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House Energy Committee hears bill to classify submetering firms as utilities under PUCO

June 04, 2025 | Energy and Natural Resources, House of Representatives, Committees, Legislative, Ohio


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House Energy Committee hears bill to classify submetering firms as utilities under PUCO
The House Energy Committee on a motion held a first hearing on House Bill 265, a proposal to classify companies that resell metered utility service inside multi‑tenant properties as public utilities subject to Public Utilities Commission of Ohio oversight. Representative Brennan, a sponsor, told the committee the bill would “bring them under PUCO jurisdiction” so resellers must justify rates, provide timely billing, follow established disconnection procedures and permit dispute resolution.

“‘If it looks like a utility, acts like utility, and charges like utility, it's a utility,’” Representative Brennan said, arguing the change would restore consumer protections for tenants in apartments, condominiums and campus housing. Representative Fisher, the joint sponsor, said the measure is intended to preserve competitive markets and consumer choice; he told the committee that Ohio’s competitive energy market “has saved consumers nearly $37,000,000,000 since 2011.”

The bill, as described by its sponsors, would require submetering resellers to follow the same rate‑case, billing and disconnection standards that regulated utilities follow in order to ensure billing transparency and access to low‑income assistance programs such as PIPP and HEAP. Sponsors said the measure stops short of eliminating submetering and instead aims to “level the playing field” so customers served under resale arrangements have the same consumer protections as other utility customers.

Committee members asked several clarifying questions. Representative Brader asked how HB 265 differs from House Bill 173, a prior proposal on submetering; a sponsor answered that HB 173 would create a separate regulatory framework for submetering, while HB 265 inserts existing resellers into the current PUCO regulatory structure. Representative Veil asked whether increased regulation could raise prices for individual tenants who benefit from separate metering; a sponsor replied that regulators already have a rate‑case process intended to protect consumers and that the bill aims to add transparency and accountability where providers now operate “in the shadows.”

Speakers referenced prior commentary from the Public Utilities Commission and remarks by Ohio Supreme Court Justice Patrick DeWine as part of the background for legislative action. Media coverage and constituent complaints from Central Ohio were cited by sponsors as evidence of recurring billing problems.

The committee did not take a vote on HB 265; sponsors concluded their testimony and the chair closed the first hearing. The bill will return to committee for further consideration in a subsequent session.

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