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Legislative Issues Legislative Issues

Submetering Legislation (House Bill energy efficiency standards are mandated, the Agency
The 132nd Ohio General Assembly considered bills affecting electric, natural gas, telephone, and 249, Senate Bill 157) recommends that legislation include a limit on the amount
water utility consumers. The Agency represented consumers before the Ohio General Assembly utilities can charge their customers for energy efficiency.
through testimony and by acting as a resource for the legislature on important consumer issues. Since 2013, there have been numerous Ohio House and
Senate bills introduced on the subject of the reselling H.B. 114 also includes a provision that could hurt the
Electric Legislation power agreement in 2003. Since 2003, the electricity (submetering) of public utility service to consumers. neediest Ohioans. H.B. 114 contains language that would
from the OVEC plants has been sold into competitive Submetering has become a problem for residential alter the allocation of the federal Low-Income Home
Subsidies for Nuclear Power Plants markets. In 2011, the OVEC owners voluntarily consumers, with higher charges and/or less consumer Energy Assistance Program (HEAP). The existing program
(House Bill 178, House Bill 381, extended the term of this contract through 2040. Just protection than service directly available from a can provide low-income Ohioans with funds for bill
Senate Bill 128) six years after agreeing to the extension, the OVEC public utility. Submeterers are currently purchasing payment assistance and weatherization assistance. But
owners are now asking Ohioans to subsidize these and reselling electricity and water to residents of H.B. 114 would allow relatively more of the HEAP funding
In 2017, FirstEnergy lobbied in the Ohio General uneconomic plants. Increases in the abundance of apartments and condominiums. The PUCO created to be used for low-income weatherization and relatively
Assembly for the introduction of several bills that natural gas have left OVEC’s plants uneconomic. some regulations but much more consumer protection less of the funding to be used for bill payment assistance.
would require customers to subsidize its uneconomic is needed. These submetering companies act as The most recent state budget legislation already enabled
nuclear power plants. House Bill 178 and Senate Bill 128, The 1999 law deregulating Ohio power plant unregulated monopolies, which is problematic for more of the HEAP funds to be used for weatherization.
introduced in April 2017, call for the creation of credits generation was intended to bring Ohioans the benefit consumers. To date, a consumer protection law has not The Agency recommends that the best use of HEAP funds
for nuclear generation that would result in at least two of competition. Subsidies like what is proposed for been passed for submetered customers. should be for assisting the neediest Ohioans with bill
million Ohioans subsidizing nuclear power plants. A the power plants in these bills are contrary to giving payments to maintain or prevent disconnection of vital
third similar bill (House Bill 381) was later introduced, in Ohioans those benefits of competition (such as lower Two bills, House Bill 249 (H.B. 249) and Senate Bill utility services that are essential for winter heating, and for
October 2017, to subsidize nuclear power plants. electric bills). OCC opposes legislation that would 157 (S.B. 157), were introduced in 2017 to regulate families’ health and safety.
require Ohioans to pay above-market rates for their submetering. H.B. 249 and S.B. 157, while similar in
These utility-backed bills would cost Ohioans hundreds electricity generation service. subject, are very different. The Agency supports H.B. Natural Gas Legislation
of millions of dollars to subsidize uneconomic power 249 for providing needed consumer protections. OCC
plants that cannot compete in the deregulated energy Legislation to Restore Competition and has opposed S.B. 157 and provided recommendations Natural Gas Utility Subsidy Charge
market that the Ohio General Assembly established Consumer Protections (House Bill 247) that would improve the bill to protect consumers. The (Sub. House Bill 26)
in 1999. In furtherance of the General Assembly’s Agency looks forward to continued participation in
1999 vision for a competitive power plant market, the In May 2017, House Bill 247 (H.B. 247) was introduced legislative efforts to protect submetered consumers, A late addition to the Transportation budget bill
OCC will continue to recommend protecting Ohio to protect consumers from, among other things, toward the enactment of a law. increased an infrastructure development charge by
consumers from these proposed subsidies. ratemaking standards in Ohio’s 2008 energy law that 800% that Ohio gas customers pay. The language
favor electric utilities over consumers. H.B. 247 would Renewable Energy, Energy Efficiency introduced into the bill increased a charge that natural
Subsidies for OVEC Coal Power Plants eliminate the electric security plans that have enabled and Peak Demand Reduction Standards gas utilities use for infrastructure development from
(House Bill 239, Senate Bill 155) utilities to collect above-market subsidies from their (House Bill 114) $2 per year to $1.50 per month ($18 annually). OCC
customers. And the bill would further the General urged legislators to remove the subsidy-charge language
Ohio’s electric utilities have lobbied the Ohio legislature Assembly’s vision in the 1999 law for consumers to The Office of the Ohio Consumers’ Counsel participated from the bill by presenting testimony before the
to pass legislation that would allow the utility benefit from a competitive power plant market. in the legislative process regarding House Bill 114 Senate Committee on Transportation, Commerce, and
companies to charge consumers to subsidize certain (H.B. 144) that would alter the energy efficiency and Workforce. Unfortunately, the language remained in the
coal power plants owned through the Ohio Valley Also, the bill would allow for customers to receive renewable energy standards in Ohio. The Agency bill, which was signed into law in March 2017.
Electric Corporation (OVEC). To protect consumers, refunds if the Supreme Court of Ohio determines maintains that Ohioans should have affordable, quality
the Agency has testified against the legislation. that utilities have collected improper charges from utility services with the ability to control and customize Telecommunications Legislation
consumers. The bill would prohibit electric distribution their utility usage. To this end, OCC supports energy
In October 1952, OVEC was formed by utilities that companies from owning any electric generation, efficiency efforts that Ohioans make on their own without Legislation that Threatens Consumers’
provided electric service to uranium enrichment creating true corporate separation. The Agency and utility programs. OCC also supports electric utility Basic Local Telephone Service (House
facilities constructed by the Atomic Energy others testified in support of the bill and the important energy efficiency programs, whether or not government- Bill 402)
Commission. In 2000, the U.S. Department of Energy consumer protections it would provide. Hearings in the mandated, so long as they are fair and reasonably
gave notice to OVEC that it would be cancelling the Ohio House of Representatives are ongoing. priced for Ohio consumers. Regardless of whether The Office of the Ohio Consumers’ Counsel
recommended consumer protections for Ohioans

18 Office of the Ohio Consumers’ Counsel Annual Report 2017 19