Utility companies may gain power to manage residential thermostats under new legislative proposal
Ohio is set to modernise its energy regulations with the introduction of House Bill 427, a proposal that aims to help homeowners and small businesses save money while improving electric grid reliability. State Rep. Roy Klopfenstein (R-Haviland) has introduced the bill, which is currently awaiting a committee assignment.
The bill proposes voluntary demand response programs that allow customers to temporarily adjust their energy usage during periods of high demand. According to Rep. Klopfenstein, these programs will be made available to residential and small commercial users. However, participation in these programs will not be mandatory.
If passed, utility companies would be allowed to throttle energy usage during periods of high demand under House Bill 427. This could potentially ease the strain on the energy grid and save money for all Ohioans. Customers would have the ability to override such actions, ensuring they have control over their energy usage.
The compensation structure for participants in the demand response programs is not specified in the current version of House Bill 427. Utilities could compensate participants with either an annual payment or a per-event fee. The compensation structure for utilities that implement demand response programs under House Bill 427 is also not specified in the bill.
The Public Utilities Commission of Ohio (PUCO) would have a role in overseeing the implementation and cost-effectiveness of the demand response programs under House Bill 427. The PUCO would be responsible for reviewing the cost-effectiveness of the programs to ensure they are beneficial for both the utility companies and the consumers.
Residents in Lakewood, Ohio, have given mixed reactions to the proposed bill. While some, like Pedja Troca, are open to the bill if it's voluntary, others, such as Mary Sweeney, find the plan one step too far. Lakewood is known for experiencing constant power outages, which could potentially benefit from the implementation of the demand response programs.
House Bill 427 aims to modernise Ohio's energy regulations, making them more flexible and efficient. It remains to be seen how the bill will progress through the Ohio legislature and whether it will bring about the promised benefits for Ohio's residents and businesses.
