Ohio ends coal plant subsidies costing ratepayers $400,000 a day

In Ohio, after years of legislative attempts, lawmakers made a significant move by voting to abolish the subsidy for two aging coal plants. This decision, finalized on a Wednesday, marks the culmination of ongoing discussions regarding the financial burdens imposed on Ohio ratepayers, who were shouldering costs estimated at nearly $400,000 daily due to these plants. The legislation, known as House Bill 15, specifically terminates the 'legacy generation rider' associated with the Ohio Valley Electric Corporation plants that have been economically unviable for years. The initiative comes as a result of the plants being intertwined with a broader energy bill implicated in the largest corruption scandal in Ohio's history. Originally part of the contentious House Bill 6 passed in 2019, the subsidy was introduced alongside a substantial bailout intended for two nuclear power plants owned by FirstEnergy Corp. This bailout was also accompanied by numerous controversies, including indictments related to bribery charges against former state officials, which ultimately led to the repeal of the nuclear subsidy in 2021. Despite the previous attempts to eliminate the coal plant subsidy being met with obstacles, the current legislative session saw unprecedented bipartisan support, culminating in a rare unanimous vote in the Ohio Senate. With a strong majority in the House following a 94-2 vote on the amended measure, this removal of financial support underscores a shift in Ohio's energy policy towards a more sustainable and economically viable footing. The advocacy for this change came not only from lawmakers but also from industry leaders who recognized the critical need to streamline energy expenditures and promote efficiency in energy consumption. Among the notable outcomes of the newly passed bill is a requirement for utilities to regularly justify their spending of ratepayer money through rate cases, which is expected to enhance accountability. Moreover, the legislation introduces a program aimed at improving energy efficiency within public schools, which could lead to reduced energy costs over time. By concluding the financial support for those obsolete coal plants, the Ohio government aims to create a more robust energy infrastructure that aligns with contemporary energy demands and paves the way for future investments in renewable energy sources and technologies.