Former PUCO Chair warns HB15 limits consumer refunds in Ohio utility charges

Ohio's Senate Energy Committee convened on April 29, 2025, to address critical issues surrounding consumer protection in utility charges, particularly in light of House Bill 15 (HB 15). A significant concern raised during the meeting was the potential negative impact of HB 15 on consumer refunds related to unlawful utility charges.

The discussion highlighted a troubling history where the Public Utilities Commission of Ohio (PUCO) approved charges without adequate consumer protection, leading to substantial financial losses for Ohio residents. For instance, FirstEnergy's distribution modernization charge, which was deemed unlawful by the Ohio Supreme Court, resulted in consumers paying $456 million without the possibility of refunds. This situation exemplified what was described as "regulatory capture," where regulatory bodies prioritize utility companies' financial interests over consumer protection.

Former PUCO Chair Awesome Haack's candid remarks from 2019 were referenced, indicating awareness of the potential illegality of certain charges yet allowing them to be collected. This has left over one million FirstEnergy consumers without recourse for recovering their losses.

The committee discussed how HB 15, while intended to enhance consumer protections, could inadvertently limit refund opportunities for consumers involved in pending appeals. Specifically, if the Ohio Consumers' Counsel (OCC) wins its appeal regarding AES's stability charge, consumers could potentially receive refunds. However, the current language in HB 15 could restrict these refunds to only those collected after a court ruling, effectively locking in past injustices.

The committee was urged to reconsider the refund provisions in HB 15 to ensure that consumers retain the ability to recover funds collected unlawfully. Advocates argued that removing the refund limitation would align with the legislature's intent to protect consumers and ensure fair utility regulation.

As the committee continues to deliberate on HB 15, the implications of these discussions could significantly affect Ohio consumers' rights and financial well-being in the face of utility charges deemed unlawful. The outcome of this legislation will be closely watched as it moves forward, with the potential to reshape the landscape of utility regulation in Ohio.