GOP Legislators Seek Electricity Regulation Bill

By Jim Siegel, The Columbus Dispatch, Ohio

Apr. 15–Republican legislative leaders worked into the wee hours this morning attempting to forge a new regulation plan for electricity that satisfies those who want to see competitive markets develop, while easing concerns of Gov. Ted Strickland and others that major rate increases will result.

The final marathon of negotiations followed a veto threat by Strickland, who said Friday that “the bill does not protect consumers against unwarranted and unjust rate increases.”

As the clock passed midnight, Republicans said a new bill and amendments were being drafted. It remained uncertain whether Strickland was on board with the changes.

The bill could have a major impact on American Electric Power customers, who pay some of the lowest rates among the major utility customers in Ohio. David Rinebolt, executive director of Ohio Partners for Affordable Energy, has argued that those rates could jump 70 percent over the next few years under the measure introduced last week.

House Speaker Jon Husted, R-Kettering, has argued that customers will pay the most favorable rate, whether it’s regulated by the state or set through a transition into an open, competitive market.

But Rinebolt told a House committee yesterday that the bill’s definition of “favorable” was an “ill-defined standard for pricing.”

“The standard in the bill was virtually meaningless,” he said.

Rinebolt faced a grilling from Republicans, who disagreed with his interpretations of the bill. Democrats, meanwhile, were generally in agreement.

Democrats tried to block the bill yesterday morning but failed on a party-line vote.

Strickland and legislative leaders are trying to find a new way to regulate electricity rates in Ohio before rate caps expire at the end of 2008. Strickland has generally favored maintaining a system of regulated energy rates, while Husted favors a more defined path to an unregulated, competitive market.

“We’ve been talking with legislative leaders all day, and those conversations are still ongoing,” Strickland spokesman Keith Dailey said last night. “The talks have been productive.”

Husted said late yesterday afternoon, “I believe we’re making positive progress,” but he wouldn’t discuss details. “We’re voting this bill tomorrow (Tuesday) on the floor,” he said.

The bill also attempts to usher a new wave of green power into Ohio. It requires electricity companies to meet annual benchmarks through 2025, when 25 percent of electricity generated must be produced by an even split between renewable and advanced energy.

The bill also requires utilities to improve efficiency efforts, reducing power use by 22 percent by 2025.

Dispatch reporter Mark Niquette contributed to this story.

jsiegel@dispatch.com

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