$1,469 for water bill. $326 for electricity. Murdered Ohioans say they were carved

COLUMBUS, Ohio – Molly Fadden’s water bill couldn’t be right.

Last fall, the utility bills for her two-bedroom apartment in Columbus began skyrocketing without explanation. Water alone was $157 in October; $631 in November; $1,318 in December; $1,469 in January; Billing records show it was $144 in February and eventually managed to balance out.

At first he refused to pay for what he thought was an obvious mistake. By January, the water and electric bill was more than $3,000 and came with an outage notice. While the water increased the exorbitant balance, the notice threatened that his electricity would be cut off if he did not pay approximately $1,500. He was told the problem was a leak but saw no evidence of water damage.

Worthington Meadows, which manages his apartment, gave him a loan of $465, but Fadden had to dip into savings to cover the rest of the $3,000. A property manager declined comment.

“I have two children at home. “I can’t let my power go out,” he said in an interview. “I felt bullied doing this.”

By July, he was faced with a new balance of $1,800 for water and electricity and the threat of another shutdown if he didn’t pay within 17 days.

The bills Fadden received did not come from American Electric Power or the Columbus water department, two local utilities. Instead, they came from Nationwide Energy Partners, a “submetering” company. Such businesses enter into agreements with landlords and manage tenants’ accounts behind an apartment complex’s water, gas or electricity main meter.

Submeters do not provide energy sources or process water like traditional plants do. But they still gained a place in the supply chain.

Nearly 316 complaints about the two submetering companies have been filed with the state attorney general’s office and the utilities commission (plus more with the Better Business Bureau) since 2020. In interviews, 14 of the filers told Cleveland.com and The Plain Dealer that the companies are pressing them with unpredictably rising bills. These often include high personal use rates as well as “common area” water and electricity charges. Some tenants say they didn’t understand the consequences of signing a lease on a metered unit and are now forced to pay or face disconnection.

It’s unclear how widespread the unregulated industry is statewide, but it is most prevalent in Columbus. NEP said it has about 50,000 customers, including 34,000 in Ohio and 1,000 in Cleveland. At least it also reaches apartments in Cincinnati and Rocky River. AEP estimates it loses at least $8.5 million in annual revenue to NEP alone. Columbus Department of Public Services spokesman George Zonders said he did not know how many people were underwater in the city’s service area. No estimates are available for American Power and Light, which has evaded some of the NEP’s regulatory scrutiny and has not responded to questions.

In 2023, the Ohio Public Utilities Commission issued such an official decision. Underwater surveying businesses are not “utility” companies. This means its customers are not entitled to the protections afforded to utility customers as a check against state-backed monopolies. These protections include pricing review, consumer rights against disconnections, access to payment assistance plans, emergency bill assistance, and others.

Kenyonna Groves as an AEP client safety net program Tenants pay 10% of their monthly income on electricity bills, and the state covers the rest. Applies to Ohioans earning less than 175% of income. federal poverty lineor about $45,500 for a family of three. However, the program is only available to customers who are legally considered utilities and does not apply to meter companies.

Groves moved with her mother and 11-month-old child into an apartment at The Benchmark in Columbus that was flooded by the NEP. According to billing documents, monthly water charges will run up to $387 and electricity will run up to $512. Groves was convinced there was either a meter problem or a leak.

Last year, the Home Energy Assistance Program, a federally funded emergency bill assistance program, said: paid $500 on his bill; the property manager agreed to pay a $500 credit; and his mother paid $133. Her latest balance is still $4,192.

The woman, who faced four power outages last year, including one that lasted two days, said she was looking for a new place that wouldn’t be flooded.

“I’m tired of stressing, tired of wondering if I’m going to wake up with no power,” he said.

Customers interviewed by Cleveland.com said they felt they were unfairly overcharged. Scott Wallace, who lives alone in a 725-square-foot unit at the Grandview Yard apartments in central Ohio, provided a copy of his September 2023 bill — $176 for electricity and $62 for water. He said the NEP attempted to explain higher expenses as products of inflation and rising interest rates.

“It’s predatory because what are you going to do? Didn’t you pay your bill? Cladia Plantin of Philadelphia said she was stuck with a $373 electric bill last February on an 880-square-foot apartment, despite a $111 “NEP Energy Rebate” and a $37 “community” rebate.

“You need electricity and water. They know this.”

Shane Tubaugh was an American Power and Light customer at the Madison Park apartments in Columbus for about a year before leaving due to months of electric bills ranging from $256 to $326, according to billing records he provided.

He left the city in April to visit his wife’s family abroad between April 6 and April 26, according to flight records he provided. The electric bill that month was still $260. His complaints to the PUCO and the attorney general’s office went nowhere. Neither did his protests against APL, which he called a “questionable” vendor.

“They swear up and down that they are the same price as AEP, and I don’t believe it,” he said.

Electricity bills vary depending on season, consumption, preferred temperature and other factors. In Columbus, where submetering has become commonplace, the average monthly electric bill over the past 12 months (regardless of family or unit size) was $143. Data from PUCO. A single person in Columbus pays an average of $155 per quarter for water, according to data from the city water department. predictions.

What companies say

Two companies that dominate submetering in Ohio are: Nationwide Energy Partners and American Power and Light (AP&L), both branded to mimic nearby traditional electric utilities and respected local companies.

Both are close to major developers. NEP was: established by Michael DeAscentis II, CEO LifeStyle Communities owns several apartments around Columbus. AP&L was founded by Donald Kenney and is now owned by Kenney’s son, according to the Better Business Bureau runs Preferred Living is another property manager in the city.

NEP, through spokesman Dave Myers, provided billing data from several customers flagged by a reporter; This validated the invoices that customers independently provided. The company offers customers a 110% bill credit if they can show they are being charged a higher rate than a traditional utility company, Myers said. He has repeatedly said that NEP’s customers do not charge fees higher than what an AEP customer would face.

Tenants’ perceptions of high bills often stem from misunderstandings about what triggers utility bills, he said. For example, many modern apartment complexes use electricity for both heating and cooling; This means higher prices for those who previously used gas to heat their homes.

“Electricity has become more expensive lately, and many people think their bills are too high no matter who sends them,” he said. “This issue is not limited to YEP”

He attributed Groves and Fadden’s water bills to leaks, an issue they had with the property manager and not the NEP.

Apartment complexes where tenants were at fault declined to comment.

A representative at the leasing office for Worthington Meadows, where Fadden lives, declined to comment or provide his name. The Port Management Group, which owns the flat, did not respond to written questions.

A woman at The Benchmark’s leasing office, where Groves lived, declined to comment or give her name. He declined to direct questions to the complex’s owners and referred a reporter to the “utility company.”

Cleveland.com and The Plain Dealer reached Kenney through his commercial real estate company. AP&L’s lobbyist, Michael Gonidakis, who is also president of Ohio Right to Life, agreed to submit written questions to the company. He didn’t reply to any of them and didn’t follow up on their messages.

legal status

According to American Electric Power, Nationwide Energy Partners clearly acts as a utility and should be regulated as such. Sends customers invoices that look like AEPs. Tenants who do not pay have their electricity cut off. Requires service calls.

The PUCO, a board of five commissioners appointed by the governor to five-year terms, sided with the NEP last year. Commission members reigned That NEP is not a public service but merely acts as a “representative of the homeowner.” So homeowners are utility customers, not tenants.

Two separate parties asked the Supreme Court to overturn this decision. The first came from Ohio Consumer Law, a state agency that acts as a watchdog for the interests of residential taxpayers. Court dismissed the case. The justices did not rule on the merits of the case, instead finding that the agency lacked standing to bring the case.

AEP also appealed. The case is pending and will be decided by the court; because three of the court’s seven seats will be up for grabs on Election Day.