Ohio has made significant strides in recent years to enhance its economic landscape by attracting various industries, creating jobs, and securing substantial private investments. This progress has been largely driven by policies that foster an appealing investment environment, including a competitive energy market and access to vast energy resources.
However, as the tenure of Gov. Mike DeWine comes to a close, Ohio faces an important juncture. With rising electricity demand for the first time in decades, the state needs to tackle new challenges without losing the momentum gained. Families are worried about escalating electricity costs, while businesses require more power to sustain their growth.
The state’s robust workforce and energy resources, coupled with connectivity to the PJM market, offer a solid foundation to support growth. Ensuring that energy infrastructure can meet demand is the critical challenge ahead.
Ohio’s competitive wholesale power markets have played a vital role in this success, allowing efficient electricity flow and providing consumers with access to competitively priced power. The competitive model protects consumers by shifting the risks of investment from them to independent power producers. While rising electricity prices may suggest a flawed market, they are often a signal that more supply is needed.
Lawmakers have begun addressing these needs with recent legislation aimed at modernizing energy policies and removing barriers to investment. Ohio has established a reputation as a favorable location for business investment, which must be maintained as energy needs evolve.
As the state anticipates a leadership change, it faces a critical choice in its energy policy direction. To continue its success, Ohio should focus on encouraging private investment rather than reverting to models that have struggled to ensure affordability and reliability. By nurturing an environment conducive to new generation and infrastructure, Ohio can meet rising demand and sustain its attractiveness as a place to live and work.
(Todd Snitchler is the president and CEO of the Electric Power Supply Association.)
