Ohio Supreme Court favors tenants in energy ruling

Ohio Democrats are celebrating a decision from the Ohio Supreme Court they say protects renters from unfair energy pricing practices.The unanimous decision classifies submetering companies as utilities, meaning they are now subject to the same state regulations as traditional utility companies under the Public Utilities Commission of Ohio, or PUCO.
The ruling affirms a bipartisan bill, HB 265, in the House which would close the loophole that allowed submetering companies to operate outside the bounds of utility regulations. The ruling effectively accomplishes the mission of the bill, with its crafters cheering the attention they were able to bring to the issue.
“Since I started work on this issue last year, I have heard countless stories from Ohioans about unfair and unclear billing, excessive fees, and a lack of transparency from their service providers,” said Rep. Tex Fischer, R-Boardman. “Today, the Ohio Supreme Court heard their voices and granted the PUCO regulatory authority over submetering companies.”
Submetering companies like Nationwide Energy Partners, or NEP, have, in the past, been able to buy energy in bulk and resell it to renters with little government oversight.
“The undisputed facts demonstrate that based on contractual arrangements with landlords, NEP purchases electricity and then resells that electricity to thousands of tenants,” wrote Justice Pat DeWine in the court’s opinion. “It earns a profit based on the difference between the price it pays for electricity and the price it resells electricity. In short, NEP is in the business of supplying electricity to consumers.”
By holding NEP and other submetering operations to the same standards as utility companies, the ruling will extend the same protections property owners receive in purchasing electricity.
“This is a huge victory for Ohio’s submetered consumers, who will no longer be treated like second-class citizens and will be afforded all of the same protections and rights of any other consumer when it comes to essential services,” said Rep. Sean Patrick Brennan, D-Parma, who co-sponsored the bill. “At a time when utility costs are already high across Ohio, this ruling is especially important – it will help root out unfair billing and lower electric bills for working families.”
Other legislators have chimed in to celebrate the ruling, including representatives from the House Energy Committee.
“This decision is a long-overdue measure to protect renters from what is often described as a predatory pricing structure,” said ranking member Rep. Tristan Rader, D-Lakewood. “Today’s ruling will also guarantee additional protections that Ohioans who are serviced by regulated public utilities receive, such as disconnection protections and mandatory public comment periods on rate increases.”

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