Ohio lawmakers are pushing to end coal subsidies that have cost residents nearly $680 million since 2020. The House passed Bill 15 with a 90-3 vote to stop the $440,000 daily payments to OVEC coal plants. Meanwhile, utility companies like AEP and Duke Energy oppose quick changes, arguing these plants are essential during peak demand. The bipartisan effort could save consumers $400 million through 2030 if both chambers approve matching legislation.
Ohio lawmakers are pushing to end controversial coal subsidies that have cost state residents nearly $680 million since 2020. The subsidies, established through House Bill 6, support two aging coal plants along the Ohio River Valley owned by Ohio Valley Electric Corporation (OVEC).
Ohio residents have paid nearly $680 million since 2020 to prop up aging coal plants through controversial subsidies.
These subsidies cost Ohioans about $440,000 every day through a charge called the “Legacy Generation Resource Rider” on electric bills. Most consumers pay up to $1.50 monthly for these plants. If the subsidies continue, the total cost could reach $1 billion by 2030.
The Ohio House recently passed House Bill 15 with overwhelming support in a 90-3 vote. Senate Bill 2 includes similar provisions to end these subsidies. Both bills aim to immediately stop the payments that many lawmakers now consider unnecessary.
Major utility companies like American Electric Power, Duke Energy, and AES Ohio have opposed quick changes. They argue the plants provide essential power during peak demand times. The Ohio Business Roundtable has suggested a gradual phase-out instead of an immediate end.
Critics point out that these subsidies were tied to a major public corruption scandal. They argue there’s no national security reason to maintain these subsidies, and the plants are both inefficient and harmful to the environment.
If repealed, consumers could save nearly $400 million through 2030. The situation mirrors how accountability for officials is increasingly important in energy policy decisions, as seen in previous administrations. Part of the repeal package also includes redirecting $53 million to school energy efficiency programs and creating incentives for developing on brownfield sites.
The repeal effort has gained strong bipartisan support, with lawmakers arguing that a market-based approach to energy is better for Ohio. Despite utility companies’ concerns about disrupting long-term planning, supporters say ending subsidies won’t cause significant job losses. According to Rep. Adam Holmes, the current state of Ohio’s energy legislation is in a dark period that needs reform.
For the repeal to take effect, both chambers must pass matching legislation before the governor can sign it into law. Meanwhile, Ohio families continue paying millions each month to support these aging coal plants.
