Championing Affordability, Rep. Brennan Applauds Ohio Supreme Court Decision Vindicating HB 265, Marks Major Victory for Submetered Consumers

COLUMBUS – State Reps. Sean Patrick Brennan (D–Parma) and Tex Fischer (R-Boardman) today praised a unanimous Ohio Supreme Court decision affirming that submetering companies function as utilities and are subject to regulation - calling the ruling a clear vindication of House Bill (HB) 265 and an important step forward in protecting utility affordability for Ohio families. The Court ruled that the Public Utilities Commission of Ohio (PUCO) has the authority to regulate third-party companies that resell electricity to tenants, concluding that these entities operate as electric suppliers and must follow the same rules as traditional utilities.

“This decision vindicates everything HB 265 set out to accomplish,” said Rep. Brennan. “The Ohio Supreme Court has confirmed that these companies are utilities in every meaningful sense - and now it is firmly within the PUCO’s authority to regulate them as such. This is a huge victory for Ohio’s submetered consumers, who will no longer be treated like second-class citizens and will be afforded all of the same protections and rights of any other consumer when it comes to essential services. At a time when utility costs are already high across Ohio, this ruling is especially important - it will help root out unfair billing and lower electric bills for working families.” 

Submetering companies have long operated in a legal gray area - purchasing utilities in bulk and reselling them to tenants while setting rates, issuing bills, and disconnecting service without the oversight required of regulated utilities. The Court’s ruling makes clear that such practices fall under PUCO jurisdiction. 

“Since I started work on this issue last year, I have heard countless stories from Ohioans about unfair and unclear billing, excessive fees, and a lack of transparency from their service providers. Today, the Ohio Supreme Court heard their voices and granted the PUCO regulatory authority over submetering companies,” said Rep. Fischer. “My top priority has always been fairness and consumer protection, and this ruling is a critical step towards accomplishing that goal. When people raise concerns and their elected officials act, real change can happen.”

The ruling is expected to significantly curb the unchecked growth of submetering practices by ensuring companies cannot continue operating outside the state’s regulatory framework. By placing oversight squarely in the hands of the PUCO, the decision will protect untold thousands of current submetered residents—as well as future consumers who might otherwise have been placed into these arrangements—from being taken advantage of by unregulated utility resellers. 

HB 265 was introduced to close the loophole that allowed submetering companies to avoid regulation by formally defining them as public utilities under Ohio law. While the Court’s decision achieves that core objective, the legislation helped elevate the issue and accelerate action. 

“This is about fairness, accountability, and restoring basic consumer protections,” added Rep. Brennan. “No Ohioan should lose their rights simply because of how their utilities are delivered. Today’s decision ensures that won’t happen - not just for those impacted today, but for thousands more in the future.” 

The representatives noted that they will continue working with the PUCO and stakeholders to ensure the ruling is implemented effectively and that Ohio consumers receive the full protections they deserve.