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Ohio Faces Short-Term Energy Price Hike as New Reform Law Reshapes Power Market

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OHIO, USA — Ohioans should brace for higher power bills in the near future as the state works to overhaul its energy system under a sweeping new law. Experts say short-term costs will rise before stabilizing under reforms introduced through House Bill 15, a measure designed to reshape how energy is produced and priced across the state.

“What we see is an affordability crisis,” said Maureen Willis, director of the Office of Ohio Consumers’ Counsel. “For the short term, we’re going to be in for some high pricing.”

House Bill 15, passed earlier this year, removes the long-criticized $1.50 monthly subsidy that previously supported coal plants, introduces new requirements for rate reviews every three years, bans utilities from owning generation facilities, and adds incentives for renewable energy development. The law also strengthens consumer protections and aims to encourage more in-state energy production rather than relying heavily on imported power.

“When those power plants lose money, utility companies pass those costs on to consumers,” said Noah Dormady, an associate professor at Ohio State University who studies energy policy. He warned that Ohio’s power demand is growing faster than its supply, noting that AEP projects a 50% increase in load demand by 2030. “When you see demand increase and supply doesn’t, that’s a recipe for higher prices,” Dormady said.

AEP acknowledged those concerns in a statement, explaining that much of the increased demand stems from the rapid growth of data centers across Ohio. “We share this concern,” the company said. “As a utility in a deregulated state, AEP Ohio cannot build generation in Ohio to help balance supply and demand. We hope to see more generation built in the state to alleviate the financial burden on our customers.”

The utility added that accurate forecasting depends heavily on commitments from data center developers. Its new data center tariff, filed with the Public Utilities Commission of Ohio, requires companies to provide energy use estimates and fund formal load studies to better plan for future consumption.

Experts believe HB 15’s reforms could pay off over time by reducing dependence on out-of-state power and encouraging investment in local energy infrastructure. JP Blackwood, spokesperson for the Office of Ohio Consumers’ Counsel, said expanding energy generation in Ohio is key to keeping bills manageable long-term. “If you get more supply in Ohio, that’s going to help with bills in the long run,” he said.

Still, Blackwood cautioned consumers about shopping for alternative energy providers without research. “I’ve talked to consumers paying two or three times more than the standard rate because they signed up with someone who came to their door,” he said.

Dormady added that structural issues in the state’s energy auction system also contribute to inflated prices. “The auctions that set retail prices are one of the biggest problems,” he said, referencing his research analyzing millions of documents over a decade to understand how bidding impacts consumer rates.

While Ohio’s new energy law is expected to bring greater transparency and long-term balance to the market, experts agree that the coming years may bring financial strain for residents as the state transitions toward a more stable, self-sustaining power system.

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