Bill to allow utilities control of customer’s energy usage gets hearing

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(The Center Square) – An Ohio bill getting nationwide attention to give energy companies control of a customer’s thermostat got its first hearing Wednesday.

The Ohio House Energy Committee took up Rep. Roy Klopfenstein’s, R-Haviland, plan he says will save customers and small businesses money and improve electric grid reliability.

Klopfenstein believes the voluntary program that gives utility companies the ability to temporarily adjust energy usage for individual customers or small businesses when demand is high is critical to the state’s overall energy policy.

In Wednesday’s hearing, Klopfenstein added an amendment to clarify that those not enrolled in the program cannot have energy consumption adjusted by a utility.

Klopfenstein said consumers could expect another 5% energy price increase next summer and called demand response programs one of the most effective tools for energy companies.

He testified that companies can reduce demand, rather than buy more energy. He also said the plan could increase grid reliability.

American Electric Power areas in the state and Ohio’s 24 electric cooperatives offer some type of voluntary demand response programs. Those current programs, however, were eliminated when sweeping statewide energy legislation was signed into law earlier this year.

“The reduction in energy consumption will lower costs for all Ohioans,” Klopenstein said. “It is important to clarify House Bill 427 does not create demand response programs but creates clear guardrails and safeguards. I want to emphasize, these programs are completely voluntary. If a customer does not trust their utility, they should not enroll and make the utility earn their trust.”

The opt-in program would allow energy companies to take control of thermostats and water heaters and give companies the ability to change temperatures or cycles during high-demand periods.

Customers could override the changes, and utilities would be allowed to compensate customers with an annual payment or per-event fee.

The Public Utilities Commission of Ohio would review the programs to make sure they would be cost-effective for customers.

The Center Square’s original story on the potential program was followed up with an opinion piece from Larry Behrens, an energy expert and communications director for Power the Future, an energy advocacy group that pushes for fossil fuels and nuclear energy as keys to future energy grids.

He wrote, “A new bill in Ohio would allow utilities to reach into homes and directly control customer thermostats. Supporters call it “demand management.” But the reality is clear: these programs are designed to normalize energy poverty by conditioning families to accept less comfort and less freedom in exchange for pennies on the dollar.”

He also pointed out similar programs in Colorado and Indiana left customers in difficult situations when energy companies adjusted thermostats to cut demand during hot summers.