A Smarter Energy Future for Ohio
Ohio can create a stable policy environment that supports long-term economic growth.
With a growing manufacturing base, expanding data center investment, and rising electricity demand, Ohio’s economic future depends on affordable and reliable power. Major industrial facilities require constant, high-load electricity to operate efficiently, and even brief disruptions can mean millions of dollars in losses. If Ohio cannot guarantee dependable and competitively priced electricity, those investments and the jobs that come with them will go elsewhere.
As energy demand rises and costs remain a top concern, Ohio lawmakers have a clear path forward to ensure their state has affordable, reliable energy. Consistent with the ALEC model Affordable, Reliable, and Clean Energy Security Act (featured in Essential Policy Solutions for 2026), Ohio Senate Bill 294 seeks to establish clear, measurable standards for what qualifies as reasonably priced, stable, and clean energy for consumers.
Energy Policy Should Start with Affordability
Energy is the foundation of every economic decision made in Ohio. From manufacturers in Toledo to farmers across rural counties to small businesses on Main Street, affordable electricity determines whether jobs stay in Ohio or move elsewhere.
As outlined in ALEC’s recent testimony in Ohio, S.B. 294 defines “affordable energy” using practical, consumer-focused metrics. It prioritizes stable and predictable costs and requires measurable savings for households and small businesses. This is not about picking winners and losers. It is about ensuring that energy policy does not become a hidden tax on working families.
According to the latest ALEC Energy Affordability Report, Ohio ranks 21st in the nation for energy affordability. That middle-of-the-pack position should serve as a wake-up call. While Ohio remains competitive, there is significant room for improvement, especially as electricity demand rises from advanced manufacturing, data centers, and industrial growth.
At a time when inflation continues to strain household budgets, Ohio lawmakers have a responsibility to ensure that energy mandates do not drive up costs or undermine economic competitiveness.
Reliability Is Not Optional
Recent grid emergencies across the country have demonstrated what happens when reliability is treated as an afterthought. Electricity must be available on demand, especially during extreme weather events.
S.B. 294 establishes measurable reliability standards, including a minimum 50% capacity factor, dispatchable generation, and the ability to ramp up or down within one hour. These are not arbitrary thresholds. They reflect the operational realities of keeping the lights on.
Dispatchable sources such as natural gas, coal, and nuclear power are capable of responding to demand spikes and stabilizing the grid when intermittent sources fall short. Reliable baseload power protects hospitals, schools, factories, and homes from blackouts.
Reliability is not anti-renewable. In fact, a stable grid is what makes the integration of renewable resources possible. Without firm generation backing up intermittent sources, the entire system becomes vulnerable.
Clean Energy Means Meeting Real Environmental Standards
The proposed bill defines “clean energy” as any source that meets federal air quality standards. This includes natural gas and nuclear energy, both of which have played significant roles in reducing emissions in the United States over the past two decades.
If an energy source complies with federal environmental standards, it should not be excluded from the state’s definition of clean energy for political reasons.
By recognizing nuclear and natural gas as clean and reliable components of the energy mix, Ohio can continue reducing emissions while maintaining affordability and grid stability.
Energy Security Is National Security
This bill also emphasizes domestic production and infrastructure security. In an increasingly complex geopolitical environment, relying on foreign supply chains for critical energy infrastructure presents real risks.
Policies that strengthen American production, protect grid infrastructure, and reduce dependence on adversarial nations enhance both state and national security. Ohio’s homes and factories should be powered by energy produced in the United States, under U.S. environmental and labor standards.
Louisiana Is Already Benefiting
Ohio would not be the first state to adopt this balanced approach. Under the leadership of Representative Jacob Landry, Louisiana enacted legislation modeled after the same Affordable, Reliable, and Clean Energy Security framework.
Rather than chasing mandates that could destabilize the grid or raise costs, Louisiana chose a practical path that protects consumers and promotes economic growth.
A Balanced Framework
This bill establishes performance-based standards that apply equally across generation types when determining what qualifies as affordable and reliable for state policy purposes.
Energy markets should reward performance. If a source can meet affordability and reliability benchmarks, it can compete. If it cannot, policymakers should be cautious about mandating its expansion at the expense of consumers.
The policy provides clarity for investors, utilities, regulators, and consumers. By codifying common sense definitions of affordability, reliability, and clean energy, Ohio can create a stable policy environment that supports long-term economic growth.