusions. The law does not specify charge amounts.

Utility bonds spread costs across bills

Electric distribution utilities can seek approval for bonds that recover uncollected phase-in costs and financing costs through customer charges. The commission must find that bonds measurably improve customer savings and soften rate impacts compared with other recovery methods. The financing order must also meet state electric-policy requirements. Charges follow an approved adjustment process and begin when the bonds are issued.

Faster utility approvals with new grid checks

The Power Siting Board has 45 days to check major utility applications; missing that deadline means filing requirements are satisfied. It must schedule a hearing 45 to 60 days after receiving a compliant application and decide within 150 days of completeness. Missing the decision deadline means approval and issuance of a certificate. Transmission lines and generating facilities need findings supporting economical, reliable service. Transmission applicants also must consider cost-effective advanced technologies, but need not install a specific technology.

Utilities gain flexibility but face market limits

Utilities cannot provide previously classified competitive retail services, except through the law's standard-offer provisions. Business-separation plans apply when utilities provide both noncompetitive electricity and nonelectric products or services, directly or through affiliates. Competitive electricity alone no longer triggers those plans, and power-plant transfers no longer need prior state commission approval. Utilities also cannot trade storage bought for distribution service in wholesale electricity markets. Utilities must still provide the standard electricity offer.

Advance warnings before energy rates change

Electric and gas suppliers must warn customers before fixed introductory rates change to variable rates. Notices must arrive 60–90 days and 15–45 days before expiration; the second gives the initial variable rate. Both list the expiring rate, expiration date, and state comparison website; electric notices also give the utility's comparison price. Annual notices after conversion explain that customers have variable rates and that fixed-rate contracts are available. These rules cover residential customers, small commercial electric customers, and non-mercantile commercial gas customers; electronic delivery requires verified consent. Electric notice rules must be adopted within 150 days after the section takes effect.

Customer refunds for improper utility charges

Charges found improper by the Ohio Supreme Court are refundable from its decision until the commission changes them on remand. Within 30 days, the commission must order payment and decide what happens to money that cannot be refunded. Refunds are divided among customer classes in proportion to the original charges. Separately, utilities must submit recalculated rates within 90 days after actual data for all included revenue and expense adjustments becomes known. Those adjustments cannot raise rates, and utilities must propose refunds of the difference over 12 months.

Financial backing protects energy supplier customers

The state utility commission must require competitive electric and natural gas suppliers to maintain financial backing against default. That backing must protect customers and their utilities. Utilities can set reasonable financial security standards through their tariffs. Brokers and aggregators are excluded from these supplier requirements.

Gas customers can switch using identification

When you consent to change gas suppliers, you can provide identification instead of giving the new supplier your account information. You must provide valid government-issued identification or another sufficient form that accurately establishes your identity. Ohio’s utility commission must adopt rules requiring gas companies to process supplier changes using customer account information.

Identification makes changing electric suppliers easier

Customers who agree to switch electric suppliers can provide identification instead of giving account information to the new supplier. Government-issued identification or another sufficient form must accurately establish the customer's identity. The state utility commission must require utilities to process these switches using customer account information.

Limits on costs charged to customers

Utilities cannot charge nonparticipating customers for their behind-the-meter power service or its facilities. That protection also covers stranded costs from a facility closing or a customer's operations ending. State regulators lose the authority to include an allowance for construction work in progress in utility valuations. Related construction-allowance limits and offsets also end. No household savings amount is stated.

Protections for local group electricity buying

The state utility commission must review market-rate applications for terms that harm large-scale government electricity buying groups. Resulting offers cannot contain harmful rates, prices, conditions, or other terms. The commission must also adopt rules and issue orders encouraging these buying groups. The law does not guarantee lower bills.

Public utility settlements protect weatherization support

Electric utilities and affiliates cannot use off-record payments or private deals to induce settlements in utility commission cases. The commission can still approve payments to governments, nonprofits, or associations providing low-income home weatherization services. Payments must reasonably match program costs, and programs must be audited. These payments cannot fund weatherization education programs.

More options for customer-owned power systems

Self-generators can use facilities installed or run by owners or contractors, including through leases or power purchase agreements. Facilities must mainly supply the owner on property the owner controls. Mercantile customers can also share generation or storage systems owned or run by members or another entity. Shared systems must mainly serve members and use qualifying controlled property or adjacent land with a direct connection. Both types must deliver power directly to the customer side of the meter without using utility or cooperative power lines.

More sources qualify as renewable energy

Ohio's renewable-energy definition now includes linear generators that meet the law's definition. Methane gas from active coal mines also qualifies. Methane from abandoned coal mines remains included. The change expands eligible resource types but does not set household payments or electricity rates.

Optional electricity programs for business customers

During utility rate-increase reviews, the commission can approve programs available to all energy-intensive customers without discrimination. Programs can support jobs, economic development, or interruptible rates that help grid reliability. It can also approve nondiscriminatory transmission billing programs available to all mercantile customers. Those programs can align charges with utility transmission costs or let competitive suppliers bill transmission service directly. Approval is optional, and the law sets no savings or bill amount.

Full financial records support forecasted rates

Electric companies using forecasted rate periods must provide required financial information from their full books. The commission must require reports on property already held or expected during the forecast period. Property values use specified costs minus depreciation reserves and money received to help cover those costs. The commission must protect trade secrets and private business information from disclosure.

Acquired water systems get valuation safeguards

The law sets valuation rules when a large water or sewage company acquires a municipal system. If regulators find the costs just and reasonable, fair market value comes from three independent appraisals. The parties must jointly select experts from the statutory list. Reported original cost cannot exceed the lower of that appraised value or the purchase price. This does not set customer rates.

Energy storage gains recognition under state law

Ohio's energy-resource and energy-facility definitions now include systems that store energy for later use as electricity. Energy-company activities also include storing and releasing electricity. The related energy-company classification applies to facilities with combined nameplate capacity over 250 kilowatts. This change does not create a household payment.

Public maps show electric grid capacity

Distribution utilities must post grid capacity maps online by May 31, 2026, and update them at least quarterly. Maps must cover capacity, load or generation, circuits, substations, and distributed energy resources. The commission must set uniform standards and hold at least two stakeholder meetings yearly; it can require more data. Covered transmission owners outside regional transmission organizations must map additional load capacity and local generation capacity, accounting for signed service agreements. Transmission maps must be posted unless they contain protected infrastructure information; municipal utilities and electric cooperatives are exempt.

Qualifying solar operators get upfront payments

Qualifying solar resources can receive renewable credits for electricity that also received solar credits, removing the restriction dating from January 1, 2020. Resources receiving qualifying solar credits in 2024 based on prior three-year average production receive an upfront payment. The payment equals the net present value of forecast future Solar Generation Fund payments. The state must calculate and remit it within 45 days of the section's effective date, annualizing production records shorter than one year. Other remittances from that fund are prohibited.

Self-generators gain exemptions from utility rules

Self-generators and mercantile customer self-power systems are excluded from the legal definition of an electric light company. Connected self-power systems serving their mercantile members are also excluded from certified electricity service-territory rules. Load centers are excluded to the extent they generate their own power. For nonprofit suppliers, another exclusion covers new load centers entering service after the amendments' effective date using either arrangement.

Utilities gain more rate-case planning flexibility

Utilities outside the electric forecast option propose a 12-month period for measuring rate-case costs and revenues. It can start no more than six months before filing and end no more than nine months after filing. State regulators can no longer order a different period. Utilities can propose measured adjustments for expected changes during that period or the following 12 months. Regulators include adjustments only when they find them just and reasonable.

Utilities must publish yearly outage reports

Electric distribution utilities must publish annual reliability reports with outage, interruption, substation, and upgrade measures identified by circuit. The state utility commission must publish an annual statewide report. That report must summarize trends and recommend grid modernization measures.

Low-interest loans for school energy upgrades

School districts can apply for loans covering all or part of energy conservation installment or shared-savings contracts. The Ohio Facilities Construction Commission can issue loans from the school energy performance contracting loan fund. Loans charge 2% annual interest and must be repaid within 10 years. Repayment starts six months after installation or implementation is complete. Repayments and specified other receipts return to the fund, and the commission can set additional loan terms.

Remaining solar funds support school energy loans

The state treasurer must first pay qualifying solar resource owners or operators the net present value of forecast payments. This is the current value of those expected future payments. The treasurer then transfers all remaining Solar Generation Fund cash to the school energy performance contracting loan fund. The law does not state the transfer amount.

Schools can finance energy-saving solar panels

City, exempted village, local, and joint vocational school districts can use installment-payment contracts to buy and install solar panels. The panels must be part of installation, building modification, or remodeling work that reduces energy use. The law does not require a project or provide a funding amount for this change.

Energy storage projects gain tax exemption eligibility

Energy storage systems now count among projects eligible for Ohio’s qualified energy project property tax exemptions. Projects need development director certification and must meet application, construction, and county approval requirements. Projects of at least 20 megawatts require county approval. Renewable project property must enter service before the tax year following its qualifying year, and certification must remain valid. Qualifying real property stays exempt for the same years as the project’s equipment.

Five-year tax breaks for redevelopment infrastructure

Local governments can request priority investment status for brownfields or former coal mines, with five-year tax exemptions for qualifying property. The development director has 90 days to decide; no decision means approval. Designation standards must favor areas hurt by the coal industry’s decline. Electricity or natural gas transport equipment qualifies when placed in service in the area while its designation is active. Its exemption starts the next tax year and lasts five tax years.

Lower taxable values for electric companies

Beginning in tax year 2027, specified electric and rural electric company equipment is assessed at 7% of value. This covers production or energy conversion equipment first taxed in Ohio in 2027 or later, plus converted or repowered production equipment. For electric companies, qualifying pre-2027 transmission, distribution, and energy conversion property is assessed at 85%. Their other transmission and distribution property is assessed at 25%, and other taxable property at 24%. For rural electric companies, qualifying pre-2027 transmission, distribution, or energy conversion property is assessed at 50%, and all other taxable property at 25%. These are assessment percentages, not tax rates or promised household savings.

Lower taxable values for energy companies

Beginning in tax year 2027, energy company production or energy conversion equipment first taxed in Ohio that year or later is assessed at 7%. Converted or repowered production equipment also receives the 7% assessment. Qualifying transmission and distribution property first taxed before 2027 is assessed at 85%; other transmission and distribution property at 25%. Other production equipment is assessed at 24%, and all other taxable property at 85%. These percentages set taxable portions of value, not tax rates, and do not guarantee lower household bills.

Lower taxable values for newer pipelines

Beginning in tax year 2027, pipeline company property first taxed in Ohio before 2027 is assessed at 88% of true value. All other taxable pipeline company property is assessed at 25%. These percentages determine taxable value, not the tax rate. The law does not set household savings.

Customers lose specified utility credit offsets

Electric companies no longer must return specified tax credits for Ohio coal burned before January 1, 2000. The former rule required a customer rate or fuel-cost offset within three years and limited uses of those credits. Separately, utility revenue calculations no longer subtract interest paid on customer refunds from service costs. The law does not state the resulting bill effect.

Electricity providers face updated renewable-payment rules

The law removes a cross-law qualification on renewable requirements for electric distribution utilities and electricity service companies. The benchmark still reaches 8.5% of retail electricity sold by the end of 2026. Annual compliance-payment adjustments use the federal urban wage-earner and clerical-worker consumer price index. A comparable index replaces it if publication stops. The renewable compliance payment cannot fall below $45 per megawatt-hour of shortfall.

New limits on power-plant closure agreements

No person can enter a settlement to abandon, close, or shut down a base-load plant or utility-owned or operated generating plant. This does not require plants to run indefinitely. State regulators also cannot approve a utility transition-plan part that abandons service without the finding required by abandonment law. The former qualification tied to business-separation law is removed.

Energy projects follow power sale rules

Energy project owners or lessees generally must first offer power or renewable credits to covered electric companies requesting bids. Covered buyers are companies subject to the state's renewable-energy requirements. Projects can sell elsewhere if no covered buyer requested bids by December 31, 2010, or accepted within 45 days. Exceptions cover specified rural electric or municipal power arrangements and contracts made before June 17, 2010.

New boundaries for electric utility oversight

A distribution utility must provide retail distribution service and cannot own or operate a power plant under the new definition. Electric light companies now include electric services companies, and specified exclusions for self-generators are removed. Competitive retail electric service is generally exempt from listed city and commission oversight rules. Utility-provided competitive service must follow state standard-service requirements. Legal exceptions and other electric-market rules still apply, and the commission retains authority to enforce the exceptions.

Faster business returns to utility service

Utilities must return mercantile customers to standard electricity service within three business days after a certified supplier request. The customer's voluntary service agreement must explicitly authorize the expedited return. Commission rules must allow reasonable processing fees charged to suppliers to recover administrative costs. Utilities following those rules are not liable for disputes arising from the return.

Electric utilities can propose three-year rates

Electric companies can propose annual base rates for three consecutive 12-month periods in one forecast-based application. The first uses a 13-month average forecasted rate base; later periods can include approved additions to utility property. The commission can reconcile forecasted and actual investment, revenue, and expenses, including only property used and useful for service. Companies must file another rate case after the third period. Distribution utilities must also file by December 31, 2029, and at least every three years afterward.

Grid upgrades require technology cost reviews

Transmission line certificate applications must summarize studies of cost-effective technologies that improve value, capacity, or reliability. Long-term transmission forecasts must compare advanced technologies with traditional upgrades and assess congestion, costs, feasibility, and expected reductions. Reports must identify congestion occurring at least 50 hours yearly during the past three years or likely within five years. Entities must propose grid-enhancing plans where payback meets the commission's limit. The commission reviews reports and approves implementation plans, including cost recovery; certificate applicants need not use a specific technology.

Limits on utility customer-site power deals

Distribution utilities can offer behind-the-meter generation using facilities filed under the former law by March 31, 2025. They do not have to offer this service. Utilities cannot offer inducements to get customers to sign these power contracts. Utility agreements with mercantile customers to build customer-site renewable resources remain in force under their terms and the former law. Those agreements must have been signed and filed with the commission before this law took effect.

Utilities use forecasts and report property values

Utility rate valuations can include property expected to be used to provide service. Electric companies must choose the forecasted-period option; gas, water, and sewage companies use the applicable future valuation date. State regulators must prescribe valuation reports for utilities outside the electric forecast process and for railroads. Gas, water, and sewage reports must include applicable projected property. Water reports must also include service-line replacement costs and customer reimbursements.

Energy projects face workforce and training rules

Certification applications made on or after October 3, 2023, require Ohio-based construction or installation workforce shares of 70% for solar. Other projects must meet 50%; the solar threshold falls from 80% to 70%. Applications after October 3, 2023, also require specified federal wage and apprenticeship standards when county approval is required. Energy project owners or lessees above 20 megawatts must partner with an eligible Ohio education or training provider. These partnerships must support wind or solar careers through options such as internships, apprenticeships, research, or course development.

Large businesses gain flexible electricity billing

Electricity suppliers can offer mercantile business customers daily, weekly, milestone-based, online-only, or prepaid billing. Customers must agree to the arrangement in their service contracts. Suppliers must follow applicable laws and regulations. State regulators cannot prohibit required electronic payment under these nontraditional agreements. The law sets no price or guaranteed savings.

Sponsors & Cosponsors

Sponsor

Roy Klopfenstein
Republican • House

Cosponsors

Adam C. Bird
Republican • House
Adam Holmes
Republican • House
Adam Mathews
Republican • House
Al Cutrona
Republican • Senate
Al Landis
Republican • Senate
Andrew O. Brenner
Republican • Senate
Angela N. King
Republican • House
Anita Somani
Democratic • House
Bernard Willis
Republican • House
Beryl Brown Piccolantonio
Democratic • House
Beth Lear
Republican • House
Bill Reineke
Republican • Senate
Bill Roemer
Republican • House
Brian Lampton
Republican • House
Brian Lorenz
Republican • House
Brian M. Chavez
Republican • Senate
Brian Stewart
Republican • House
Casey Weinstein
Democratic • Senate
Cecil Thomas
Democratic • House
Chris Glassburn
Democratic • House
Daniel P. Troy
Democratic • House
David Thomas
Republican • House
Derrick Hall
Democratic • House
Elgin Rogers, Jr.
Democratic • House
Eric Synenberg
Democratic • House
Gary Click
Republican • House
George F. Lang
Republican • Senate
Hearcel F. Craig
Democratic • Senate
Ismail Mohamed
Democratic • House
Jack K. Daniels
Republican • House
Jane M. Timken
Republican • Senate
Jennifer Gross
Republican • House
Jerry C. Cirino
Republican • Senate
Jodi Salvo
Republican • House
Johnathan Newman
Republican • House
Joseph A. Miller, III
Democratic • House
Josh Williams
Republican • House
Karen Brownlee
Democratic • House
Kent Smith
Democratic • Senate
Kevin Ritter
Republican • House
Kyle Koehler
Republican • Senate
Levi Dean
Republican • House
Marilyn John
Republican • House
Mark Hiner
Republican • House
Mark Romanchuk
Republican • Senate
Mark Sigrist
Democratic • House
Matthew Kishman
Republican • House
Melanie Miller
Republican • House
Meredith R. Lawson-Rowe
Democratic • House
Michael D. Dovilla
Republican • House
Michele Grim
Democratic • House
Michele Reynolds
Republican • Senate
Monica Robb Blasdel
Republican • House
Munira Abdullahi
Democratic • House
Nathan H. Manning
Republican • Senate
Nickie J. Antonio
Democratic • Senate
Paula Hicks-Hudson
Democratic • Senate
Phil Plummer
Republican • House
Riordan T. McClain
Republican • House
Rob McColley
Republican • Senate
Rodney Creech
Republican • House
Sandra O'Brien
Republican • Senate
Sean P. Brennan
Democratic • House
Sharon A. Ray
Republican • House
Stephen A. Huffman
Republican • Senate
Steve Demetriou
Republican • House
Steve Wilson
Republican • Senate
Terrence Upchurch
Democratic • House
Terry Johnson
Republican • Senate
Tex Fischer
Republican • House
Theresa Gavarone
Republican • Senate
Thomas F. Patton
Republican • Senate
Thomas Hall
Republican • House
Tim Barhorst
Republican • House
Tim Schaffer
Republican • Senate
Tom Young
Republican • House
Tristan Rader
Democratic • House
Ty D. Mathews
Republican • House
William P. DeMora
Democratic • Senate
Willis E. Blackshear, Jr.
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 254 • No: 6

Senate vote • 4/30/2025

Passed

Yes: 33 • No: 0

House vote • 4/30/2025

Concurred in Senate amendments

Yes: 94 • No: 2

Senate vote • 4/29/2025

Energy: Reported

Yes: 12 • No: 0

House vote • 3/26/2025