COLUMBUS, Ohio (WCMH) – A new Ohio bill encourages utility companies to launch programs to remotely adjust participating customers’ thermostat settings and other energy use during times of peak demand.
House Bill 427, introduced by Rep. Roy Klopfenstein (R-Haviland) in late August, would establish a framework for voluntary demand response programs, which incentivize customers to reduce demand on the power grid by offering them reduced rates.
“This legislation is a crucial step in our state's comprehensive plan to ensure all Ohioans have access to reliable, affordable and readily available energy,” Klopfenstein said in a news release.
Customers who opt into a program would grant a utility company access to temporarily lessen their energy use by adjusting thermostat and water heater temperatures, along with intermittently cycling other appliances, according to the bill.
The companies would pay participants a fee on an annual or per-event basis, as approved by the Public Utilities Commission of Ohio.
The bill would require PUCO to give each program the green light by considering whether it is “cost-effective” for customers, its long-term savings to the energy grid and other factors it deems appropriate.
Customers could override power reductions at any time, but doing so could limit future participation in the program depending on the company’s rules, the legislation states.
Residents call for change after dozens of crashes at central Ohio intersectionAEP Ohio already offers a demand response program where residential customers can receive rebates if they purchase a smart thermostat and allow the company to adjust it during times of peak energy use.
Demand response programs are also currently widely available to large commercial entities in the state such as factories. The bill specifically addresses expanding these programs to residential customers and small businesses.
“Demand response programs have proven to be a vital tool for our large commercial users, and it's important that similar programs are made available to residential and small commercial users,” Klopfenstein said. “These programs will ease the strain on our energy grid and save money for all Ohioans.”
If the bill were to pass, PUCO would be required to evaluate the success of the programs within three years and make recommendations to the legislature.
The proposal comes at a time when Ohioans’ electricity bills are climbing as the rise in data centers in the state places an increased demand on the electric grid. From April to July, residents have seen their monthly bills rise by up to 44%, according to Consumer Energy Solutions.
New Capital University program addresses national social worker shortageSeveral states currently utilize residential voluntary demand response programs. In Arizona, power companies pay households to enroll in thermostat-control programs during heat waves to help utility companies avoid blackouts. Another program in California notifies customers when demand is high and then gives them a dollar per kilowatt-hour of power they save.
HB 427 awaits a committee assignment and its first hearing. According to the Ohio Legislature’s website, the bill has yet to garner co-sponsors.
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