ProgressOhio

Gov. Ted Strickland signed into law a comprehensive energy bill today, providing a long-term framework that ensures all Ohioans have access to reliable and affordable electricity.

"Ohio has set the standard for other states to follow as they work to protect their citizens and their business climate from devastating rate increases,'' said Robert J. Lapp, Vice President-Government Affairs for The Timken Company and co-chair of the Ohio Coalition for Affordable Power. "The Governor and legislative leaders demonstrated courage and wisdom in addressing this complex issue.''

Alan H. McCoy, Vice President, Government and Public Relations, for AK Steel Corporation in West Chester, echoed Lapp's sentiments.

 "This new law sends a clear message across the country that Ohio is a good place in which to work and live,'' said McCoy, who also co-chaired the Coalition. "Ohio has taken the all-important first step in averting electrical rate increases that would have driven businesses to flee and caused their employees and families to suffer.''

Senate Bill 221 takes effect in 90 days.

Both Lapp and McCoy stressed that many critical decisions remain in order to fully implement the new law, and they pledged to continue to work on behalf of all consumers as the implementation phase begins.

For nearly a year, the co-chairs managed the activities of the Coalition, a diverse and ever-expanding group that formed to address concerns that Ohio residents and businesses would see sudden and severe increases in their electric bills when rate caps are lifted next year.

 Ohio was among 17 states that opted for electricity deregulation, hoping it would do to the power industry what it did for the telecommunication and airline industries: Bring consumers lower prices through increased competition. Instead, the competition never arrived and utility bills skyrocketed in other states that failed to address the problem in a timely fashion.

In Maryland, some electrical rates jumped 71 percent overnight. In Illinois, they rose 55 percent. The price hikes were devastating for electricity-intensive manufacturers such as steel and aluminum companies and their employees.

Although it began as a manufacturers' group, the Coalition, and ultimately Senate Bill 221, won the endorsement of 129 large and small businesses, interest groups, trade associations, hospitals  and labor organizations.

The new law protects consumers by giving state regulators the power to cut rates if utilities are earning excessive profits, and it requires state regulators to conduct a prudency review to ensure that utilities are only passing on appropriate costs to the ratepayers. It promotes accountability and transparency by requiring all side deals to be open to the public.

Utilities benefit by getting guaranteed cost recovery if they build expensive new power plants, upgrade existing plants or must comply with new environmental regulations.