Home News Ohio Manufacturers Testify on Key Energy Legislation, Urge Changes for Cost Savings...

Ohio Manufacturers Testify on Key Energy Legislation, Urge Changes for Cost Savings and Job Growth

0
SHARE

COLUMBUS, OH — Ohio manufacturers testified before the Ohio Senate’s Energy Committee today, calling for changes to key energy legislation that could save billions of dollars for consumers and stimulate job growth in the state.

Tim Ling, Corporate Environmental Director at Plaskolite, LLC, a Columbus-based global thermoplastic manufacturer, emphasized the need to protect and enhance competition in Ohio’s electricity market. He argued that changes to the current energy system could significantly benefit both consumers and employers.

Ling highlighted the need to eliminate Electric Security Plans (ESPs), which were introduced in 2008 under Senate Bill 221. According to Ling, ESPs have outlived their usefulness, and there is no technical or economic reason to continue them. These plans, he said, have added more than $15.3 billion in above-market rate charges to Ohio consumers without improving the reliability or quality of service.

“ESPs only add unnecessary costs paid by Ohio residential and business consumers,” Ling said. “They don’t deliver improvements in service, and they’re a drain on the economy.”

In addition to eliminating ESPs, Ling called for several other reforms to help Ohio’s energy consumers and businesses:

  1. Energy Heat Maps: Creating energy “heat maps” to show areas where Ohio’s transmission grid is over- or underutilized. This would allow businesses to expand in areas with surplus energy capacity and help them deploy “micro-grid” generation assets where there’s limited energy available for new customers.
  2. Increased Transparency: More transparency is needed regarding the true costs of utilities’ transmission system improvement projects, which cost consumers approximately $1 billion annually. Many of these costs have been authorized as “supplemental proposals,” but with little regulatory oversight or accountability to the public.
  3. End to HB 6 Subsidies: Ling also called for an immediate end to and refund of House Bill 6 subsidies, which support the outdated and inefficient coal-burning power plants operated by OVEC. These subsidies, he said, are expected to cost Ohio consumers more than $1.1 billion by 2030.

“These changes will save money for residential Ohio consumers and help all Ohio businesses compete in a marketplace where access to affordable, reliable power is essential to keep and create jobs for Ohioans,” Ling concluded.

Since the introduction of competition in Ohio’s energy market in 2001, consumers have saved approximately $3 billion annually. Additionally, the state has seen the construction of seven new gas-fired power plants since 2017, with four more approved, further strengthening Ohio’s electric grid capacity and reliability.

The manufacturers’ testimony is part of ongoing efforts to ensure Ohio’s energy system remains competitive, affordable, and capable of supporting economic growth across the state.