An effort by Ohio lawmakers to regulate utility middlemen legitimizes a flawed system and fails to protect consumers, Gov. Mike DeWine said June 24.
DeWine vetoed House Bill 173, which would have established some consumer protections for renters who pay utilities to third parties, a concept called submetering. Opponents said the Legislature didn’t go far enough, turning renters into second-class utility citizens.
DeWine agreed, saying the bill would limit consumer choice and hurt Ohioans who need financial assistance to pay for utilities.
“I commend the Legislature on the work done on this bill,” DeWine wrote in his veto message. “They included provisions to protect consumers. However, the submetering model itself is fundamentally flawed.”
Ohio law allows owners of apartment complexes, condominiums and mobile home parks to bill tenants for electricity, water and other utilities. Some owners contract with third-party companies, such as Columbus-based Nationwide Energy Partners or American Power and Light, to set prices, bill customers and disconnect tenants.
Critics of submetering say the lack of oversight leads to price gouging and unscrupulous practices.
In April, the Ohio Supreme Court ruled that these submetering companies must be treated like utilities. That means customers must have access to price shopping and heat assistance as well as consumer protections.
In response to that decision, Ohio lawmakers crafted a law that detailed some consumer protections while scaling back others.
The bill would have required submetering companies to charge at least 3% less than competing utilities for electricity and other services. They would also need to follow state rules about disconnecting customers and accept payments from the federally funded Home Energy Assistance Program.
“This bill is the needed reform Ohioans have wanted for nearly two decades to protect consumers and the free market,” Rep. David Thomas, R-Jefferson, said in a news release. “After years of frustration and the inability for our renters to get the protections needed, the House has acted.”
On the other hand, the bill prevented submetered consumers from shopping around for a competitive electric supplier and excluded them from a program that caps utility prices for lower-income Ohioans.
“The practical effect is simple: families living in apartments and condominiums would become second-class utility consumers under Ohio law,” Ohio Consumers’ Counsel Maureen Willis wrote to DeWine.
Days before the bill passed, Nationwide Energy Partners CEO Michael DeAscentis II donated more than $10,000 to campaigns for Republican gubernatorial candidate Vivek Ramaswamy and his running mate, Ohio Senate President Rob McColley; Ohio House Speaker Matt Huffman; and Sen. Shane Wilkin, who leads the public utilities committee, according to campaign finance records.
State government reporter Jessie Balmert can be reached at jbalmert@gannett.com or @jbalmert on X.
This article originally appeared on The Columbus Dispatch: DeWine says bill to regulate ‘flawed’ utility model hurts consumers
Reporting by Jessie Balmert and Haley BeMiller, Columbus Dispatch / The Columbus Dispatch
USA TODAY Network via Reuters Connect
By Jessie Balmert and Haley BeMiller, Columbus Dispatch | USA TODAY Network
