Ohio House Bill 15 Explained for Businesses

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

The short answer

House Bill 15 of the 136th General Assembly was signed May 15, 2025 and took effect August 14, 2025. For Ohio businesses it does five things: default (SSO) generation prices must come from competitive bidding because electric security plans (ESPs) were repealed; the OVEC coal-plant charge ended on August 14, 2025; utilities must file distribution rate cases by the end of 2029 and every three years after, decided within 360 days; mercantile customers (over 700,000 kWh a year) can use their own or third-party generation behind the meter; and small commercial customers get residential-style protections, including two notices before a fixed supplier price rolls to a variable one. It did not change who delivers your power or the PJM capacity prices driving 2026 bills.

Related pages: for the default price HB 15 now ties to auctions, see the price to compare for businesses; for businesses the law doesn't reach because they're on city or co-op power, see municipal and cooperative areas; and for community buying programs, which HB 15 left in place, see governmental aggregation for small businesses.

Timeline

Date	What happened	What it means for a business
May 15, 2025	Governor signs HB 15	—
Aug 14, 2025	Law takes effect; OVEC charge ends; ESP statute repealed; small commercial protections begin	One legacy charge gone from bills; no new ESPs
Sept 30, 2025	Renewal-notice section (R.C. 4928.102) amended by HB 96	Current notice rules in force
2026	FirstEnergy utilities (May) and AES Ohio (July 21) file three-year rate plans for 2027–2029; Duke files a rate case (March)	Delivery-rate changes queued for 2027
June 1, 2026	New SSO prices from auctions take effect	Recheck your price to compare
May 2028	AEP Ohio's ESP V ends	AEP's default service moves fully to the new competitive-bid framework
Dec 31, 2029	Deadline for every utility to file a rate case; repeats at least every three years	Predictable delivery-rate cycle

Change 1: ESPs repealed — default prices from competitive bidding

Since 2008, utilities could set default service through ESPs, which let them add special charges without a full review of revenue and expenses. HB 15 repeals the ESP statute and requires competitively bid market-rate offers instead. Existing ESPs continue until their final auction delivery period, which is why AEP Ohio's ESP V still runs June 2024–May 2028.

What it means: your price to compare will track wholesale auction results, with fewer ESP-era add-ons over time. It still resets every June 1, and it is still the benchmark for any supplier offer. The law also keeps distribution utilities out of owning generation.

Change 2: the OVEC charge ended August 14, 2025

The legacy generation rider created by 2019's HB 6 subsidized coal plants owned by the Ohio Valley Electric Corporation (OVEC). HB 15 eliminated it on the law's effective date. The Ohio Consumers' Counsel estimated Ohioans had paid nearly $509.7 million through the charge.

What it means: one charge should be gone from bills for usage after mid-August 2025. The saving is modest next to the capacity-driven generation increases of 2025–2026.

Change 3: a fixed rate-case cycle

Utilities must file a distribution rate case by December 31, 2029 and at least every three years after that. PUCO has 45 days to confirm a filing is complete, staff reports are due within 180 days, and PUCO must rule within 360 days of completeness; a utility may request temporary rates 275 days after filing. Utilities may also use a forecasted test period that sets base rates for three consecutive years, trued up annually against actual costs (R.C. 4909.15).

What it means: delivery charges will move in scheduled steps rather than through a stream of riders. Current filings show the range: AES Ohio proposes roughly 1% average annual increases for 2027–2029, Duke seeks about 3% for non-residential customers from around May 2027, and the FirstEnergy utilities filed their 2027–2029 plan in May 2026. Supplier contracts don't hedge any of this — budget for delivery separately.

Change 4: behind-the-meter generation for mercantile customers

A mercantile customer uses more than 700,000 kWh a year for nonresidential purposes or is part of a national account (R.C. 4928.01(A)(19)). HB 15 lets these customers connect a "self-power system" on their side of the meter — on property they own or control, or on adjacent property — without using the utility's distribution or transmission system. The system can be owned or operated by a third party under a lease, power purchase agreement or service contract. Utilities are barred from providing behind-the-meter generation, apart from applications filed by March 31, 2025.

What it means: large manufacturers, campuses and data-heavy sites can evaluate on-site or next-door gas, solar or storage with outside developers. You still need grid power for everything the system doesn't cover, and interconnection, standby and tax questions need expert review. Federal solar credits tightened in 2025 while storage credits continue — confirm with a tax adviser.

Change 5: renewal notices and small commercial protections

HB 15 extended Ohio's retail consumer protections (R.C. 4928.10) to small commercial customers, defined as non-residential accounts whose demand did not exceed 25 kW in the last 12 months (R.C. 4928.101). For residential and small commercial customers, a supplier must send:

Notice	Timing	Must include
First	90 to 60 days before the fixed price expires	Expiring rate, expiration date, PUCO's supplier-offer website, a pointer to the price to compare on your bill
Second	45 to 15 days before expiration	All of the above plus the first variable rate you'll be charged
Annual	Every year while on a converted variable rate	A reminder that you're on a variable rate and fixed offers exist

What it means: if your account exceeds 25 kW, these statutory notices don't apply to you. Mid-size and mercantile accounts should set their own reminders six to nine months before expiration and read contract renewal clauses closely — see fixed vs variable rates.

Other provisions and what HB 15 didn't change

HB 15 also shortened Ohio Power Siting Board review timelines, created faster reviews for projects on brownfields and former mine lands, lowered tangible personal property tax assessment rates on new generation, and closed the Solar Generation Fund. These mostly affect developers.

It did not let businesses leave their wires utility, change municipal or co-op service, set PJM capacity prices (which cleared at the cap through May 2029), restore utility efficiency rebates, or create community solar (HB 303 remains pending in the Senate). Ohio's renewable portfolio standard, set by HB 6, is 8.5% for 2026 with no requirement after 2026.

What to do now

Find every account's contract end date and note whether it is small commercial (25 kW or less) or larger.
For accounts over 25 kW, set your own renewal reminders six to nine months out.
Confirm your price to compare after each June 1 reset and compare offers against it on the same terms.
Put your utility's rate-case schedule in your budget; assume delivery changes independent of any supply contract.
If you're mercantile, get a behind-the-meter feasibility review that covers interconnection, standby charges and tax treatment.
On AEP Ohio, note that ESP V runs through May 2028; watch the filing that replaces it.

FAQ

Did HB 15 lower Ohio business electric bills?

It removed the OVEC charge and ended ESP-style add-ons going forward, but PJM capacity prices raised generation costs in 2025–2026 far more than those savings.

When does AEP Ohio's default pricing fall fully under the new rules?

AEP's current ESP runs through May 2028. After it ends, AEP's standard service offer must come from competitive bidding.

Does the fixed-to-variable notice rule protect my business?

Only if your account is small commercial — demand of 25 kW or less in the past 12 months. Larger accounts must track their own expiration dates.

Can a mercantile customer buy power from a plant next door?

HB 15 allows a self-power system on adjacent property that delivers electricity without using utility wires, including one owned by a third party. The project still needs engineering, interconnection and legal review.