Utility firms could gain authority over homeowners' thermostats under a suggested legislative proposal
In an effort to help homeowners and small businesses save money while improving electric grid reliability, State Representative Roy Klopfenstein (R-Haviland) has proposed House Bill 427. The bill encourages the establishment of voluntary demand response programs, which allow participating customers to temporarily adjust their energy usage during periods of high demand.
The bill is currently awaiting a committee assignment, and if passed, it would make these programs available to residential and small commercial users. However, the compensation structure for participants is not specified in the current bill. Utilities can compensate participants with either an annual payment or a per-event fee.
Residents in Lakewood, Ohio, have given mixed reactions to the proposed bill, with some expressing concerns due to constant power outages in the city. Others, like Pedja Troca, find the bill acceptable if it's voluntary. However, Mary Sweeney finds the plan one step too far.
According to Representative Klopfenstein, demand response programs are crucial for the state's comprehensive energy plan. Customers have the ability to override such actions, ensuring they maintain control over their energy usage.
The Public Utilities Commission of Ohio would review programs to ensure cost-effectiveness for customers, while the Arizona Corporation Commission is responsible for reviewing the cost-effectiveness of the customer operation incentive programs outlined in legislative lawsuit HB 427.
However, the bill does not address how the savings from the demand response programs will be distributed among all Ohioans. Additionally, it does not force customers to participate in the demand response programs, and it does not mention any penalties for utilities if they fail to meet certain standards.
The programs are expected to ease the strain on Ohio's energy grid and save money for all Ohioans. The bill aims to modernize Ohio's energy regulations and could potentially control customer thermostats through utility companies' ability to throttle energy usage during periods of high demand.
As the bill moves through the legislative process, it will be interesting to see how Ohioans react and whether the proposed demand response programs will become a reality.
