Ohio Senate Bill SB123

Ohio 2023-2024 Regular Session

• Introduced: 5/23/23

Caption

Exempt certain entities from regulation as a public utility

Impact

If enacted, SB123 could significantly alter the landscape of utility regulations in Ohio. By exempting specific entities from being regulated as public utilities, the bill may encourage more competition in the market, particularly in relation to electric, natural gas, and water services. This change permits businesses to operate more freely when providing utility-related services, potentially leading to lower costs and improved access to services for consumers. Moreover, the bill may impact the dynamics of service delivery, as entities would have greater flexibility in establishing service points beyond traditional metering setups.

Summary

Senate Bill 123 aims to amend section 4905.02 and enact section 4933.29 of the Ohio Revised Code to exempt certain persons or entities providing utility-related services from being classified as public utilities under state regulation. The bill's primary focus is on utility-related services that are provided after the metered point of delivery, thereby seeking to streamline operations for businesses and entities involved in such services without the burden of regulatory compliance that public utilities face. This legislative move aligns with the state's efforts to enhance access to utility-related services while promoting competition.

Contention

Notably, the bill has drawn mixed reactions from various stakeholders. Supporters argue that SB123 will enhance consumer choice and foster innovation within the utility sector, as businesses will not be hindered by the same levels of regulation as traditional public utilities. Conversely, critics are concerned that the exemption could compromise essential consumer protections typically ensured by public utility regulations. There are apprehensions that weakening regulatory oversight might lead to service disparities, especially in underserved areas, ultimately affecting reliability and safety standards associated with utility delivery.