Prevent PUCO from approving utility rate increases for 12 months

136th Legislature (2025-2026) Introduced by Desireè Tims

Imposes a 12-month emergency moratorium stopping new public utility rate increases in Ohio for filings not yet approved, with federal-m law exceptions.

Introduced

#stategovernment #stateandlocalgovernment #utilities

Summary of HB 970 (Ohio - 136th General Assembly)

Purpose and intent

The bill seeks to enact a temporary moratorium on public utility rate increases in Ohio.

Specifically, it would prevent the Public Utilities Commission of Ohio (PUCO) from approving new applications, rates, or riders that would increase rate collections for a period of twelve months.

The bill is introduced as an emergency measure to provide immediate relief to Ohio consumers amid affordability concerns.

Key provisions

Definition of public utility: The bill adopts a definition consistent with existing Ohio law, referring to entities deemed public utilities under Revised Code sections 4905.02 and 4905.03.

12-month moratorium on rate increases:

Effective for twelve months from the section’s effective date.
PUCO may not approve any filing by a public utility that would result in higher rates or increased rider collections during this period.
The moratorium applies only to filings for requests that have not yet received final PUCO approval by the effective date.
Rates and riders already approved and in effect, or approved prior to the moratorium’s effective date, may continue to be charged and collected.

Exceptions:

The moratorium does not apply to rate or rider increases or collections required by federal law.

Emergency status:

The bill explicitly declares itself an emergency measure necessary to immediately protect ratepayers from further increases and to address affordability concerns. It would take effect immediately upon enactment.

Who/what would be affected

Affected entity: Public utilities operating under PUCO jurisdiction in Ohio.

Ratepayers: Residential, business, and other consumers who would be protected from new rate increase filings during the moratorium period.

PUCO workflows: PUCO’s review and approval processes for new rate increase filings would be paused for 12 months, for any filings not already approved as of the effective date.

Procedural and timeline considerations

Effective date and duration: The 12-month moratorium begins on the effective date of the section (the bill’s immediate effect as an emergency measure) and runs for one year.

Scope of applicability: Only applies to new filings that have not received final PUCO approval by the effective date.

Temporary nature: Creates a pause on rate increase approvals, with no changes to rates already approved or in effect before the moratorium.

Federal law exception: If a rate or rider is compelled by federal law, it is not subject to the moratorium.

Practical impact and considerations

If enacted, ratepayers would experience a temporary halt to potential rate increases during the 12-month window, potentially providing relief during an affordability crisis.

Utilities would need to manage finances without the ability to implement new rate increases for the duration, possibly affecting their revenue planning and investment decisions.

The emergency designation signals a priority to shield consumers, but it could lead to legal and administrative questions about exceptions and the handling of federally mandated charges.