Gov. Ted Strickland said yesterday that he would veto the new GOP-crafted electricity-regulation bill, arguing that it would threaten jobs and expose consumers to "unwarranted and unjust rate increases."

Strickland was joined by several others across the political spectrum, including advocates for the poor, manufacturers and electricity marketers who found that the more they read and digested the 68-page bill, the less they liked it.

"These changes would result in huge price increases that would undermine all businesses, especially electricity-intensive companies that are among Ohio's largest employers," Eric Burkland, president of the Ohio Manufacturers' Association, said in a release.

Lynn Olman, chairman of the Alliance for Real Energy Options, a coalition of companies that market electric service, said that under the bill, customers -- including those of American Electric Power in central and southern Ohio -- are "going to see rates increase substantially."

"If you look at the current rate that consumers are paying with AEP, it's below market rate," said the former chairman of the House Public Utilities Committee. "What's going to happen when they file their (rate plans) is you're going to see the rates come up closer to market, and there are going to be additional charges added to that price."

Ohio Consumers' Counsel Janine L. Migden-Ostrander, who on Thursday said the bill offered "significant and positive changes that would benefit residential consumers," was less upbeat yesterday, saying she would be offering changes to the utilities committee on Monday.

Making significant changes to an electricity regulation bill that Strickland introduced and the Senate passed unanimously, House Speaker Jon Husted said his plan benefits consumers because they would pay the least-expensive option, whether it's regulated rates or an open, competitive market.

The Kettering Republican responded to yesterday's criticism with a statement: "We produced a bill that meets the policy goals the governor originally outlined. We are continuing to work to refine the bill and are taking feedback from all parties. We will send the governor a bill that is dramatically better than current law. We hope he will choose to sign it."

Lawmakers and Strickland are working to find new regulations for the electricity industry before the end of 2009, when the current regulated system expires.

Brandishing a rarely used veto threat, Strickland said the revised bill would "threaten our ability to both keep and create jobs in Ohio." Among the concerns he named in a release:

• It does not protect consumers against unjust rate increases and lacks a complete framework for determining rate increases.

• It allows unfettered access for FirstEnergy to go to market immediately, and other utilities to go to market in 2013, exposing businesses and consumers to the risk of skyrocketing electricity prices.

• It prohibits publicly disclosed special contracts between utilities and businesses, but it allows "side deals," which are secret.

Both House and Senate Democrats joined Strickland in offering sharp criticism of the plan. Rep. Steve Driehaus, D-Cincinnati, was angered by the sudden speed with which the measure was moving. The new bill was released at 5 p.m. Thursday, amendments were due by 5 p.m. yesterday, a committee vote was scheduled for Monday and the full House could vote Tuesday.

"We're not going to have any hearings as to the content of the bill," he said. "Doesn't that strike you as a little odd?"

Strickland did say he was fine with the advanced energy portions of the bill, which would set annual benchmarks starting in 2009 to ensure that by 2025, 25 percent of electricity supplied in Ohio comes from an even split between renewable and advanced energy sources.

A number of Senate Republicans have said they want some kind of green energy cost cap, so customers aren't slammed with rate hikes as companies work to meet their benchmarks.

Sen. Robert L. Schuler, R-Cincinnati, the Senate GOP's point person on electricity, said that while he has concerns about issues including green energy costs and special contracts, "I think it's all workable."

Schuler said he thinks the bill would prevent rates from increasing as much as they would if the current system expires, and it balances constitutional concerns raised by FirstEnergy attorneys.

GOP leaders are expected to continue working on the plan through the weekend.

jsiegel@dispatch.com