Proposed bipartisan legislation would require regulation for submetering in Ohio

COLUMBUS, Ohio — New legislation introduced at the Ohio Statehouse would require regulation over a controversial energy billing practice.
Reps. Tex Fischer (R-Boardman) and Sean Brennan (D-Parma) introduced a bill that would require submetering companies to follow the same regulations set forth by the Public Utilities Commission of Ohio to oversee public utilities.
 
Submetering occurs when a third-party company purchases energy in bulk from a utility service and resells it. It’s common at apartment and condominium complexes, and its prevalence is growing in central Ohio, according to the legislators.
Right now, the process is unregulated, meaning residents lose out on some consumer protections like the ability to take complaints to the Public Utilities Commission and access low-income energy programs.

“The reason for this is simple: if we have third-party entities not abiding by the same regulations, not only does that put providers who are providing those regulations at a disadvantage, but it creates a system where a large group of Ohioans do not have access to that very important competitive energy market that we are so proud of in the state of Ohio,” Fischer said.

He explained customers of submetering companies do not have the opportunity to switch to another energy provider.
Brennan said the companies operate in a “legal gray area."

“This pro-consumer legislation is about leveling the playing field, protecting Ohio consumers and making sure no one profits from circumventing the rules to protect the public,” Brennan said.

The Office of the Consumers' Counsel has been fighting for regulation over submetering for at least a decade.

“If you are going to bill for an essential service, like a utility service, you have to have transparency, fair pricing and accountability. All of that is written into this bill,” said OCC President Maureen Willis.

There have been several pieces of legislation introduced over the years to address submetering, but Willis believes this is the first bipartisan attempt.

A representative for AEP attended the press conference. Now, legislators are hoping to get other public utility companies to support the legislation.