Reps. Rader and Brennan Applaud Governor DeWine's Veto of HB 173

COLUMBUS – State Reps. Tristan Rader (D-Lakewood) and Sean Patrick Brennan (D–Parma) today applauded Governor Mike DeWine’s veto of House Bill (HB) 173, legislation that would have weakened consumer protections for Ohioans living in sub-metered apartments and condominiums and small businesses.

Rep. Rader and Rep. Brennan previously called on Governor DeWine to veto the bill, warning that HB 173 would have moved Ohio backward after an April Ohio Supreme Court decision found that submetering companies may be treated as public utilities. This ruling and the Governor’s veto reflect Rep. Brennan’s bipartisan HB 265, which calls for regulating submetering companies as utilities.

“Rep. Brennan, the Ohio Senate Democrats, and I urged Governor DeWine to veto HB 173, and we are glad he listened,” said Rep. Rader. “This bill would have codified a broken submetering scheme that puts middlemen between tenants and the utilities they depend on. After the Ohio Supreme Court affirmed that these companies can be treated as public utilities, HB 173 would have weakened hard-won consumer protections for renters and utility customers. This veto is a victory for basic fairness..”

HB 173 dealt with submetering, a business model where third-party companies serve as go-betweens separating utility providers and tenants, often on behalf of landlords. Critics argued the bill would have legitimized that model while denying sub-metered customers important protections available to other utility customers.

In his veto message, Governor DeWine called the submetering model “fundamentally flawed” and said HB 173 would have, for the first time, legitimized and legalized that flawed model in Ohio. The governor also raised concerns that the bill would prevent sub-metered customers from participating in Percentage of Income Payment Programs (PIPP), allow companies to charge tenants for service to common areas, and weaken protections for Ohio consumers.

“I could not be happier that Governor DeWine made the right decision in vetoing HB 173,” said Rep. Brennan. “The fundamental issue has never been whether someone rents an apartment, owns a condominium, or lives in any other type of housing. The issue is whether all Ohio utility consumers are entitled to the same rights, protections, and access to assistance programs. No Ohioan should receive fewer consumer protections simply because a third-party company inserts itself between the customer and the utility service they depend on. Creating a second class of utility consumers is bad public policy, and this veto helps ensure that every Ohioan is treated fairly."

Reps. Rader and Brennan said they remain committed to ensuring all Ohio utility consumers, including those served through submetering arrangements, have access to fair billing, complaint rights, disconnection protections, assistance programs, and meaningful regulatory oversight.

“Utilities are not a luxury,” said Rep. Rader. “They are basic necessities. Whether someone owns a home, rents an apartment, or lives in a condo, they deserve fair treatment, transparent bills, and real consumer protections.”