New HB15 Rules Target Tricky Intro Plans
If you’ve shopped for cheap electricity rates, then you’ve likely bumped into an electric intro plan. These plans often offer cheap short term rates that can save you a lot of money. But many Ohio families end up paying much more than they expect when the plans switch terms after they expire. That’s why Ohio lawmakers have created new rules that can protect homeowners from these surprise rate spikes. But what is HB15 and how will it affect Ohio electric intro plans?
What Is HB15?
House Bill 15 (HB15) is a massive energy reform bill. The Ohio General Assembly passed the bill on April 30th and is likely to be signed into law. Right now, the new law is projected to go into effect early August.
The bill is primarily focused on encouraging more in-state electric generation to answer Ohio’s growing energy demands. We’ve talked about HB15 previously, but these are some of the major parts of the bill.
- Mandate refunds for charges deemed unlawful by the state Supreme Court
- Expand behind-the-meter generation opportunities
- The end of electric security plans
How Does HB15 Affect Intro Plans?
One of the less-known parts of HB15 is how it affects Ohio’s electric intro plans.
As the name implies, an intro plan are short-term plans that often last for less than 6 months. These plans typically have the cheapest rates and can be a good way to try out a company’s services without a long commitment.
However, when the plan expires, you don’t automatically return to utility PTC rates. Instead, the plan renews into what may be a variable month-to-month product. So, your rates spike dramatically when demand is high. As a result, you may be hit with surprisingly large electricity bills.
Under current Ohio rules, energy companies are required to send only one notice, usually within 45 days of a plan termination. The notice explains that your plan is set to end soon, details the expected new rate and terms, and explains that you can cancel or switch. The problem is that many customers can misplace or overlook these notices. As a result, these customers find themselves suddenly paying higher month-to-month variable rates for their electricity.
Under HB15’s rules though, companies must send three notices. The first between 60-90 days of plan expiration. The second would come between 15-45 days of expiration. In addition, companies must send annual notices to their customers on these variable rates to consider fixed rate plans.
Shop For Best Electricity Plans
HB15 is great news for Ohio energy shoppers. Its new safeguards help you shop for the best rates in town and avoid surprise rate hikes. But remember, HB15 will not likely to go into effect until this August. So make sure you start shopping today.
You can start shopping right here at https://www.ohenergyratings.com. We’re also your first stop for news and tips that could affect your electricity bills.