Updated: Ohio House Recesses Until August Without Voting On Senate Version Of Nuclear Subsidy Bill
Ohio Senate Passes Nuclear Subsidy Bill With Provision Allowing Utility To Construct Renewable Energy Generation For Customers
July 17, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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Updated, 7/18: With several members who support the bill absent, the Ohio House, lacking votes to pass the Senate version of HB 6, recessed until August 1 without taking up the Senate version of the bill
House Speaker Larry Householder said that he was one vote shy of passing the bill
Earlier (Published 7/17):
The Ohio Senate has passed HB 6, which provides subsidies to nuclear and other qualifying resources
The House still must concur with the Senate's bill, or the bill must undergo a reconciliation, for the bill to become law. As of publication time, the House has not yet addressed the Senate version, but has just reconvened
The bill does not create any nuclear purchase obligation on retail suppliers. Subsidies will be funded via nonbypassable charge. The bill does not provide for the use of any subsidized generation in default service
As passed by the Senate, the bill includes a provision stating that, "An electric distribution utility may, on
a nondiscriminatory basis and subject to approval by the public
utilities commission, enter into an agreement having a term of
three years or more with a mercantile customer or group of
mercantile customers for the purpose of constructing a customer
sited renewable energy resource in this state that will provide
the mercantile customer or group with a material portion of the
customer's or group's electricity requirements."
The Senate-passed bill further provides that, "Any direct or indirect costs, including costs for
infrastructure development or generation, associated with the
in-state customer-sited renewable energy resource shall be paid
for solely by the utility and the mercantile customer or group
of mercantile customers. At no point shall the commission
authorize the utility to collect, nor shall the utility ever
collect, any of those costs from any customer other than the
mercantile customer or group of mercantile customers."
The Senate-passed bill retains an RPS, but lowers the overall RPS each year starting in 2020 versus current law.
Additionally, the bill eliminates the solar carve-out in the RPS
The Senate-passed bill provides that if an electric distribution utility has
executed a contract before April 1, 2014, to procure renewable
energy resources and there are ongoing costs associated with
that contract that are being recovered from customers through a
bypassable charge as of September 12, 2014, that cost recovery
shall, regardless of the amendments to section 4928.64 of the
Revised Code by H.B. 6 of the 133rd general assembly, continue
on a bypassable basis through
December 31, 2032.
Furthermore, the bill reduces, for both EDCs and retail suppliers, the RPS baselines to remove load associated with any subsidies to nuclear or other facilities qualifying for a subsidy under the bill, starting in 2020
Similarly, any load associated with self-assessing mercantile customers under ORC 5727.81 (related to the excise tax) would not be included in an EDC's or retail supplier's RPS.
Self-assessing mercantile customers would not be subject to any bypassable RPS charge imposed by the EDC
The bill authorizes a nonbypassable charge for OVEC (legacy generation resource) costs.
An electric distribution utility, including all electric distribution utilities in the same holding company, shall bid all output from a legacy generation resource (OVEC) into the wholesale market and shall not use the output in supplying its Standard Service Offer provided under section 4928.142 or 4928.143 of the Revised Code