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12/03/2007

OSA Endorses Substitute Senate Bill 221, Ohio's Electricity Restructuring Plan

Contact:

Jamie Butts

Communications Director

614-476-3100

jbutts@soyohio.org

FOR IMMEDIATE RELEASE: December 3, 2007

OSA Endorses Substitute Senate Bill 221, Ohio's Electricity

Restructuring Plan

Columbus, OH The Ohio Soybean Association (OSA) has announced its endorsement of Substitute Senate Bill (SB) 221, Ohio's Electricity Restructuring Plan. This bill encompasses the Senate Energy and Public Utilities Committee's proposed changes to Governor Ted Strickland's comprehensive energy bill.

"Substitute SB 221 is designed to ensure that Ohio consumers have access to reliable and reasonably priced energy, while still protecting jobs and strengthening the state's economy," said Mark Watkins, OSA President. "OSA endorsed this legislation because of the benefits this bill will provide to soybean farmers. Ensuring reasonable electricity rates is important to all farmers, rural residents and consumers, and we are proud to give this bill our seal of endorsement."

Key provisions of the bill include the freezing of electricity prices at its January 1, 2008 level, preventing price spikes for Ohio consumers. And beginning in 2009, utilities will only be allowed to raise generation rates if they can demonstrate that their reasonable and prudent costs of providing service have increased.

The bill also gives all consumers the right to shop competitively for generation services, giving utilities an incentive to keep their rates low and giving consumers an option if a competitive retail market develops. If a utility seeks to force market pricing on its consumers, it must then pass a rigorous review process and forego favorable rate recovery mechanisms.

The construction of new, advanced technology power plants designed to increase reliability is encouraged by allowing utilities to begin billing consumers for the costs of these facilities after they are at least 75 percent complete. Combining these advanced technology generation facilities with existing facilities helps Ohio by taking advantage of the relatively cheap existing generation, and Ohio's air quality can be better managed.

Finally, utilities must derive 25 percent of energy supplied to consumers from super-clean resources by the year 2025. And at least half of those resources must be from renewable sources. In addition to this, utilities are required to implement energy efficiency and conservation measures to reduce the future demand for electric power.

By actively managing Ohio's energy portfolio, while at the same time keeping market options available to customers, this proposal fairly balances the needs of utility shareholders and consumers.

The Ohio Soybean Association is governed by a 24-member volunteer farmer board dedicated to education and promotion, as well as to uniting producer interest through support of legislative activities beneficial to the Ohio soybean industry.

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