Sherrod Brown blames HB 6 for electric bill spike. Experts say the law wasn’t the main cause – Politifact - GoGoSpoiler

Sherrod Brown blames HB 6 for electric bill spike. Experts say the law wasn’t the main cause – Politifact


Residential electricity bills are a central issue in the special election for an Ohio Senate seat.

On July 1, Democratic former Senator Sherrod Brown stated on X, "Since the passage of the corrupt, Jon Husted-backed (House Bill 6) bailout, your utility rates have gone up $663 a year." He linked to an article that used data from the Public Utilities Commission of Ohio to calculate an annual electric bill increase of $663.36 between the law’s enactment in October 2019 and January. The article attributes this increase, in part, to HB 6.

House Bill 6, passed by the Ohio legislature in 2019, is associated with a significant political corruption scandal in Ohio, involving charges of racketeering, public corruption, and bribery against eight individuals. The bill included surcharges on utility bills intended to subsidize power plants and allowed FirstEnergy to levy charges irrespective of consumer usage.

However, experts indicate that while HB 6 was a factor, it was not the primary driver of the $663 annual increase. Instead, they point to increased demand from data centers, international conflicts, and rising prices in regional power grid auctions.

HB 6’s Purpose and Husted’s Role:

HB 6 was a $1.3 billion bailout for FirstEnergy. The 2019 legislation mandated monthly surcharges on consumer utility bills to support struggling power plants. FirstEnergy reportedly spent $60 million on bribes to secure the law’s passage.

As lieutenant governor, Jon Husted advocated for HB 6. He has not been charged with any crimes and stated he had no knowledge of the bribery. His 2018 campaign received substantial financial backing from entities funded by FirstEnergy. Trial records include communications where FirstEnergy executives expressed Husted’s significant involvement in persuading Governor Mike DeWine and state lawmakers to pass the bill. DeWine later appointed Husted to fill a vacant Senate seat, which he is now running to retain.

HB 6 encompassed several provisions: a bailout for nuclear plants, guaranteed profits for utilities unrelated to consumer use, subsidies for coal plants, and a reduction in green energy mandates.

A spokesperson for Husted’s campaign argued that because the subsidies within HB 6 were repealed, the bill cannot be responsible for current rate increases. The rate increases were in effect for six years before their repeal.

The bailout for FirstEnergy’s nuclear plants initially included mandatory monthly surcharges on residential, commercial, and industrial utility bills, projected to generate $150 million annually. However, in 2021, following federal investigations, House Bill 128 repealed these surcharges before any funds were collected. HB 128 also removed the utility’s ability to guarantee revenue by raising base rates.

The coal plant subsidies, which added a monthly charge of $1.30-$1.50 for residential consumers, concluded in May 2025. Reductions to Ohio’s energy efficiency requirements and Renewable Portfolio Standards remain in effect.

Rate Changes and Driving Factors:

Brown’s $663 annual increase figure is derived from a comparison of average residential bills in October 2019 ($1,070 annually) and January ($1,734 annually). By June, the average monthly bill had risen to $155.65, or $1,867.80 annually.

Brown’s campaign cited these figures and a study indicating Ohio residents have paid $527 million due to HB 6 subsidies. However, linking the entire increase solely to HB 6 is misleading.

Dr. Noah Dormady, an expert in public policy and energy policy at Ohio State University, stated that attributing the entire $663 increase to HB 6 is "irresponsible." He cited utility companies’ pricing strategies in wholesale market auctions, the growth of data centers, and increased energy costs stemming from international conflicts as primary drivers of price hikes.

Ohio’s electricity supply is managed by PJM Interconnection, which operates a regional grid and a wholesale power market. Power producers participate in auctions to reserve future energy supply. Dormady explained that producers may intentionally limit supply to drive up bidding prices, which then translates to higher consumer rates. Supply costs constitute roughly half of monthly electricity bills. Elevated natural gas prices, influenced by geopolitical events and PJM’s focus on natural gas generation, have also contributed to higher supply rates.

Molly Bryden, a researcher at Policy Matters Ohio, identified utility companies increasing rates to offset the significant energy demands of data centers as a key factor in rising costs. Ohio utilities have sought approval from the Public Utilities Commission of Ohio to raise distribution and transmission rates, citing data center growth.

Assessment:

Brown’s claim that utility rates have increased by $663 annually since the passage of HB 6, supported by Husted, is partially accurate in its calculation of the difference between two specific bill periods. Husted was indeed a proponent of HB 6.

However, the statement misleadingly attributes the entire increase to the legislation. The substantial rise in electricity costs is primarily driven by factors such as wholesale electricity prices, the demand from data centers, and the reliance on natural gas, rather than solely being a consequence of HB 6.

Therefore, the statement is rated Half True, as it contains accurate details but omits crucial context regarding the primary causes of the rate increases.



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