Ohio renters are confronting sharply higher utility bills from submetering companies that purchase electricity and water from public providers and resell it to tenants.
- Tenants like Andrea Feagin have seen monthly electric charges climb to nearly $500 for a 900‑square‑foot apartment.
- Submetering firms operate in a regulatory gray area, leaving renters with fewer protections than customers of public utilities.
- State lawmakers are debating bills that would define submetering companies as utilities and give the Public Utilities Commission of Ohio (PUCO) oversight authority.
Feagin saved diligently before moving into a one‑bedroom unit in Columbus’s Brewery District, only to receive a $493.35 electric bill for the period Jan. 15‑Feb. 15 2025. The bill listed 2,206.77 kilowatt‑hours of usage—more than double the 899 kWh average monthly consumption for U.S. Households, according to the U.S. Energy Information Administration.
Her monthly statements had risen gradually from about $100 to $400 before peaking near $500, forcing her to dip into savings each month.
“I barely got by,” she said.
After a flyer urged residents to complain, Feagin joined 12 other tenants filing complaints with the Ohio Attorney General in 2025 against Nationwide Energy Partners, a submetering firm that buys power from providers such as AEP Ohio. Although the total number of attorney‑general complaints is unclear, PUCO records show at least 555 complaints were lodged last year, with Nationwide Energy Partners and American Power & Light receiving the most.
Industry voice Fred Rice, owner of Spectrum Submetering and board chair of the Utility Management and Conservation Association, warned that some firms “mark up the utilities” and charge high administrative fees not seen elsewhere, passing equipment and infrastructure costs onto tenants.
The PUCO does not consider submetering companies public utilities, meaning it lacks authority to regulate their rates, enforce consumer‑choice options, or require income‑based payment plans. Deputy Consumers’ Counsel Angela O’Brien noted that the practice has created “second‑class utility customers” and often benefits apartment owners who hold stakes in submetering firms.
Legislative proposals aim to close the gap. House Bill 265, sponsored by Rep. Tex Fischer (R) and Rep. Sean Brennan (D), would classify submetering firms as public utilities, granting PUCO full regulatory power and ensuring billing transparency. House Bill 173, led by Rep. David Thomas (R), would require registration with PUCO, create a formal complaint process, and prohibit charges above standard utility rates while stopping a full utility‑type classification.
Meanwhile, Columbus City Council enacted a local ordinance capping administrative fees at $8 per billing cycle, prohibiting excessive late fees, and mandating payment‑plan options. Violations could attract $150 daily fines, and the rule took effect 30 days after Mayor Andrew Ginther’s signature on Dec. 9.
Frequently Asked Questions
What is submetering?
Submetering companies purchase electricity, water or other utilities from public providers and then bill individual renters based on usage measured by private meters installed in each unit.
Why are Ohio renters receiving higher utility bills?
Because submetering firms operate outside PUCO regulation, they can add equipment, line and administrative costs to tenants’ bills, often resulting in charges that exceed what a comparable customer would pay directly to a public utility.
What legislative actions are being considered?
Two Ohio House bills—HB 265 and HB 173—seek to define submetering firms either as public utilities with full PUCO oversight or as regulated entities that must register, accept complaints and limit charges to standard utility rates.
How might these developments reshape the utility experience for renters in Ohio?
