In Columbus, Ohio, state lawmakers have formally voted to eliminate financial support for two outdated coal power plants that had been costing close to $400,000 each day to the state’s ratepayers. These plants, relics from the Cold War era, had been receiving subsidies through a controversial energy bill — a bill at the heart of Ohio’s largest corruption scandal to date. The termination of these subsidies is part of a broader legislative effort to modernize energy policy in the state.
The decision was encapsulated in House Bill 15, which aims to abruptly cease the “legacy generation rider” associated with the Ohio Valley Electric Corporation (OVEC) plants. Originally implemented via House Bill 6 in 2019, this assistance package had long been a topic of contention. Both Ohio legislative chambers have now passed the bill, culminating in a resounding 94-2 vote after the Senate’s rare unanimous approval.
State officials are now waiting on Governor Mike DeWine to review this revised legislation. His office is currently examining the updated bill. Among the advocates for this change, State Representative Casey Weinstein, a Democrat from Hudson, celebrated the end of what he described as a “bailout” designed to prop up one coal plant in Ohio and another in Madison, Indiana. This decision is seen as a significant win for the state’s consumers.
Weinstein emphasized in a statement the misuse of public funds, highlighting the daily fiscal waste directed toward an outdated facility in Indiana. He termed the cessation of this subsidy a pivotal victory for Ohio’s ratepayers, safeguarding their financial interests across the state.
The revised bill goes beyond cutting subsidies by mandating regular reviews from utility companies to account for their use of funds collected from ratepayers. It introduces a new energy efficiency loan program designed to reduce energy costs within public schools and confirms that customers should be reimbursed for any improper charges.
Ryan Augsburger, President of the Ohio Manufacturing Association, lauded the legislative move, stating that the removal of ineffective subsidies and the introduction of energy “heat maps” will foster greater efficiency among manufacturers. Describing Ohio as rich in natural resources and workforce capabilities, Augsburger believes this step forward will propel Ohio’s energy sector to national prominence, attracting fresh economic investments.
The OVEC subsidy had been a late addition to the original bill, which primarily aimed to allocate $1 billion to preserve two nuclear power facilities once owned by a FirstEnergy Corp. subsidiary. Initially, this payout was intended to be collected via increased electric bills through to 2030.
In a dramatic turn, the legislature retracted the nuclear power plant subsidy in 2021, following the indictment of then-House Speaker Larry Householder and four others implicated in a $60 million bribery plot backed by FirstEnergy. This scheme had effectively manipulated the legislative process to ensure the nuclear bailout’s approval.
Despite success in revoking assistance for nuclear facilities, dismantling the coal plant subsidies proved more challenging. The facilities in question, initially constructed in the 1950s to serve a government uranium enrichment site, had their contract with the U.S. Department of Energy expire in 2003. As a result, OVEC started distributing electricity to the regional power grid at a time when more economical natural gas alternatives surged in popularity.
Criticism surrounding the coal plant subsidy has grown louder, with state utility watchdogs arguing it carried a heavier burden than that linked to nuclear energy. Not only did it sustain plants producing unnecessary electricity, but it contributed to air pollution, compounding its detriment to both financial and environmental stakeholders.