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Lawmakers propose game-changing bill that could slash household energy costs: 'One more tool in the toolbox'

"Establish programs that save customers money, reduce strain on our electric grid, and create more capacity."

"Establish programs that save customers money, reduce strain on our electric grid, and create more capacity."

Photo Credit: iStock

An Ohio lawmaker has proposed a bill that could help lower residents' energy bills and reduce statewide consumption.

The bill, introduced by state Rep. Roy Klopfenstein, R-Haviland, would allow residential energy customers in Ohio to get a bill reduction in return for allowing their utility to scale back consumption at certain times.

As the Ohio Capital Journal reported, this is already offered to large-scale energy users, like factories, but it hasn't been available to residential customers.

If passed, consumers could opt in to a system that would allow utilities to reduce their usage at times when consumption is particularly high. This could mean raising home thermostat settings or cycling appliances like water heaters during a heat wave.

"This is one more tool in the toolbox that gives the distribution folks the ability to manage the power so those that need it the most — and you can put whatever you want in there — that they are never without power," Klopfenstein told the Capital Journal.

Customers could override any of these actions, and utilities could compensate those who opt in, with a payment either annually or for each qualifying event.

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If passed, this legislation could have a major impact on Ohioans' energy costs.

According to the Environmental Law and Policy Center, electric bills across Ohio have risen this year by about $30 per month, with another 5% increase expected next summer.

By reducing demand during peak times, the ELPC estimates this program could create between $34 million and $104 million in net savings.

"Demand Response programs are crucial to addressing skyrocketing energy costs," Nolan Rutschilling, managing director of energy policy for the Ohio Environmental Council, said in a release.

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"This legislation allows utilities and retail energy providers to establish programs that save customers money, reduce strain on our electric grid, and create more capacity."

According to the Ohio Legislative Service Commission, Ohio ranks seventh in the nation for overall energy consumption. Data from the U.S. Energy Information Administration shows that the state is in the top 10 nationally for consumption of both coal and natural gas.

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