Press Release

August 27, 2025

Ohio Lawmakers Introduce Bill to Lower Energy Costs through Voluntary Demand Response Programs

Good energy policy manages both supply and demand.

COLUMBUS – In response to rising electricity prices in PJM and the need to reduce demand for electricity as Ohio prepares for new data centers, Representative Roy Klopfenstein (R-Haviland) introduced House Bill 427, a bill to create voluntary demand response programs for residential and small commercial customers in Ohio. The bill is part of Ohio’s strategy to meet higher demand for electricity and help lower costs for customers.

Demand response programs allow utilities to temporarily reduce electricity use at peak times – for example, adjusting a customer’s smart thermostat on the hottest summer days when the grid is stressed. Under demand response programs, utilities offer customers money in return for allowing the utilities to turn back their smart thermostats, water heaters, or other devices.

Participation is voluntary, but with the proper program design the utilities have the potential to sign up hundreds of thousands of customers across Ohio.  Essentially, demand response acts like a virtual power plant.

• According to the Midwest Energy Efficiency Alliance (MEEA), statewide demand response programs would create estimated net savings of between $34.5 million and $104 million for the utility system, depending on participation rate. This does not include savings from reduced utility spending on infrastructure like transmission and distribution.
• Demand response programs can be implemented in 1-2 years, relative to building a new natural gas plant, which currently takes five-to-seven years, or new nuclear plants which can take up to ten.
• Ohio electric bills rose by about $30 per month in 2025, increasing from about $100 to $130 due to the PJM capacity auction. PJM estimates that electric bills in its region could rise up to another 5% starting in summer of 2026.

“Good energy policy manages both supply and demand. Ohio lawmakers took measures in HB 15 to increase supply, and we commend Rep Klopfenstein and Chair Holmes for moving quickly to lower demand,” said Rob Kelter, Managing Attorney for the Environmental Law & Policy Center. “Republicans and Democrats worked together on HB 15, and we know there will be similar cooperation here.”

“Demand Response programs are crucial to addressing skyrocketing energy costs,” said Nolan Rutschilling, Managing Director of Energy Policy for the Ohio Environmental Council. “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 in the PJM market, lessening the burden on all energy customers. We look forward to engaging on this legislation and ensuring Ohioans have clean, reliable, and affordable power.”

“Ohioans deserve reliable and affordable energy,” said Shayna Fritz, Executive Director, Ohio Conservative Energy Forum. “Providing demand response solutions will ensure we are helping our energy remain reliable during peak times. We worked with Ohio lawmakers on critical energy legislation such as House Bill 15 and look forward to working with them again to develop the best solutions for all residents.”

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