Ohio House Bill HB444

Ohio 2023-2024 Regular Session

• Introduced: 3/7/24

Caption

Prohibit utilities from recovering political expenditure costs

Impact

The bill introduces sections to the Ohio Revised Code that effectively prevent public utilities from charging their customers for political activities. If utilities do charge customers in violation of this prohibition, they are obliged to refund those charges with interest. Furthermore, the Public Utilities Commission is mandated to oversee compliance through annual expenditure reports submitted by the utilities outlining all political expenditures incurred in the previous year, thus establishing a mechanism for transparency and regulatory oversight.

Summary

House Bill 444 (HB444) aims to prohibit certain public utilities from recovering costs associated with political expenditures from their customers. It specifically affects electric and gas companies, defining political expenditures to include contributions to political candidates, lobbying expenses, and contributions to trade associations. By restricting the ability of utilities to pass on these costs to customers, the bill seeks to promote transparency and accountability in political financing tied to utility operations.

Contention

Notably, discussions around HB444 may reveal contention surrounding the balance between utility revenue needs and the ethical implications of political spending by public utilities. Proponents argue that the bill is a necessary step to protect consumers from indirect financing of political activities they may not support. However, opponents might argue that utilities require some level of political engagement to effectively advocate for their operational needs and that limiting their ability to recover these costs may inadvertently hurt their financial viability, potentially affecting service rates for all customers.