Economist Hill Testifies on Need for Utility Reg Reform

OSU economist Ned Hill testified before the House Public Utiltiies Committee this week in support of utility regulation reforms contained in HB 247 (Romanchuk, R-Mansfield). 

“The electricity markets are working in Ohio and benefiting consumers and employers, one for electricity generation and the other for capacity. There is no economic rationale for introducing subsidies into the electricity markets; they amount to nothing more than corporate welfare,” Hill said.

These subsidies are paid through non-bypassible riders on customers’ bill; those riders now exceed the cost of transmission or distribution costs for the average mercantile customer. Transmission charges are 8% of the average cost. Distribution charges are 13% of the final cost. And, PUCO approved non-bypassable charges are 14% of the bill. 1/25/2018