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Republicans to continue controversial rewrite of legislation for Ohio
By Dennis J. Willard
Beacon Journal Columbus Bureau
Published on Thursday, Apr 17, 2008
COLUMBUS: House Republicans pulled the plug on plans to push forward with a divisive and controversial rewrite of energy legislation that House Speaker Jon Husted, R-Kettering, maintains would protect consumers and businesses.
Critics, however, say the measure caters to monolithic electric utilities, particularly FirstEnergy.
After aborted attempts to bring the bill to the floor for a vote on Tuesday and then again Wednesday, Husted announced late Wednesday afternoon that lawmakers would continue to work through the week and weekend on the legislation.
''I believe we have had productive discussions with the Senate president and the governor during the past three days and I feel progress has been made,'' Husted noted in a press release.
''It is my hope that with the work we do this week, and over the weekend, that next week we can pass an energy package that protects consumers, creates jobs
and invests in a cleaner and greener energy policy for the state of Ohio.''
Karen Stivers, Husted's spokeswoman, said the House is next scheduled to be in session on Tuesday.
The bipartisan working relationship that Husted has enjoyed with Gov. Ted Strickland for the past 16 months has been tested in recent days.
Strickland has been pushing to re-regulate Ohio's $14 billion electric utility industry to avoid dramatic rate increases that are expected when agreements to stabilize prices begin expiring at the end of this year.
Last week, Husted unveiled the House version of an energy bill passed by the Ohio Senate last year, and within a day Strickland promised to veto the measure as written.
Over the weekend, Husted issued a point-by-point rebuttal of the governor.
The mood soured even more earlier this week when Republicans in the House Public Utilities Committee introduced yet another version of the bill after 3 a.m. on Tuesday, just moments before calling the roll for a vote.
Democrats on the committee, infuriated that they did not have a chance to review the changes, walked out in protest.
Husted and House Republicans were preparing to once again rewrite the bill in private without public hearings or input and offer a single omnibus amendment on the House floor at a 9 p.m. session Wednesday.
Strickland was going to hold a news conference after the vote, but Husted decided instead to postpone any movement until next week.
The tension between Husted and Strickland is carrying over into the hallways of the Statehouse.
An army of lobbyists have taken up residence in the Rotunda and outside the doors leading to the House chamber.
Both Husted and Strickland maintain their version of the legislation protects Ohio's consumers and businesses.
Strickland wants to restore more oversight authority to the Public Utilities Commission of Ohio, but most major utilities in the state, particularly FirstEnergy, are pushing for access to an open market.
Husted wants to give utilities the ability to demonstrate they can offer competitive and lower prices to consumers by going to an open, competitive market.
The governor's hybrid plan would allow utilities to set rates based on an open market model, but only after the PUCO determined a competitive retail marketplace existed.
Husted has been criticized for conceding too much to public utilities.
Strickland, who campaigned in 2006 on promises to fight powerful special interest groups at the Statehouse, said he did not want to comment on allegations that the electric utility lobby was unduly influencing the process.
Ellen Raines, a FirstEnergy spokeswoman, said criticism leveled against FirstEnergy is unfounded.
''We've participated in the process like everyone else. It's an issue that is important to our customers and our company,'' Raines said.
On Wednesday, House Republicans were moving ahead with yet another rewrite of the bill behind closed doors and without directly involving the governor or House Democrats in drafting the changes.
Phil Saken, a spokesman for the House Democrats, said his members were not sure what was going to be in the amendment.
Strickland, following a public appearance Wednesday, said he offered House Republican leaders four distinct proposals to keep rates for consumers and businesses from skyrocketing while ensuring utilities provide a fair return to investors.
The governor said he asked the leaders to support a plan to let utilities base their rates on costs, but the idea was rejected.
He then proffered three more scenarios — basing rates on just and reasonable returns, returns on equity, and finally an excessive earnings standard — but House Republicans said no to each proposal, Strickland said.
''I have gone as far as I can go,'' Strickland said.
Dennis J. Willard can be reached at 614-224-1613 or dwillard@thebeaconjournal.com.
COLUMBUS: House Republicans pulled the plug on plans to push forward with a divisive and controversial rewrite of energy legislation that House Speaker Jon Husted, R-Kettering, maintains would protect consumers and businesses.
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