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DEAL or NO DEAL: Ohio's Energy Mandates

Senate Bill 221 set to amend existing energy regulations by focusing on two primary areas of contention. First, how utilities set prices for consumer consumption of energy. Second, the current and future energy sources in the state of Ohio.


Then-Democratic Governor Ted Strickland initially proposed this legislation as a means of stabilizing energy prices via a state mandate and encouraging renewable energy generation.


The bill was comprised of two main components: The first would have prices set in a free-floating price environment known as “Market Rate Offer” or MROs.

The second was based on a state mandated two phased plans. There was a short-term tiered price increase through 2015 that would change over to a contract system where state utility producers would bid against each other to provide base load power over a set period time at a fixed price. This was known as the “Energy Security Plan” or ESP.


There was a short-term tiered price increase through 2015 that would change over to a contract system where state utility producers would bid against each other to provide base load power over a set period time at a fixed price. This was known as the “Energy Security Plan”


SB 221 ultimately mandates that 25% of all electricity produced and delivered to customers must be from alternative sources.


Though there was some pushback from the Republican-dominated legislature, former State Rep. and current Chancellor of the Ohio Department of Higher Education, Randy Gardner, was quoted by the Toledo Blade as saying "The strongest champion on SB 221 I think was at the time [House] Speaker Jon Husted."


Today, we are hearing numerous legislators call for an end to the energy mandates, as they are costly, unrealistic, and ignoring Ohio's current energy boom with natural gas. The question... was it a good deal? Look at our full deal or no deal below.


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