House Energy Committee hears bill to bring submetering companies under PUCO oversight

The House Energy Committee held a first hearing on House Bill 265, a bipartisan measure that would classify companies that resell electricity, gas or water inside multi‑tenant properties as public utilities and subject them to regulation by the Public Utilities Commission of Ohio (PUCO), sponsors said.

Sponsor Representative Brennan said the bill is intended to close a regulatory gap that allows some submetering companies to “walk, talk, and act like public utilities, but they're not regulated as such.” He told the committee these companies buy utility service in bulk from traditional utilities and resell it to tenants at rates and under billing practices that, he said, lack oversight.

“The bill will define submetering entities as public utilities under Ohio law and bring them under PUCO jurisdiction,” Brennan said. He said regulated status would require companies to justify rates, provide timely billing, follow established disconnection procedures and make customers eligible for consumer assistance programs such as PIPP and HEAP.

Representative Fisher, a joint sponsor, described the proposal as consistent with the committee’s goals of affordability and competitive markets. Fisher said the measure is not intended to eliminate submetering but to “level the playing field” so entities that “look[] like a utility, act[] like [a] utility, and charge[] like [a] utility” are held to the same standards.

Sponsors cited outside statements and media reporting as part of the rationale. Brennan referenced comments by a former PUCO commissioner and an academic, and said Ohio Supreme Court Justice Patrick DeWine has noted the issue merits legislative attention. He also told the committee that the competitive energy market has produced about $37,000,000,000 in consumer savings since 2011, a figure he used to argue for broader access to competitive suppliers.

Members asked questions about the proposal’s effect on tenant billing and costs. Representative Veil said she was concerned regulation could increase prices for some residents and asked how many complaints sponsors had received from tenants. Brennan said committee members and sponsors have received “a lot of feedback” and media reports describing inflated bills, particularly in Central Ohio, and said the bill seeks transparency and accountability rather than eliminating the practice.

Representative Brader asked how this approach differs from prior legislation (referenced in committee as House Bill 173). Brennan said HB 173 would create a separate regulatory framework for submetering, whereas HB 265 would fold those entities into the existing public‑utility regulatory system.

No vote was taken at the hearing. The chair closed the item by noting the first hearing had concluded and the bill will proceed through the committee process for further vetting.