By Aliss Higham

Copyright newsweek

An Ohio lawmaker has introduced a proposal that would allow utility companies to temporarily limit customers’ energy use during periods of peak demand.Why It MattersState Representative Roy Klopfenstein, a Republican, introduced House Bill 427 late last month, which would establish a “voluntary demand response program” that allows participating energy customers to permit their utility company to make short-term adjustments to their power consumption.He says the bill is a way to update Ohio’s energy rules, strengthen grid reliability, and lower costs for homeowners and small businesses.What To KnowDemand response, or DR, refers to a short-term, voluntary reduction in electrical consumption by end-use customers, typically triggered when grid reliability is threatened or wholesale market prices spike, according to the U.S. Department of Energy. In exchange for reducing or committing to reduce their load, participants commonly receive a rate discount, a bill credit, or other forms of compensation.Under the bill’s terms, consumers could opt in to allow utilities to “temporarily adjust energy usage” during periods of high demand. Examples of such actions include “raising thermostat settings or cycling water heaters,” according to a press release issued on August 27.Customers would retain the ability to override any automated adjustments, and utilities could choose to reward participation on a per-event basis or with an annual payment.Similar arrangements already exist in many states and across multiple suppliers. The U.S. Department of Energy reports that there are 244 demand response programs nationwide, and that “the majority of U.S. utilities offer their commercial and industrial customers at least some kind of DR option.”If the bill passes, the Public Utilities Commission of Ohio (PUCO) would be tasked with reviewing demand response plans to confirm they are cost-effective for consumers.It follows the signing of House Bill 15, also sponsored by Klopfenstein, by Ohio’s Republican Governor Mike DeWine, which delivered numerous energy reforms aimed at encouraging the development of Ohio’s electric generation facilities.What People Are SayingOhio state Representative Roy Klopfenstein, in an August press release: “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.”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. These programs will ease the strain on our energy grid and save money for all Ohioans.”What Happens NextThe bill has been introduced but has not yet been assigned to a committee.