Historical Journal

Bill unlocks competition in electric market

Gov. Bob Taft opened up the $11 billion electric market to competition when he signed Senate Bill 3 - Ohio's electric restructuring law in 1999. The Office of the Ohio Consumers' Counsel (OCC) worked diligently on the behalf of consumers to help create one of the most innovative pieces of legislation involving electric restructuring in the country.

Heralded as "the most consumer-friendly electric restructuring legislation" in the nation, the OCC helped ensure the new law included effective competition for those that participated in choice programs; reduced rates; and strong consumer protection standards. Specifically, the law included a 5 percent rate reduction and capped electric rates until Dec. 31, 2005, among other provisions.

When the law went into effect on Jan. 1, 2001, consumers had the opportunity to choose a new electric supplier. The law also allowed for local governments and community groups to pool together to purchase their electric service. This process, known as aggregation, accounted for the vast majority of the 600,000 residential consumers who switched electric suppliers in 2001. When the market development period ended on Dec. 31, 2005, more than $600 million in benefits was seen as a result of electric restructuring.

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