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Debate Grows Over Whether Energy Bill is a Tax or Rate Increase

Public Utilities Commission of Ohio voting
ANDY CHOW
/
STATEHOUSE NEWS BUREAU
The change is referred to as a rate change but opponents say its a tax increase.

There’s a growing debate over whether a group can put a referendum on next year's ballot that reverses the nuclear bailout bill. The dispute revolves around whether or not the increased rate on electric bills should be considered a tax increase.

A Columbus law firm sent a memo to the Secretary of State arguing that the new energy law charging electric customers up to $2.35 a month for nuclear, coal and solar subsidies, is a tax increase. Citizens can't use a referendum to challenge a tax increase.

But Ned Hill, an energy economics professor for said, if that's the case, then the has approved several tax increases over the years.

"All the other non-bypassable riders that have been larded onto your electricity bills over the past six years are also taxes and maybe legally questionable."

Hill, who wants a referendum, points out that many supporters of the bill argued against the claim that it was essentially a tax increase.

Hill himself called it a de facto tax increase in committee testimony.

Andy Chow is a general assignment state government reporter who focuses on environmental, energy, agriculture, and education-related issues. He started his journalism career as an associate producer with ABC 6/FOX 28 in Columbus before becoming a producer with WBNS 10TV.