(Refiles to clarify advanced energy sources in paragraph 8)

By Bernard Woodall

LOS ANGELES, April 23 (Reuters) - The Ohio Senate on Wednesday passed an energy bill that calls for the state to establish a hybrid of regulated and market-based electricity rates starting in 2009 that would prevent a jump in power bills and to cut power use by 22 percent by 2025.

Had the state legislature not acted, Ohio would have allowed utilities to go fully to market-based rates at the end of 2008.

Gov. Ted Strickland, who said he will sign the bill, feared that Ohioans would have gotten sharp hikes to power bills like those in Maryland and Illinois, which respectively soared 72 and 55 percent after electricity rate limits expired.

"In some ways, this may be the most important single issue we've dealt with so far," said Strickland, who took office in January 2007.

"I think this bill is a fair and balanced approach toward protecting the consumers while putting in place an avenue for utilities going to market in a way that is phased-in with overriding public control," Strickland said in a telephone interview.

Strickland said future investments, particularly for heavy industrial projects, in Ohio were in danger without a new law, because of uncertainty over energy costs.

The 22-percent energy use decrease is to be achieved starting with a 0.3-percent in 2009 and 2 percent each year until 2025. Utilities will not have to meet those targets if costs increase by more than 3 percent as a result of trying to comply.