On May 15, 2025, Governor Mike DeWine signed House Bill 15 (HB 15) into law, ushering in the most significant overhaul of Ohio’s energy policy in decades. Taking effect August 14, 2025, the bipartisan legislation aims to modernize the state’s electric utility regulation, incentivize energy generation, and strengthen consumer protections—all while positioning Ohio as a leader in competitive energy markets.

Significant Changes to Utility Practices and Subsidies

HB 15 eliminates several controversial practices and subsidies that have shaped Ohio’s energy landscape for years:

• Electric Security Plans (ESPs) are ending. Utilities can no longer use ESPs to bypass full rate cases and add costly riders to customer bills, a move expected to increase transparency and accountability.
• Repeals OVEC Subsidies: The bill rescinds subsidies for the Ohio Valley Electric Corporation, a remnant of the scandal-tainted House Bill 6, which is expected to save Ohioans an estimated $500 million by 2030.
• Stops Coal Plant Bailouts: Customer-funded bailouts for coal power plants—including two located in Indiana—are now prohibited.
• Ends Solar Generation Fund Collections: While new collections cease, existing agreements with qualifying solar projects will be honored.

Stronger Consumer Protection and Transparency

To ensure fairness and affordability for ratepayers, HB 15 introduces several new consumer safeguards:

• Mandatory Rate Cases: Utilities must file comprehensive rate cases every three years, commencing on or after December 31, 2029.
• Refund Mechanism: If the Ohio Supreme Court finds rates to be unreasonable or improper, customers are eligible for refunds.
• Market Rate Offers (MROs): All Standard Service Offers must now be market-based, making it easier for consumers to compare and shop for energy.
• Limits on Utility Bidding: Utilities are barred from bidding in wholesale markets using assets funded by distribution customers.
• Multi-Year Rate Plans: An annual true-up process ensures that rates reflect actual costs, preventing overcharges.

Incentives for Energy Generation and Grid Modernization

Addressing Ohio’s growing energy needs, HB 15 introduces incentives to spur new generation and grid upgrades:

• Lower TPP Tax Rates: The tangible personal property (TPP) tax on new generation equipment drops from 25% to 7%, and on transmission, distribution, and pipeline infrastructure from 88% to 25% starting in 2027.
• Priority Investment Areas: Tax exemptions will encourage the development of brownfields and former coal mines.
• Behind-the-Meter Generation: Large facilities, such as data centers, can now build their power plants, increasing local generation options.
• Advanced Transmission Technologies: The bill promotes innovations to extract greater capacity from Ohio’s existing transmission grid.

Support for Schools and Energy Efficiency

Ohio’s schools stand to benefit from targeted provisions in HB 15:

• School Energy Loan Fund: A new fund managed by the Ohio Facilities Construction Commission will provide low-interest loans for energy conservation and solar installations.
• $40 Million Efficiency/Solar Program: Schools can access dedicated funding to improve energy efficiency and adopt solar technology.

Streamlined Regulatory Processes

To accelerate energy development and infrastructure upgrades:

• Regulatory “Shot Clocks”: The Public Utilities Commission of Ohio (PUCO) must complete reports within set deadlines.
• Faster Siting Decisions: The Ohio Power Siting Board is now required to decide on all applications within 150 days.
• Grid Heat Maps: Utilities must publish maps showing available transmission capacity, which aids developers and policymakers.

Embracing a Market-Based Energy Future

HB 15 marks a decisive shift toward competitive energy markets:

• Risk Shift: Financial risk moves away from captive ratepayers, fostering a more competitive environment that attracts investment.
• Business-Friendly Climate: The reforms signal that Ohio is “open for business” for energy developers and investors.
• Model for Other States: The bill’s market-based approach could serve as a template for states seeking to strike a balance between investment, reliability, and consumer protection.

Looking Ahead

House Bill 15 marks a turning point in Ohio’s energy policy, shifting beyond the legacy of scandal to a future focused on reliability, affordability, and transparency. With broad bipartisan support, the legislation is designed to meet Ohio’s rising energy demands—primarily as the state attracts energy-intensive industries such as data centers and advanced manufacturing—while protecting consumers and ensuring long-term economic competitiveness.