COLUMBUS, Ohio — The Ohio Senate has unanimously passed Senate Bill 2, a sweeping energy reform measure that aims to improve transparency, eliminate costly subsidies, and support competitive electricity generation. The Ohio Manufacturers’ Association (OMA) applauded the 31-0 vote, calling it a major step toward securing affordable and reliable power for consumers.
“Senate Bill 2 is a critical step forward in transparency and protection of competitive electricity generation,” OMA President Ryan Augsburger said. “By repealing costly ESPs, customer-paid subsidies for old and inefficient coal power plants, and mandating increased transparency, Ohio consumers are that much closer to a more reliable grid and lower utility bills.”
The bill, sponsored by Sen. Bill Reineke, R-Tiffin, and championed by Senate President Rob McColley, R-Napoleon, is part of a broader push to expand Ohio’s energy production. On the opening day of the legislative session, McColley emphasized the importance of policies that encourage investment in energy infrastructure, particularly in natural gas.
“What we need to do is create policies that will generate more investment in energy in the state of Ohio,” McColley said. “Primarily base load power, primarily natural gas that can be extracted here from inside the state, and that’s going to be a win-win for Ohio.”
One of the bill’s most notable provisions is the repeal of coal plant subsidies enacted under the controversial 2019 House Bill 6. According to the Ohio Consumers’ Counsel, these subsidies have cost ratepayers nearly $450 million. While SB 2 would allow for refunds if the Ohio Supreme Court determines the charges were improper, the bill limits those refunds to charges collected after the court ruling, rather than retroactively returning all funds.
Concerns and Criticism
Despite widespread support, some activists and industry experts raised concerns about aspects of the bill. Environmental activist Cathy Cowan Becker objected to provisions that shorten the timeline for siting energy projects. She pointed to an Amazon data center near her Hilliard neighborhood as an example of how a fast-tracked approval process could impact communities.
“They could go to this guy who owns [the adjacent] field, offer him probably more money than he’s ever seen, buy that field, propose to put a 100-megawatt gas plant there, and that would have a 45-day approval process,” Becker warned. “And the local officials in Hilliard would have no say.”
Meanwhile, Tony Long of the Ohio Chamber of Commerce praised the bill’s three-year pricing model for rate setting but criticized its lack of incentives for smart grid programs and energy demand reduction initiatives.
The bill now moves to the Ohio House for further consideration. Supporters argue that its passage would bolster the state’s energy infrastructure while ensuring fairness for consumers. However, opponents caution that certain provisions may still need refining to balance growth with local oversight and consumer protections.
