Reps. McNally, Rader Call for Increase Consumer Protection, Transparency in Public Utility Rates

COLUMBUS – State Reps. Lauren McNally (D-Youngstown) and Tristan Rader (D-Lakewood) Wednesday provided sponsor testimony in the House Energy Committee on House Bill (HB) 467, a bill banning public utilities from rate recovery for political expenditures, requiring greater political expenditure reporting, and fining utilities for violations. It is clear Ohio’s current regulatory framework has not worked in preventing previous violations which amounted to millions in illicit contributions. This bill’s goal is to change that, to be a guardrail and protect consumers from unnecessary riders and tariffs on their utility bills.

“Ratepayers should not have higher bills to fund their utility company’s political expenditures. HB 6 highlighted that utilities’ political spending goes unchecked. Public utilities should only use ratepayer funding to provide utilities to their ratepayers. I know my family and other Ohio families don’t expect to be charged fees for a business’s politicking or business executives enriching themselves through backroom deals. Yet this is exactly what we, as lawmakers, are allowing to take place in Ohio in the utility space and why we have found ourselves embroiled in one of the biggest scandals to ever take place...Deterrence and transparency are key, and HB 467 clearly defines what constitutes political expenditures while requiring increased penalties and reporting,” said Rep. McNally.

“Ohioans pay their utility bills to keep the lights on, not to fund corporate lobbying, trade associations, or political campaigns” said Rep. Rader. “When utilities are making record-breaking profits, it’s clear they can fund their political and lobbying activities themselves. There is no justification for passing these costs on to customers.”

HB 467 will prevent public utilities from engaging in politics with taxpayer money. It consists of three basic parts:

1.    Rules: Ban utilities from lobbying, donating to political groups and non-profits, public relations campaigns with ratepayer money.

2.   Disclosure: Require utilities to disclose an itemized list of their political expenditures, which will be made available to the public by PUCO.

3.   Enforcement: Any prohibited charge is refunded to customers with interest and utilities will be fined 20x the amount improperly charged.

If costs are passed on to Ohioans, HB 467 will give our state greater tools to make them whole. It builds on existing PUCO enforcement tools while supporting Ohioans struggling with their bills by directing funds to the Percentage of Income Payment Plan (PIPP) Program. This program helps low-income Ohioans pay past due utility bills. With these fines and enforcement mechanisms, Ohio can send a clear message on the cost of corruption.

HB 467 awaits further hearings in the House Energy Committee before being voted on by all members of the Ohio House of Representatives.