Ohio House Democrats Demand Immediate Relief on Energy Costs for Ohio Families

COLUMBUS - Ohio House Minority Leader Dani Isaacsohn (D-Cincinnati), Assistant Minority Whip Desiree Tims (D-Dayton), and Representative Tristan Rader (D-Lakewood) today unveiled legislation aimed at lowering rising energy costs for Ohio families and bringing much-needed relief to household budgets across the state. The Ohio House Democrats legislation would:

• Freeze utility rate increases from the Public Utilities Commission of Ohio for 12 months.
• Provide immediate relief to Ohioans through a $150 direct payment energy dividend for 5 million Ohioan ratepayers funded by a severance tax on oil and gas extraction.

We are in an affordability crisis, and it is time for the legislature to step up and do something about it. Ohioans have seen their gas bills increase 84% in the last 3 years. Electric bills are up as much as 60%, averaging between $130-180 each month. At a time of record profits by energy companies and federal mismanagement through PJM, Ohioans need action now.

The Ohio House Democrats' proposal includes a 7% severance tax on the market value of oil and natural gas extracted from our state. If that rate was in place last year, we would have generated $665M in revenue. Other states, like Texas (7.5%), Oklahoma (7%), and Kansas (8%) have a similar severance tax already, and in fact, Ohio's Republican Governor, John Kasich, proposed a 6.5% severance tax in 2015. The Republican Senate Ways and Means Chairman also introduced a similar tax. This is a common sense, bipartisan approach to make sure Ohioans benefit from the profits made from Ohio resources. This increase in revenue will cover a $150 annual payment, credited directly to Ohioans' utility bills.

The time is now for legislators to address one of the biggest drivers of Ohio's affordability crisis: rising utility bills that continue to strain working families, seniors, and small businesses.

"Ohioans are seeing their energy prices go through the roof because for twenty years, policymakers at the Statehouse have ignored them to focus on increasing corporate profits. That has to end today. That's why we're pursuing these policies that would bring costs down immediately and recognize the situation Ohioans are in and give them a chance long-term to benefit from our services," said Minority Leader Dani Isaacsohn. "Ohioans are getting a raw deal from PUCO and PJM while politicians in Columbus aren't doing anything to address those needs. It is time we passed bills that would make Ohio affordable for Ohioans."

Assistant Minority Whip Desiree Tims said the proposal reflects House Democrats' focus on the real pressures Ohioans are facing at the kitchen table.

"Families went without heat and are going to go without cooling this summer. Families making energy decisions based on costs is outrageous. We need a twelve-month freeze to address this issue. But right now, we need an emergency response to address this emergency issue," said Assistant Minority Whip Desiree Tims. "Paying for energy should not be what prevents working people from enjoying the life they've worked hard to build. Electric bills are one more burden on parents, workers, and older Ohioans already trying to keep up with the high cost of living. This legislation is about providing urgent relief and advocating for the people who power this state every single day."

Representative Tristan Rader emphasized that lowering energy costs is not only an economic issue, but a quality-of-life issue.

"Powerful companies have been exploiting Ohioans for generations-it's time that we demand that end. Ohioans deserve to benefit from Ohio's richness of natural resources," said Rep. Tristan Rader. " Skyrocketing energy costs make corporations record-breaking profits while everyday Ohioans struggle to make ends meet. Ohioans deserve policies that put people first."

Ohio House Democrats said the proposal is part of their broader effort to make Ohio the most affordable, family-friendly state in the Midwest by lowering costs, strengthening household stability, and ensuring the economy works for everyday people.

You can view the press conference here.

EDITOR'S NOTE: A one-pager information sheet on the proposed legislation is attached here. Additionally, a photo from the press conference is attached to this press release. Courtesy: Ohio House Democrats.