PUCO seeks regulatory authority over submetering companies to protect consumers

The Public Utilities Commission of Ohio (PUCO) is seeking regulatory authority over submetering companies across the state that charge customers unreasonably high rates for the resale and redistribution of utility services.

When landlords, condominium associations or other entities purchase utility services from a regulated public utility and resell the services to tenants or other customers, they are participating in a practice called submetering.

PUCO sets rate thresholds submetering companies can charge recipients in order to protect consumers from unreasonably high service fees. The PUCO is charged with supervising public utilities within their jurisdiction and prescribes rules or orders necessary to protect consumers.

When presented with complaint cases brought forth by customer of submetering companies, the commission said it will apply a test to determine whether the company was acting as a public utility. If the submetering company is charging more than an approved percentage threshold above the bill of a similarly situated default service customer, the commission will presume that the entity is acting as a public utility under PUCO jurisdiction.

The PUCO is seeking comments regarding the percentage threshold where a submetering company or similar entity would be presumed to be acting as a public utility. The PUCO said stakeholders should submit comments by Jan. 13, 2017.