Ohio Kills $146 Million Coal Plant Bailout After Years Of Forcing Ratepayers To Pay

Ohio lawmakers have voted to end the $146 million coal plant subsidy program established under House Bill 6. The bipartisan measure passed overwhelmingly in both chambers and awaits Governor DeWine’s signature. Subsidies for the aging Ohio and Indiana coal plants will cease by May 2025, saving ratepayers about $400,000 daily. The program, linked to Ohio’s largest corruption scandal, has cost residents nearly half a billion dollars since 2019. The legislation includes additional utility reforms.

Ohio lawmakers have officially ended a controversial coal plant bailout that cost state residents almost $400,000 per day. House Bill 15, which passed with overwhelming bipartisan support, terminates the “legacy generation rider” created by House Bill 6 in 2019. The Senate unanimously approved the legislation before the House passed it with a 94-2 vote.

Ohio lawmakers end costly coal plant bailout with overwhelming bipartisan support, saving residents $400,000 daily.

The bill now awaits Governor Mike DeWine‘s signature. Once signed, the subsidies will end on May 1, 2025, saving Ohioans about $80.6 million in the first half of 2025 alone. Since 2019, these bailouts have drained nearly half a billion dollars from Ohio ratepayers.

The subsidies were originally part of House Bill 6, which led to the largest corruption scandal in Ohio state history. Former House Speaker Larry Householder and former Ohio Republican Party Chair Matt Borges were sent to federal prison for their roles in the scheme.

The money went to support two unprofitable Ohio Valley Electric Corp. coal plants – one in southern Ohio and another in Indiana. These aging facilities were built in the 1950s and became economically unviable as natural gas became cheaper. Representative Casey Weinstein called the subsidies an “outrageous misuse of public funds” and described ending the bailout as a “huge win for consumers.”

Utility companies tried to extend the subsidies through committee amendments, claiming they needed an “off ramp” and warning that immediate repeal would hurt Ohio’s business reputation. However, these attempts failed, with the committee rejecting the extension by a 17-7 vote.

Beyond ending coal subsidies, HB15 contains other energy policy reforms. It requires utility distributors to appear before the Public Utilities Commission of Ohio every three years, establishes a “shot clock” to speed up regulatory decisions, and eliminates fees that utilities add to consumer bills without proper review. The bill also enables behind-the-meter generation for consumers to create energy on-site. This shift aligns with projections that renewable energy could supply up to 80% of U.S. electricity by 2050 as costs continue to decrease.

Senator Kent Smith called HB15 a “huge win for consumers scarred by the House Bill 6 scandal.” The legislation represents a shift away from subsidizing unprofitable legacy energy sources and removes a significant financial burden from Ohio families and businesses.