Greene County GOP Lunch June 9, 2009

Our redefined energy policy


Date: 
07/31/2008

Our redefined energy policy

By REP. CHRIS WIDENER

Throughout the spring, the Ohio Legislature has worked diligently to respond to the growing concern over energy prices. As a member of the House Public Utilities Committee, I have been uniquely involved in the process of redefining Ohio’s energy policy, so I am pleased to explain how the state’s new energy policy will benefit Clark, Greene, and Madison Counties.

Ohio’s new energy plan redefines four pressing energy concerns. First, we ensured energy costs would be kept reasonable for consumers and businesses. Second, the legislature and I made a commitment to advancing Ohio’s alternative and renewable energy sector. Third, energy efficiency standards were installed to secure our state’s energy future. Finally, we included energy related incentives that will allow the state to attract and retain jobs. The final product is legislation which provides Ohio with a comprehensive energy policy which will take Ohio into the future.

Global energy demands are at record highs and the cost of gas and other energy sources continues to escalate. Though we cannot immunize ourselves from this fact, we can do everything in our power to protect Ohio energy consumers from price spikes and ensure we pay the lowest rate possible on energy bills.

Senate Bill 221 takes a hybrid approach at energy pricing which looks at both the regulated and market options for consumers. Ohio consumers will receive the lowest cost option either the market or regulated price. For example, if the market price is higher than the regulated price, then consumers will save money by choosing the lower regulated price. After addressing the cost of energy, our focus moved to alternative and renewable energy.

Second, our new energy policy provides Ohioans with cleaner forms of energy, creates greener jobs, and implements conservation standards. More specifically, the legislation requires that 25% of Ohio’s electricity is generated from alternative and renewable sources by the year 2025. To ensure this standard is met, the House-passed version of the bill contains benchmarks that electric utilities will be required to meet yearly, starting in 2009 and gradually building up to 25% in 2025. These benchmarks will help to generate a strong renewable energy industry here in Ohio, creating new jobs for Ohioans.

Energy efficiency has been repeatedly cited as one of the fastest, easiest and least-cost options for helping to secure our state’s energy future. The legislation creates an energy efficiency standard, which would require utilities to meet a cumulative 22% standard by reducing usage. By requiring utilities to establish conservation plans, we will ultimately drive down the demand for energy and, in turn, drive down the cost of energy.

Finally, the energy plan additionally includes an effort to encourage businesses to stay in Ohio. The bill allows for contracts which let high end users of energy to apply to the PUCO for a special rate. This enables Ohio businesses to stay in Ohio and most importantly keep jobs here. The contracts are open to the public and transparent.

Senate Bill 221 was passed out of the Senate on October 31, 2007. Upon receiving the bill from the Senate, the House Public Utilities Committee agreed to produce a new comprehensive and bi-partisan energy policy. The committee heard more than 150 individual testimonies in 20 separate hearings. We gave this complex legislation careful consideration and passed out a thoughtful, reasonable, balanced and constitutional bill which, I am certain, will benefit the state of Ohio.

Chris Widener currently

represents Madison and parts of Clark and Greene counties in his fourth term as a member of the

Ohio House of Representatives.

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