Kasich signs securitization measure into law
Lead Summary
By
-
State Senators Troy Balderson (R Zanesville) and David Daniels (R Greenfield) joined Governor John Kasich on Wednesday morning to watch as House Bill 364 was signed into Ohio law.
The legislation establishes new standards for the securitization of costs associated with electric utility companies and received unanimous, bipartisan approval in both legislative chambers.
Balderson sponsored companion legislation, Senate Bill 248, and Daniels oversaw hearings on the proposal as Chairman of the Senate Energy and Public Utilities Committee.
House Bill 364, sponsored by Rep. Kristina Roegner (R Hudson), will allow electric utilities utilize securitization bonds in order to exchange any high-interest debt for low-interest debt, if granted approval to do so through the Public Utilities Commission of Ohio (PUCO).
The new approach will result in a substantial reduction to the cost of deferral, while also lowering consumers¹ monthly bills.
"Ohioans have been through so much in recent years and the last thing they need is to see their bills constantly going up," Balderson said. "Under this plan, we¹re going to give consumers some much-needed stability."
In order for the legislation to provide its desired effects, bonds will be required to maintain a AAA-credit rating.
"Built into the bill is a set of provisions to ensure that the rating is achieved," said Senator Daniels. "I can attest that members of both the Senate and House were deliberate and thoughtful throughout this process."
Prior to its passage and enactment, House Bill 364 received the support of the Ohio Consumers' Counsel, First Energy Corporation, Duke Energy, Dayton Power & Light, and American Electric Power.
Ohio is the 20th state to pass legislation allowing for the securitization of utility debt.[[In-content Ad]]
The legislation establishes new standards for the securitization of costs associated with electric utility companies and received unanimous, bipartisan approval in both legislative chambers.
Balderson sponsored companion legislation, Senate Bill 248, and Daniels oversaw hearings on the proposal as Chairman of the Senate Energy and Public Utilities Committee.
House Bill 364, sponsored by Rep. Kristina Roegner (R Hudson), will allow electric utilities utilize securitization bonds in order to exchange any high-interest debt for low-interest debt, if granted approval to do so through the Public Utilities Commission of Ohio (PUCO).
The new approach will result in a substantial reduction to the cost of deferral, while also lowering consumers¹ monthly bills.
"Ohioans have been through so much in recent years and the last thing they need is to see their bills constantly going up," Balderson said. "Under this plan, we¹re going to give consumers some much-needed stability."
In order for the legislation to provide its desired effects, bonds will be required to maintain a AAA-credit rating.
"Built into the bill is a set of provisions to ensure that the rating is achieved," said Senator Daniels. "I can attest that members of both the Senate and House were deliberate and thoughtful throughout this process."
Prior to its passage and enactment, House Bill 364 received the support of the Ohio Consumers' Counsel, First Energy Corporation, Duke Energy, Dayton Power & Light, and American Electric Power.
Ohio is the 20th state to pass legislation allowing for the securitization of utility debt.[[In-content Ad]]