On Tuesday, March 23, the Ohio Chamber of Commerce submitted testimony in support of House Bill 128. HB 128 is one of multiple HB 6 repeal bills that have been introduced this General Assembly, but it is the first bill to clear both chambers with the Senate’s favorable vote. This bill also encompasses the language of Senate Bill 44, which repeals the $150 million-dollar nuclear subsidy, and the language of Senate Bill 10, which removes the decoupling mechanism and the SEET amendment from HB 6.

In December, I testified in front of the Senate Energy & Public Utilities Committee urging a repeal of HB 6 in tandem with comprehensive reforms to Ohio’s energy policy that both balance a diverse portfolio of energy sources and provides for reliable, affordable sources of energy. House Bill 128 addresses some of our initial concerns surrounding the passage of HB 6 while respecting the fact there were those who acted in good faith during the process.

At the heart of the HB 6, was the $150 million a year nuclear payment that was allocated to the Davis Besse and Perry nuclear power plants. We now have a clearer picture of the financial situation and understand that the nuclear plants may be able to stay operational without the subsidy. By repealing this provision of HB 6, all customers will see a reduction in their utility bills. This would come at an opportune time because it would allow for Ohio businesses, some of whom are struggling with cash flow issues due to the economic slowdown from the COVID-19 pandemic, to save money on their utility bills.

Customers will also see a refund on their utility bills because HB 128 also removes the decoupling mechanism that was implemented in HB 6. With the removal of energy efficiency mandates, the HB 6 decoupling provision is no longer needed to recover lost revenues.

HB 128 modifies the significantly excessive earnings test (SEET) changes that were not part of HB 6 but were enacted as part of HB 166 from the 133rd General Assembly. The SEET ensures that customers receive a refund in the event an electric distribution utility’s earnings are significantly excessive. HB 128 returns the SEET to its original state, resulting in customers now realizing the protections that were promised to them with the original implementation of the SEET.

The Ohio Chamber of Commerce supports the work of the legislature on this looming, controversial issue and looks forward to Gov. DeWine’s signature.