Ohio House Passes Nuclear Subsidy Bill Ending RPS, Allowing Utilities To Enter Contracts With Customers For Renewable Energy Supply, Generation Development

The Ohio House has passed HB 6, the nuclear subsidy bill.

The bill awaits action in the Senate.

As passed, HB 6 allows an electric distribution company to offer renewable energy services to customers

Specifically, the bill provides 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 (PUC) 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) Consistent with section 4905.31 of the Revised Code, 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.

The bill also ends the RPS for both utilities and retail suppliers, effective January 1, 2020

Utilities would be permitted to recover any RPS compliance costs from contracts extending beyond such date, net of liquidation and any funding from a state air quality authority to offset such costs, through 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 products would be sold into the wholesale market and shall not use the output in supplying the Standard Service Offer (default service)