Ohio Governor Mike DeWine has vetoed a bill that would have rolled back legal protections for submetered renters in the state. The bill, House Bill 173, would have reversed an Ohio Supreme Court opinion that classified submetering companies as public utilities, subject to state regulation.

Background

Submetering companies operate by paying landlords to take over electric distribution to tenants, then billing customers like a traditional utility. However, DeWine stated that the submetering industry is “fundamentally flawed” because it leaves customers without several legal protections and perks given to ratepayers of traditional gas and electric utilities.

DeWine specified three disadvantages for submetered customers: they cannot shop around for cheaper sources of gas and electricity, they cannot enroll in a utility-funded state program that allows low-income earners to pay only a percentage of their income for electricity, and they can be charged for electricity costs in common areas, making rent costs less transparent.

Reaction

The Ohio Consumers’ Counsel, a state agency that advocates for residential ratepayers, opposed the legislation and praised the veto. The bill’s sponsor, Rep. Dave Thomas, argued that the veto does not give renters any actual law protecting them and that governing by a vague Supreme Court ruling with guaranteed lawsuits is no way to regulate an industry.

The two largest known industry players in Ohio, Nationwide Energy Partners and American Power & Light, are regularly accused of price gouging their customers. The PUCO has received over 300 complaints about each company over the past five years.

Original reporting: Signal Akron — read the source article.