HB 173: Regards entities providing behind-the-meter utility services - Ohio

As Passed by the Senate → As Enrolled · 6 edits

MODERATE

This bill updates Ohio's laws to regulate 'submetered utility service,' which is electricity resold by landlords or third parties to tenants. It defines who counts as a public utility, establishes strict rules for how these providers must bill tenants (requiring discounts and no common area fees), and mandates registration and compliance plans for properties with more than 50 units. The changes aim to protect tenants from overcharging and ensure transparency in utility billing.

Scope change

The bill expands the definition of 'public utility' to include submetered utility service providers and clarifies their regulatory status. It specifically targets properties with more than 50 dwelling units for mandatory compliance plans and registration.

DEFINITION

Added a new definition for 'submetered utility service' to include electricity resold by landlords or third parties after the utility meter, and expanded the definition of 'public utility' to include these providers.

REQUIREMENT

Requires submetered utility providers to offer tenants a discount of at least 3% compared to the standard utility rate and prohibits charging common area fees for electricity.

Mandates that providers at properties with more than 50 units file interim and full compliance plans with the Public Utilities Commission, including lease language and billing procedures.

ENFORCEMENT

Establishes specific penalties for violations, including forfeiture fees per violation, revocation of registration, and graduated fines for overcharging tenants.

ELIGIBILITY

Clarified that certain entities, like electric cooperatives and governmental aggregators, are treated as public utilities for assessment purposes, while explicitly excluding some generation facilities from submetering rules.

TECHNICAL

Added specific rules for billing electric vehicle charging stations, requiring costs to be billed directly to the user rather than included in common area charges.

As Passed by the House → As Passed by the Senate · 5 edits · Jun 10, 2026

MODERATE

The Senate version expanded the definition of 'public utility' to include railroads and specific telecommunications services, while adding new sections to regulate submetered utility providers. It introduced stricter rules for landlords and third-party providers, including mandatory registration, detailed compliance plans for large buildings, and graduated financial penalties for billing violations. The bill also added a new section to explicitly exempt electric vehicle charging costs from common area charges.

Scope change

The bill's scope expanded to include railroads and specific telecom providers under the 'public utility' definition and added new regulatory requirements for submetered utility service providers.

DEFINITION

Added railroads and specific internet/telecom services to the list of entities considered 'public utilities'.

REQUIREMENT

Created new sections requiring submetered utility providers to register, file compliance plans, and adhere to specific billing and service standards.

Prohibited landlords and providers from recovering electric vehicle charging costs through common area charges.

Added explicit requirements for landlords to disclose submetered utility terms in leases and comply with new submetering regulations.

ENFORCEMENT

Established graduated financial penalties for providers who overcharge tenants, including restitution and potential revocation of registration.

As Introduced → As Passed by the House · 6 edits · Mar 18, 2026

MODERATE

The bill was expanded to include more utility service types (such as broadband and advanced energy resources) and added new sections to regulate submetered utility services, which are services provided after the main utility meter at a customer's location. The changes also updated definitions to clarify what constitutes a public utility and established new rules for landlords and third-party providers regarding billing, safety, and registration.

Scope change

The bill's scope was broadened to cover a wider range of utility services, including broadband and advanced energy resources, and it now explicitly regulates submetered utility services for properties with multiple dwelling units.

SCOPE

Added new sections to the Revised Code specifically regulating submetered utility services, including registration requirements, billing caps, and compliance plans for providers.

DEFINITION

Expanded the definition of 'public utility' to include providers of broadband services, information services, and advanced energy resources, in addition to traditional electric, gas, and water utilities.

REQUIREMENT

Mandated that landlords and submetered utility service providers disclose utility charges in leases and provide specific billing assistance information to tenants.

ENFORCEMENT

Created new penalties and enforcement mechanisms, including the ability for the Public Utilities Commission to investigate complaints and assess fines for violations of submetering rules.

TIMELINE

Established a timeline requiring providers of submetered electricity to file interim and full compliance plans with the Public Utilities Commission based on the number of dwelling units served.

ELIGIBILITY

Clarified that certain entities, such as for-hire motor carriers operating in connection with exempt entities, are still considered public utilities for regulatory purposes.

Regards entities providing behind-the-meter utility services

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