Smith Testifies on Legislation to Expand Utility Reforms, Protect Consumers

Today, state Senator Kent Smith (D-Euclid) gave sponsor testimony on Senate Bill 245 and Senate Bill 246, legislation to reform how public utilities are regulated in Ohio and implement safeguards to protect consumers.

“The Ohio General Assembly has a responsibility to police itself, protect customers, and rein in abuses from Ohio’s investor-owned utilities,” said Smith. “Utility customers should not be forced to pay for political activity with which they may not agree. Five years after the largest bribery and corruption scandal in Ohio’s history, there has been no legislation enacted that would prevent Ohio’s utilities from engaging in that behavior again. This legislation would prevent another House Bill 6 scandal from occurring, and allow us to join six other states in banning this practice.”

S.B. 245 would ensure that ratepayers are not burdened by the costs of public utilities' political expenditures and require public utilities to disclose their political spending. S.B. 246 would expand the number of Ohio households eligible for protections against utility shutoffs to households that have a child under age five or person over age 65; an individual with a disability, illness, or pregnancy; and individuals with an income below 200% of the federal poverty level.

“Research has clearly shown that utility shutoffs can have disastrous consequences for our most vulnerable populations,” said Smith. “This bill seeks to protect them by prohibiting utility shutoffs while establishing payment plans at a lower cost for those who need them.”

According to the Public Utilities Commission of Ohio (PUCO), from June 2022 to May 2023, there were nearly 281,000 disconnections throughout the state. Ohio also ranked 33 among states with the highest energy burden, with low-income households in every county spending over 6% of their income on energy costs, with some counties reaching as high as 14%.

S.B. 245 and S.B. 246 await further hearings in the Senate Public Utilities Committee.