COLUMBUS, Ohio — Governor Mike DeWine has officially vetoed Substitute House Bill 173, striking down a highly contested piece of legislation that would have dramatically altered how apartment tenants and condominium residents are billed for electricity.
The Republican governor stated that despite being framed by lawmakers as a victory for consumers, the bill lacked sufficient protections and would have officially legalized a “flawed utility model” for the first time in state history.
The decision represents a major win for the Office of the Ohio Consumers’ Counsel (OCC), which aggressively lobbied against the bill, arguing it created a second-class tier of utility rights for Ohio renters.
The Submetering Fight Explained
Submetering occurs when a property owner or a third-party middleman firm buys utility services from a public utility at a wholesale rate and then resells those services directly to individual tenants or condo residents.
The practice has been a legal battleground for over a decade. In April, the Ohio Supreme Court delivered a landmark ruling declaring that middleman companies reselling electricity for a profit are legally operating as “public utilities” and must be fully regulated by the Public Utilities Commission of Ohio (PUCO). The court ruled that consumers shouldn’t lose vital protections simply because they live in an apartment rather than a single-family home.
Substitute House Bill 173—sponsored by Republican State Rep. David Thomas—attempted to remove these profit-making middlemen from that legal classification as a public utility.
Why DeWine Issued the Veto
While Rep. Thomas argued the bill protected renters by capping electricity charges at 3% below standard utility rates and forcing companies to register with the state, Governor DeWine and consumer advocates concluded the legislation left gaping holes in oversight.
In his official veto message, DeWine highlighted several major flaws in the bill that would have negatively impacted tenants:
- No Energy Choice: Since 2001, traditional Ohio utility customers have been legally allowed to shop around for competitive electric suppliers to find the best pricing. Under HB 173, submetered renters would be locked into a single provider with zero right to choose their supplier.
- Locked Out of Financial Aid: Low-income residents under traditional utilities can utilize the state’s Percentage of Income Payment Program (PIPP) to keep their lights on. The vetoed bill would have completely blocked submetering customers from accessing this state assistance or similar payment aid.
- Paying for Shared Hallways: DeWine strongly objected to a provision in the bill that allowed submetering companies to bill individual tenants for electricity used in common areas, such as shared hallways, community rooms, and outdoor lighting. DeWine argued that renters should only pay for the power they use inside their units, and that shared costs should remain covered by published rent prices.
“Ohio consumers should not have different utility rights simply because of where they live,” said Maureen Willis, Agency Director of the OCC. “We appreciate Governor DeWine’s veto… OCC will continue advocating for equal utility consumer protections for all Ohioans.”
What Happens Now?
Traditional submetering models—where a landlord or billing firm merely passes along the exact local utility rate and charges a basic administrative fee without marking up the energy for a profit—remain completely legal and unaffected by the veto. However, companies looking to buy wholesale power and flip it to tenants for a profit will remain heavily regulated as public utilities under state law.
The bill now heads back to the General Assembly, where lawmakers must decide whether to attempt a veto override.
To override a governor’s veto in Ohio, both chambers must pass the measure again with a three-fifths majority. While the Senate originally passed the bill with a comfortable 24-9 vote (clearing the 20-vote override threshold), the House passed it 56-35. Because an override in the House requires 60 votes, supporters of the bill will have to convince at least four representatives to flip their votes to bypass DeWine’s pen.
