Federal Permitting Reform and Ohio Electricity Prices

Ohio market insight · Rates & regulation

Updated September 27, 2026Ohio Commercial Energy editorial teamHow we review content Book a free 15-min bill review

The short answer

No federal permitting reform has been enacted. The House passed the SPEED Act on December 18, 2025 (221–196), but as of late September 2026 Senate negotiators had not released bill text, and talks may slip to the post-election session. Even if a bill passes, it can't lower Ohio capacity costs before mid-2029: PJM's auctions have already set capacity prices at the cap through May 2029. The supply problem behind those prices runs mostly through PJM's interconnection process, equipment lead times and state and local siting — areas federal permitting reform touches only partly. For buyers, that means reform is a long-range factor to watch, not a reason to delay a contract.

For the capacity shortfall itself, see PJM's capacity shortfall; for the auction prices already set, see PJM capacity auction results; for how transmission costs reach your bill, see grid build-out and who pays; and for the gas prices that drive energy costs, see natural gas and Ohio power prices.

Where the legislation stands

Item	Status (late September 2026)
SPEED Act (H.R. 4776)	Passed the House December 18, 2025, 221–196. Narrows the scope of reviews under the National Environmental Policy Act (NEPA), codifies the Supreme Court's 2025 Seven County decision limiting those reviews, and bars rescinding permits for approved projects
Other House bills passed the same day	Electronic permitting (ePermit Act), Clean Water Act permitting changes (PERMIT Act), FERC as lead agency for pipeline reviews
Senate	Hearings and bipartisan negotiations through 2026; no text released as of September 23, 2026. A key sticking point is whether Democrats can get assurances that the administration won't block wind and solar projects
Outlook	Possible action in the lame-duck session after the November 2026 elections; nothing is certain

If you read earlier coverage that treated reform as likely to lower prices "by 2027," that timeline has passed.

How permitting connects to Ohio prices

Ohio businesses pay for PJM's supply-demand balance mainly through capacity (priced in annual auctions) and energy (hourly wholesale prices, set mostly by natural gas plants). New supply lowers both — eventually. What slows new supply in PJM today:

Interconnection studies. PJM's reformed queue opened its first cycle in 2026 with 811 projects totaling about 220 GW; its three study phases run into early 2028. That's a PJM and FERC process, not a NEPA one.
Fast-track programs. A 2025 Reliability Resource Initiative selected 51 projects (about 9,300 MW of accredited capacity), 90% expected online by 2030. In June 2026 FERC approved an Expedited Interconnection Track allowing up to ten large projects a year to get interconnection agreements within about ten months, through 2027.
Equipment. Turbines, transformers and switchgear have long lead times; see tariffs on grid equipment.
State and local siting. Large generating plants and high-voltage lines in Ohio are approved by the Ohio Power Siting Board, and since 2021 Senate Bill 52 has let counties restrict utility-scale wind and solar in unincorporated areas.
Federal permits, where they apply. NEPA reviews and federal permits matter for projects with a federal hook — interstate gas pipelines (which supply Ohio's gas plants), wetlands permits, federal land or federal funding. Streamlining those could shorten some timelines, particularly for pipelines and interstate transmission.

In short, federal reform addresses one of several bottlenecks, and not the tightest one for most Ohio generation.

What reform could change, and when

This section is speculative — scenarios, not forecasts.

If a broad bill passes in 2026 or 2027: effects would show up first in projects already in development, shaving months or years off federal reviews for pipelines, some transmission and projects needing federal permits. PJM's auction for the 2029/30 delivery year is scheduled for December 2026 under a price collar of roughly $175–$325/MW-day, so reform can't affect it. The earliest auctions it could plausibly influence are those for 2030/31 and later, and only through supply that actually reaches service.

If reform stalls: PJM's own interconnection changes, the backstop procurement it's running in fall 2026, and state actions continue to set the pace. Capacity prices for the next three delivery years are already known either way.

If reform passes but litigation or implementation drags: the practical effect in Ohio through 2029 is close to zero.

No credible source can tell you how many megawatts or dollars per MWh reform would deliver by a given year; treat any precise estimate with caution.

What it means for buying decisions

Contracts ending by May 2029 carry no capacity-auction risk; prices are set. Permitting news shouldn't change your timing. Focus on energy-price conditions, your capacity tag and contract terms.
Contracts crossing June 2029 include the unknown 2029/30 capacity price (known after December 2026) and later years with no collar. That's the window where supply additions — from any cause — matter.
Longer terms: if you're weighing a four- or five-year fixed price partly on the hope that supply will catch up, consider splitting volume across two contracts with different end dates instead of making a single bet. See strategic procurement and hedging strategies.
No-regret actions don't depend on Washington: lowering your capacity tag (the PLC playbook) and reviewing demand response (demand response earnings).

FAQ

Has Congress passed energy permitting reform?

No. The House passed the SPEED Act in December 2025, but the Senate had not released a bill as of late September 2026, and nothing has been signed into law.

Would permitting reform lower my Ohio electricity bill in 2027?

Not through capacity: PJM's prices are already set through May 2029. Any effect would come later and depend on new plants and lines actually being built.

What is the biggest bottleneck for new power plants in PJM?

PJM's interconnection study process, equipment lead times and state or local siting are major constraints for most projects. Federal environmental reviews matter mainly where a project needs a federal permit.

Should I wait for reform before signing a contract?

No. Capacity costs through May 2029 are fixed by completed auctions, so waiting doesn't buy relief. If you want flexibility beyond 2029, stagger contract end dates.