AEP asks to be included in ‘submeter’ complaint
A Columbus man has a formidable new ally in his complaint against Nationwide Energy Partners, a company that resells electricity and water at apartments and condominiums.
American Electric Power has asked to become part of the case brought by Mark Whitt.
AEP, the Columbus-based utility, says it has concerns about so-called “submeter” companies such as Nationwide Energy.
“As an electric distribution utility, AEP Ohio is responsible for delivering safe and reliable power to all retail customers in its service territory, and it may not be able to ensure the safe delivery of power under certain submetering situations,” said the filing from Steven Nourse,
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AEP’s lead attorney.
Nationwide Energy, which is also based in Columbus, declined to comment.
Whitt filed his complaint in April, asking the Public Utilities Commission of Ohio to rule that Nationwide Energy is acting like a utility and should be regulated like one. He cited examples of bills from his Arena District condo. This type of complaint is much like a civil lawsuit.
He is no ordinary consumer. In his day job, Whitt is managing partner in a law firm that specializes in energy-regulatory issues.
Last month, the Office of the Ohio Consumers’ Counsel petitioned to join the case, which is currently before Ohio utility regulators. A few days later, Ohio Partners for Affordable Energy, a nonprofit advocacy group, also asked to join.
The two consumer groups said Whitt’s complaint speaks to statewide concerns about the submeter business.
The Dispatch in 2013 reported that the emerging submeterbusiness model would be illegal in all but a few states. The model most common in central Ohio charges a markup on the costs of electricity and water in apartments and condominiums, with total bills that often exceed what a customer would pay under regulated prices.
Some of the most vocal opponents of the practice are other submeter companies, which say that such markups by companies like Nationwide Energy are unethical and threaten to harm the reputation of all submeter businesses.
Nationwide Energy has asked the commission to reject Whitt’s complaint, arguing that the company is not acting as a utility and is merely the billing agent for the condo association.
AEP says this argument “strains credibility,” noting that Nationwide Energy bills “appear designed to make the customer believe that the bill originates from a full-fledged public utility, not a mere ‘agent’ of the condominium association.”
In the 2013 Dispatch report, AEP said an estimated 18,000 to 20,000 of customers in its Ohio territory were served by such submeter companies, which include Nationwide Energy and American Power and Light.
AEP officials previously have raised concerns about submeter companies but have mostly stayed out of a public debate that has included unsuccessful attempts to pass legislation. The utility now says it is asking to be part of the case because of a vital interest in the underlying policy issues and because Whitt is a consumer in AEP territory.
If the PUCO chooses not to make AEP part of the case, the utility says, the commission should launch an investigation of submeter practices and allow testimony from all interested parties.