Ohio Nuclear Bill Advances From Committee, Allows Utilities To Enter Contracts With Customers For Renewable Energy Supply, Generation Development

An Ohio House committee has advanced HB 6, the nuclear subsidy bill, to a potential vote in the full House

Among the provisions of the bill reported by the committee is that an electric distribution utility may offer a customer the opportunity to purchase renewable energy services on a nondiscriminatory basis, by doing either of the following:

(A) An electric distribution utility may seek approval from the commission [PUCO] to establish a schedule or schedules applicable to residential, commercial, industrial, or other customers and provide a customer the opportunity to purchase renewable energy credits for any purpose the customer elects.

(B) An electric distribution utility, a customer, or a group of customers may seek approval of a nondiscriminatory schedule or reasonable arrangement involving the production and supply of renewable energy, including long-term renewable energy purchase agreements through which an electric distribution utility may construct, lease, finance, or operate renewable energy resources dedicated to that customer or customers.

As previously reported, the recommended substitute bill would repeal the alternative energy portfolio standards effective January 1, 2020

For existing contracts which utilities entered into for renewable energy compliance, the bill would allow any remaining costs, after liquidation, to be recovered in distribution rates.

The bill also enshrines in statute the ability of the EDCs to recover OVEC (Ohio Valley Electric Corporation) costs via nonbypassable surcharge. OVEC output shall be sold into the wholesale market and not used for default service, the bill provides

Subsidies for nuclear generation and other qualifying resources would be recovered via nonbypassable surcharge