Business, labor unite to support energy plan

Ohio customers would face a fully deregulated marketplace in 2009.

By MARC KOVAC

VINDICATOR CORRESPONDENT

COLUMBUS — The leaders of groups representing unions and manufacturers publicly endorsed Gov. Ted Strickland’s energy plan Wednesday — the same day a state Senate committee began hearings on the proposal.

Strickland called the announcement “a historic occasion,” with Ohio AFL-CIO President Joe Rugola and Ohio Manufacturers Association President Eric Burkland offering their combined support publicly.

“Some issues are too important to let our differences divide us, and electricity is one of those issues,” Burkland said, adding, “If this state does not quickly and appropriately address this issue, the businesses I represent and the workers Joe represents will suffer.”

Sen. Robert Schuler, a Republican from southwestern Ohio who is chairman of the Energy and Public Utilities Committee, is sponsoring the measure (Senate Bill 221). It received a first hearing before his committee Wednesday and is scheduled for another today.

In 1999, the state enacted legislation deregulating the electricity market. Proponents at the time believed that the move would lead to more competitive prices.

But that has not been the case in states that recently have completed the switch to a deregulated marketplace, including Illinois and Maryland.

Deregulation looms

In Ohio, rate stabilization is scheduled to end after 2008, meaning customers will face a fully deregulated marketplace in 2009 without some type of legislative action.

As a result, various Ohio officials and groups in recent months have been pushing lawmakers to act quickly to deal with the situation.

The bill being considered by the Senate includes provisions that would regulate electricity rates until a more competitive market exists and push for increased alternative and renewable energy generation.

Strickland said the legislation will ensure an adequate, reliable and affordable supply of electricity for Ohio residential and industrial consumers, will encourage improvements to transmission and distribution systems, and will place the state in a better position to support business and job growth.

Burkland and Rugola agreed that the legislation would prevent price increases seen in other states that have fully deregulated and would assist in future economic development efforts.

“The governor’s plan is designed to protect management and labor — all citizens of Ohio — by protecting all consumers from the huge price increases seen in other states that have gone to market,” Burkland said.

Other groups, including the Ohio Farm Bureau Federation, also have endorsed the plan.