Ohio bill calls for all new generation to meet affordability and reliability standards

By EPN Staff

Legislation to ensure that all new electricity generation is affordable, reliable, and clean is under consideration in the Ohio State Senate. Senate Bill 294 would require the Ohio Power Siting Board, the state agency that reviews and approves construction of power plants, electric transmission lines and gas pipelines, to approve new applications that meet that criteria. 

“The ultimate mission is to lower energy costs in the State of Ohio," Senator George Lang said. “Energy is so critical to our economy. Right now, if you look at what advanced manufacturing needs, we need to dominate in the advanced manufacturing market if we're going to succeed.”

The bill also directs the state to prioritize fuel sources produced in the United States, with the exception of nuclear material, and minimize “reliance on foreign adversary nations for critical materials or manufacturing.”

The deputy director at the American Clean Power Association Evangeline Hobbs is concerned that wind and solar would not meet the bill’s definition of “reliability.” She testified before the Senate committee that “If Senate Bill 294 were enacted, the Ohio Power Siting Board would be unable to support renewable energy projects under the bill’s restrictive definition. This would place Ohio at a disadvantage compared to other states that are embracing renewables to meet rising demand, attract investment, and strengthen grid resilience.” 

Why it matters

Electricity rates have been rising for Ohio residents because of the proliferation of data centers, the closure of coal power plants and regulatory barriers to the creation of renewable sources, according to reports. 

SB 294 aims to make energy more affordable, reliable and clean by setting the following standards for applicants:

• A “clean energy source” is a renewable resource that meets the federal renewable energy definition or a fossil fuel source that meets the national ambient air quality standards. Nuclear power is defined as a clean energy source in the bill. 
• An “affordable energy source” is one that has a stable, cost-effective and predictable cost for heating, cooling, and electricity generation. It must deliver savings comparable to energy sources specified by federal law over the last five years. The definition specifically excludes “advanced nuclear energy.”
• A “reliable energy source” is one that is dispatchable when needed and has a capacity factor of at least 50%. The capacity factor “measures a power plant’s actual generation compared to the maximum amount it could generate in a given period without interruption,” according to the US Department of Energy. 

No power plant has a capacity factor of 100%. Even high-capacity sources have to shut down to conduct repairs, perform maintenance and refuel. Intermittent sources like wind and solar have even lower capacity factors since they are impacted by weather and the time of day. 

According to the DOE, only nuclear, geothermal, biomass and natural gas have a capacity factor above 50%.

The bigger picture

Currently, Ohio generates 52% of its electricity from natural gas, 29% from coal, 15% from nuclear, 2% from renewable (wind, solar, hydro and biomass), and 1% from petroleum according to government sources. The state’s average electricity rate is slightly above the national average, but rates vary because Ohioans can pick their provider. 

There are 194 data center facilities in the state.