Statehouse lobbyists want lawmakers to take a fresh look at rules for "submeter" companies, spurred by concerns that the courts, regulators and local governments are taking action in ways that could be bad for business.

Lobbyists for about a half-dozen parties met last week with Rep. Bill Seitz, R-Cincinnati, to try to hash out some of their differences, according to Seitz and several others who were present.

Absent from the closed-door meeting were consumer advocates, who were not invited.

"I think all of the submetering companies are interested in getting some legislative clarity," Seitz said.

Submeter companies act as intermediaries between utilities and end users, usually working on behalf of property developers of apartments and condominiums. Some of the submeter companies charge markups on electricity and water, leading to total bills that exceed the prices that customers would pay if they received the same services from a regulated utility.

The markups would be illegal in most states.

Seitz said the meeting was suggested by a lobbyist for a submeter company concerned about the looming possibility of being subject to regulation.

In the absence of regulation by the state, consumers have taken their grievances about submeter companies to other venues. Several cases are pending before the Public Utilities Commission of Ohio, a proposed class-action lawsuit is pending in Franklin County Common Pleas Court, and there's talk of Columbus' government adopting regulations.

The PUCO has ruled that it has authority to oversee submetering, but the panel has not drafted regulations. Legislation could supersede the ruling.

Those attending Seitz's meeting represented three sides of the issue:

• Nationwide Energy Partners and American Power and Light, which are submeter companies based in central Ohio. They use a relatively new business model that relies on markups on the price of water and electricity.

• The Utility Management & Conservation Association, a national trade organization that represents competing submeter companies. The association views the markups as unethical and bad for consumers.

• American Electric Power and Duke Energy, regulated utilities with multistate footprints. They have said in filings that submeter markups are a growing problem that needs to be addressed.

"We appreciate Chairman Seitz's leadership to bring all parties to the table and begin to craft a responsible legislative approach," said Michael Gonidakis, a lobbyist who represents American Power and Light and was at the meeting.

Gary Morsches, CEO of Nationwide Energy, likewise expressed appreciation for Seitz's efforts to address the issue. "(We) will continue to work with him and other interested parties in good faith to propose solutions that protect consumers and property owners' rights and bring the benefits of innovative energy solutions to the local market."

Seitz says his starting point in the discussion is a bill that was introduced last year by Sen. Kevin Bacon, R-Minerva Park. That proposal never made it out of committee, but it was supported by the two local submeter companies. It was opposed by consumer advocates, who said it did not go far enough to protect customers.

Seitz emphasized that the Bacon plan is just a way to start a conversation that might lead to a new bill. He said he has no timetable for when, or if, additional action might be taken.

The Office of the Ohio Consumers' Counsel, the Ohio Poverty Law Center and other consumer advocates have long argued for rules on submetering and have proposals of their own.

Asked why they were not at the meeting, Seitz replied: "We thought it would complicate things to have them there, so they were not on the guest list."

Dan Doron, spokesman for the consumers' counsel, had no comment on whether the counsel's office would have liked an invitation. He said Seitz and other legislators have listened to the office's concerns about submetering.

Rep. Mike Duffey, R-Worthington, has proposed several bills on the topic and largely agrees with the approach of the consumers' counsel. He was represented at the meeting by a staff member.

"When is Ohio going to wake up and call 'shenanigans' on these (submeter) companies?" Duffey said. "When utility companies like AEP strongly agree with consumer advocates like Mike Duffey, you know there's a need for reform."

dgearino@dispatch.com

@dangearino