What began with an attempt to work out a compromise electricity regulation bill with Gov. Ted Strickland instead ended with Democrats walking out of House Public Utilities Committee in protest during the wee hours of the morning.

The action drew a sharp contrast to the bipartisanship that has permeated the Statehouse for more than a year. Unless a deal is reached between Republican legislative leaders and Strickland, who last week threatened to veto the bill, uncertainty about future electricity rates across Ohio will continue.

With only the 11 Republican members in attendance, the committee at 2:18 a.m. this morning approved the 22nd version of Senate Bill 221, which provides a mixed approached to electricity regulation that includes state-approved rate plans and a defined path for utilities to enter unregulated markets.

The substitute bill was drafted behind closed doors, and the committee spent little time explaining the effect of the measure's language changes.

Strickland and GOP leaders are trying to find a new way to regulate electricity rates in Ohio before current rate caps expire at the end of 2008. Strickland has generally favored maintaining a system of regulated energy rates, while House Speaker Jon Husted, R-Kettering, favors creating unregulated, competitive markets.

Husted has argued that customers will pay the most favorable rate, whether it's regulated by the state or set through a transition into an open, competitive market. He said the transition, which for a time would blend market-based and regulated rates, will protect consumers from price spikes.

But others continue to argue that the bill will cause big price jumps, particularly for American Electric Power customers who pay some of the lowest rates among the major utility customers in Ohio.

"There is a likelihood that skyrocketing rates would occur," Strickland spokesman Keith Dailey said of the latest version of the bill.

Advocates for low-income customers and Ohio manufacturers have argued the rate-making plan doesn't provide consumers enough protection.

"This proposal tips the scales to the utilities, eliminating the balance between customers and monopolies that is necessary for our economy to prosper," said David Rinebolt, executive director of the Ohio Partners for Affordable Energy.

Strickland and House Republicans reportedly were slowly moving toward an agreement for much of the day, but apparently hit a snag in the evening.

Rep. Jennifer Garrison, a Marietta Democrat and ranking minority member of the committee, said talks fell apart when Democrats proposed adding a definition for when utilities reach excessive earnings.

"We needed to make certain that utilities were held in check and that, under this (state-approved rate) they would not have excessive earnings," she said.

"We were standing with consumers and businesses in Ohio so everybody could afford electricity next year. We had a way for the PUCO to say, ‘That's enough. You're making enough money and your earnings are excessive."

The tension snowballed when Republicans on the committee accepted the new version of the bill while Democrats were still meeting in a different room. Then later, committee Chairman Rep. John P. Hagan, R-Alliance, denied their request to meet privately to discuss newly drafted amendments.

Garrison accused the chairman of being disrespectful to minority party members. Less than a minute later, shortly before 2 a.m., all Democrats walked out of the room.

"There were a number of amendments we weren't given the opportunity to take a look at to make a good, educated vote," she said. "I did not know which amendments were coming."

Rep. Shannon Jones, R-Springboro, said many of the pro-consumer amendments were worked out during discussions with Democrats, including Garrison.

"It's disappointing they weren't here to vote for the amendments," she said.

Republicans continued approving about 23 amendments with little explanation or discussion.

Ohio Consumers' Counsel Janine Migden-Ostrander said she was disappointed that she will get only 120 days to review and fight utility-submitted rate plans. She asked that the time be increased to 275 days, but Republicans agreed to an amendment that extends the time for the second rate hearing.

"They can put a whole lot of stuff in there, so the first round could potentially take rates pretty high," she said.

Migden-Ostrander said she was pleased with an amendment allowing homeowners who use solar panels to earn credit for selling power back to a utility.

Environmental advocates said they were pleased with the bill, which includes benchmarks to ensure that utilities produce at least 25 percent of their power from renewable and advanced energy sources by 2025.

However, advocates were disappointed by an amendment that lets the PUCO reduce energy efficiency benchmarks if they can't be achieved for regulator, economic or technological reasons.

"We're hoping this is an insurance policy that will never be executed," said Jack Shaner of the Ohio Environmental Council.

The House is expected to vote on the bill today. If approved, the Senate would still need to agree with the changes.

jsiegel@dispatch.com