Ohio Gov. Mike DeWine delivers the final State of the State address of his second term at the Ohio Statehouse in Columbus on March 10, 2026. (Pool photo by Adam Cairns, Columbus Dispatch).
Gov. Mike DeWine on Wednesday vetoed a measure that would have set conditions for submetering companies in Ohio. These companies buy electricity in bulk at a lower rate and then sell it to multi-residential complexes, such as apartments or condos, at a higher residential rate.
Ohio House of Representatives Bill 173Supporters say it’s a good deal for consumers. The measure included utility shutoff protections and access to the federally funded Home Energy Assistance Program. Late bill additions required even submetering companies to charge slightly less than the typical household rate.
But critics pointed to companies’ reputations being undermined over unexplained fees and shoddy customer service. Residents of a metered complicated are not eligible for Ohio’s Percentage of Income Payment Plan and cannot choose a different energy provider like any other Ohio ratepayer.
In his veto messageDeWine gave a nod to sponsors’ efforts to protect consumers.
“However,” he added, “the subliteration model itself has fundamental flaws.”
What went wrong
“What is utility?” is at the center of the submetering debate. Ohio law states that a company “engaged in the business of providing energy” to consumers is a public utility. Submetering companies insisted that this definition did not fit their business. Instead of supplying energy to consumers, they supplied it to owners.
Ohio regulators bought this explanation. The state Supreme Court did not.
In unanimous decision in April written by the governor’s son, Judge Patrick DeWine, the court said there was “no question” that submetering companies met the statutory definition of a public utility. This is an critical distinction because, as public utilities, submetering companies would be subject to more stringent oversight by the Ohio State Public Utilities Commission.
Ohio House Bill 173 attempted to split the difference — imposing greater oversight of PUCOs than current law, but refraining from classifying submetering companies as public utilities.
The Ohio Supreme Court reverses the PUCO decision and finds that utility sellers operate in accordance with state law
This didn’t sit well with Governor DeWine.
“While this bill contains some consumer protections,” he said, “they are not as robust as those offered to Ohio utility customers.”
The governor noted the same criticism expressed by opponents and added that the court’s ruling applies only to submetering companies that buy and resell energy. Third-party companies that calculate a tenant’s energy employ and split bills can continue to operate.
The difference, DeWine said, is the business model.
“For this work, the third-party settlement company is paid by the property owner,” he wrote. “The billing company does not buy electricity at a wholesale price and sell it at a retail price.”
DeWine’s veto comes after a last-minute show of political largesse by one of Ohio’s major submetering companies.
How The case was reported by the Columbus Dispatch.earlier this month, Nationwide Energy Partners CEO Michael DeAscentis II donated $12,5000 to Republican gubernatorial candidate Vivek Ramaswamy. His running mate, Rob McColley, is currently the Senate president. DeAscentis gave another $10,000 to the chairman of the Senate Public Utilities Committee, Ohio Sen. Shane Wilkin, R-Hillsboro, and $16,615 to House Speaker Matt Huffman.
Reactions
Critics of HB 173 welcomed DeWine’s decision. Ohio Rep. Tristan Rader, D-Lakewood, called the veto “a victory for basic fairness.”
“This bill would codify a broken submetering scheme that puts middlemen between tenants and the utilities they depend on.” he said. “With the Ohio Supreme Court affirming that these companies can be treated as public utilities, HB 173 would weaken hard-won consumer protections for tenants and utility customers.
Ohio State Rep. Sean Brennan, D-Parma, said: “The issue is whether all utility consumers in Ohio are entitled to the same rights, protections and access to assistance programs.”
Ohio Democrats Call on Governor DeWine to Veto Submetering Bill
“No Ohioan should receive less consumer protection simply because a third-party company comes between a customer and a utility service they depend on,” he continued. “Creating a second class of media consumers is bad public policy, and this veto helps ensure fair treatment for every Ohioan.”
But the bill’s sponsor, Ohio Rep. David Thomas, R-Jefferson, says the veto merely maintains a broken status quo.
Despite what his veto says, renters and consumers actually gain nothing by vetoing this legislation,” Thomas said. “In fact, they lose the legal protections we put in place.”
Instead of black-and-white expectations for the industry, Thomas predicted more lawsuits and legal uncertainty as the PUCO considers how to regulate submetering companies.
“The legislator has been trying to create barriers and regulations around the industry for 15 years,” he said. “That’s the farthest we’ve ever gotten out of one chamber, let alone the governor’s office.”
Still, Thomas calmly accepted the veto and said he was ready to go back to the drawing board.
“I’ve been vetoed many times before. I think I’m the most vetoed legislator right now,” he said. “We have not given up on this policy and I don’t think we can give up on this one.”
Follow Ohio Capital Journal reporter Nick Evans on X Or on Bluesky.
