The cost of inaction: Why Ohio needs energy efficiency now

As Ohio temperatures begin to rise, working families across the state are once again faced with the rising cost of energy. The average Ohio family spends more than $100 on electricity every month and the Public Utilities Commission of Ohio estimates that the average price of electricity will increase approximately 58% to 88% in the next several years.

  PJM, the agency that manages the grid for the mid-Atlantic region, is warning that Ohio is expected to face energy shortages in the coming years, which would only make matters worse for customers whose pocketbooks are already stretched thin. Utility companies will end up passing on the cost of additional energy generation to consumers, which means more natural gas plants and transmission stations paid for by Ohio working families.

If we do nothing, everyday Ohioans are going to end up paying the price.

 That’s why I’m working across the aisle with my colleague Rep. Bill Seitz, R-Cincinnati, on House Bill 79, a bipartisan plan aimed at saving Ohio’s working families money on their electric bills and reducing Ohio’s energy consumption at peak demand. Our legislation works by incentivizing Ohio utility companies to create new, voluntary energy saving programs by which they can offer their customers discounts on energy efficiency products and services.

Energy efficiency programs are designed to reduce the energy we waste on heating and cooling our homes or running electric appliances. For example, if customers have old air-conditioning units from 1999, they could save as much as 20% on their bills by replacing them with newer, more energy-efficient models. The new utility-run energy efficiency programs would offer customers discounts and rebates on appliances, lighting and weatherization services to encourage them to replace old inefficient products with newer versions that save energy. Because the most efficient appliances often cost more up front, these discounts and rebates will make the possibility of updating appliances a reality to many.

 Customers who take advantage of the discounts and rebates would benefit directly because they pay lower bills. But even the customers who never participate would benefit because efficiency programs indirectly lower their bills in both the short and long term. All Ohioans will pay lower rates when energy demand goes down, but they will also save money in the long run because the utilities companies will need to spend less money building new delivery systems they would otherwise need to carry the additional electricity.

Some Ohioans don’t trust the utilities to run good programs or pass on the cost savings — working families are all too familiar with the laundry list of fees and add-on costs that populate our monthly utility bills — that’s why HB 79 includes robust enforcement mechanisms that ensure customers save money. We made sure these new energy efficiency programs can only be implemented if the utility companies demonstrate they actually lower consumers’ bills so Ohio working families don’t end up paying more. But if you still don't want to participate in the program, you will also have the option to opt out!

 Ohio doesn’t have time to wait for the market alone to drive energy efficiency changes. We need to take proactive steps now if we are going to avert a looming energy crisis and mitigate the environmental costs of producing so much energy. That’s why this bill has earned bipartisan support from Democratic and Republican lawmakers, as well as support from environmental groups, utility companies, and consumer protection groups like the Citizens Utility Board of Ohio.

We haven’t seen this kind of broad consensus on an energy policy in over a decade. In a state legislature that has been downright hostile to environmental concerns, this is the closest we have gotten to finally righting the ship. We can’t afford to not pass HB 79.