Office of the Ohio Consumers' Counsel

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30th Anniversary Historical Facts

OCC work is paramount in disconnection relief – 1983

In response to sharp increases in utility bills and an extremely cold winter in 1982-1983, the Office of the Ohio Consumers’ Counsel (OCC) played a critical role to bring relief to consumers that would normally face disconnection for non-payment.

The OCC proposed a year-round payment plan that would ease reconnection of natural gas and electric service if disconnection should occur. By year’s end in 1983, the Public Utilities Commission of Ohio (PUCO) adopted a Percentage of Income Payment Plan, or PIPP, to help consumers with gross incomes at or below 150 percent of the federal poverty guidelines pay for their natural gas or electric utility service.

The program is a payment arrangement for qualifying consumers who pay a percentage of their monthly household income to the utility company to retain the service provided. Consumers must apply for all eligible financial and weatherization assistance programs and must allow the utility company to obtain periodic verification of their income.

The OCC’s advocacy not only supported the PIPP program, which still exists today, but also led to more stringent record-keeping by utilities about the number of households they disconnect and simplified the requirements for consumers to have their service reconnected.

OCC helps reduce millions in rate increases – 1990

The Office of the Ohio Consumers’ Counsel (OCC) helped save customers of Toledo Edison and Cleveland Electric Illuminating $98.2 million as a result of a management performance audit that was completed as part of a settlement agreement. The findings reduced 1991 rate hikes from 6 percent to 2.74 percent for customers of Toledo Edison and 4.35 percent for customers of Cleveland Electric Illuminating. The 12-month management audit, in which the OCC participated, stemmed from a 1989 rate case settlement that said the utilities had to equally share operating and maintenance cost savings uncovered by the audit with customers. The total savings reached nearly $155 million. The audit found savings of $84.7 million in operating and maintenance expenses, $32.2 million in lower capital costs and $37.9 million from a one-time sale of excess property and equipment.

Although operating and maintenance savings reached $84.7 million, the OCC negotiations after the audit report was completed, added another $13.5 million in savings from lower capital costs and excess property and equipment.

The settlement also established nuclear plant performance standards, a cap on company earnings, rate breaks and other assistance for low-income customers, and consumer advisory panels.

The utility management audit may have been a national first in which a consumer representative participated daily in the audit process, bringing credibility to the findings and the audit process.

Foundation of advocacy set with first Consumers’ Counsel – 1976

After the Office of the Ohio Consumers’ Counsel (OCC) was created in 1976, it next needed an attorney experienced in utility regulation to be the chief advocate for Ohio consumers. A nine-member board representing residential customers, organized labor and family farmers, had the task of selecting the state’s first consumer champion. After considering more than 60 candidates from around the country, William Spratley was chosen as Ohio’s first Consumers’ Counsel on Feb. 23, 1977.

Spratley served as Consumers’ Counsel for the next 17 years. Under his leadership, the OCC participated in more than 1,200 legal cases involving utilities in which many precedents were set that are still referred to today.

By giving consumers a voice in the utility world, Spratley and the OCC were able to gain many benefits in the early years of advocacy. Among them was a 1985 settlement with Columbia Gas Transmission which led to savings of $600 million for Ohio natural gas consumers.

From the start, the first consumers’ watchdog held utility companies to a standard of accountability residents still experience 30 years after the creation of the state residential utility consumer advocate.

Choice saves Ohioans millions in natural gas costs – 1997

The natural gas industry offered a choice in suppliers to residential consumers in Ohio for the first time in 1997. The natural gas choice program allowed consumers to choose their natural gas supply from an alternative provider. Nearly 50,000 customers participated in the pilot program initiated by Columbia Gas of Ohio and saved approximately $4 million in natural gas costs. By the end of the year, a choice program was also offered to customers of Dominion East Ohio Gas and Cincinnati Gas & Electric.

The Office of the Ohio Consumers’ Counsel (OCC) was active in educating consumers around the state about the new natural gas choice program. A survey conducted by OCC in November 1997 showed that 98 percent of respondents knew about the choice programs and 69 percent of participants felt they had saved money.

The following year, the Public Utilities Commission of Ohio expanded the pilot programs and nearly 1.8 million Ohioans had the opportunity to choose their natural gas supplier. By 2002, choice became an option to customers of Vectren Energy Delivery of Ohio making the programs available for residential customers of all major natural gas companies in Ohio.

Transmission case nets $600 million in savings for residents – 1985

As possibly one of the largest settlements in U.S. history at the time, the Office of the Ohio Consumers’ Counsel (OCC) played a crucial role in the 1985 settlement with Columbia Gas Transmission Corp. (TCO), which saved consumers more than $600 million. The Federal Energy Regulatory Commission (FERC) approved a modified settlement June 14, 1985 which benefited customers in Ohio, the District of Columbia and six other states.

The OCC disputed TCO’s proposed 23 percent increase in its purchased gas adjustment in August 1981 which was used to reflect the difference between the pipeline’s actual costs and its cost recovery. Along with other parties in the case, the OCC argued that TCO had abused its purchasing practices under the 1978 Natural Gas Policy Act, causing excess prices that should be refunded to consumers.

The FERC agreed with the OCC and others and ruled in January 1984 that the TCO did abuse purchasing practices. The settlement included a two-year rate moratorium, a decrease in purchased gas adjustment rates and an agreement that TCO would absorb costs in excess of the agreed upon rate.

OCC-led coalition produces changes in telephone rules – 2000

In the hopes of facilitating competition among telephone companies in Ohio, legislators passed Senate Bill 235 in 2000 to create new rules for the industry. The proposal developed by the Public Utilities Commission of Ohio was greatly opposed by the Office of the Ohio Consumers’ Counsel along with several other consumer groups.

A large grassroots effort led to more than 6,600 letters filed in the case at the PUCO opposing the proposed rules. The plan would have allowed higher rates for services like Caller ID, additional telephone lines and other commonly used features.

As a result of the OCC’s efforts, several concessions were made by the PUCO, which included capped rates for basic Caller ID and a limited price increase of 10 percent annually for Call Waiting. The OCC, however, still opposed the rules because they did not serve the public’s interest. The OCC believed companies should not have pricing and profit freedom when residential consumers do not have a choice in providers.

Central, Southwest Ohio consumers get millions in refunds – 1983

Legal victories by the Office of the Ohio Consumers’ Counsel (OCC) at the Supreme Court of Ohio helped get more than $20 million refunded to residential customers of Cincinnati Bell Telephone and Columbus & Southern Ohio Electric Co. in 1984.

In 1983, a rate increase of 19.6 percent granted to Cincinnati Bell prompted the OCC to re-examine the ruling. During rehearing, the Public Utilities Commission of Ohio (PUCO) agreed with the OCC that cost-related issues were improper resulting in a rate reduction by more than half from $22.5 million to $10.6 million.

Cincinnati Bell appealed the case to the Supreme Court of Ohio which upheld the decision and reversed another issue resulting in additional reductions for customers.

The Court also ordered Columbus & Southern (now known as Columbus Southern Power) to return $11.85 million, plus interest, to its customers for construction costs related to the Zimmer nuclear power plant.

The PUCO initially allowed Columbus & Southern to collect construction costs but the OCC successfully argued they should not due to an ordered shutdown of safety-related construction.

The company appealed the case to the Supreme Court of Ohio which agreed with the PUCO ruling and ordered refunds be issued for construction costs paid between March and December 1983. The OCC immediately asked to have costs paid between November 1982 and March 1983 refunded plus interest which the PUCO granted.

OCC interventions save consumers more than half a billion dollars – 1988

In just two years, the Office of the Ohio Consumers’ Counsel (OCC) was able to help obtain credits for residential consumers and prevent them from paying more than $600 million related to power plant mismanagement throughout the state.

In the 1980s, the Public Utilities Commission of Ohio (PUCO) found electric companies to be negligent and culpable of mismanagement in the construction and operation of several nuclear power plants. The OCC successfully defended consumers’ rights ensuring they would not foot the bill for the electric companies’ missteps.

For instance, Northeast Ohio residents saved $568 million in 1988 when the PUCO disallowed charges related to mismanagement and cost overruns at the Perry nuclear power plant. The owners of the plant oversaw a project that was marred with significant costs and delays that could have been avoided.

Customers of Toledo Edison and Cleveland Electric Illuminating also were credited $61 million in 1988 partly because of the work the OCC did to defend residents. State regulators ruled that a June 1985 accident that shut down the Davis-Besse nuclear power plant was caused by utility mismanagement and consumers should be reimbursed for the millions they were charged related to the shutdown.

The credits represented extra fuel and power the utility companies purchased during part of the outage which lasted until December 1986 because of a failure in the plant’s cooling system.

Disconnection rules designed with insight of OCC – 1980

In one of its first major victories in rulemaking proceedings, the Office of the Ohio Consumers’ Counsel was instrumental in the establishment of statewide utility disconnection standards that have protected residential utility customers for more than 25 years.

Before these landmark rules were put in place, consumers had little protections from having their service disconnected. Disconnection practices also varied from company to company. With the help of the OCC, legislation was passed that required statewide uniform rules which were developed by the Public Utilities Commission of Ohio that gave utility customers the ability to maintain service.

Since 1980, customers have had the choice between making six equal monthly payments or pay one-third of the total balance each month and stay connected to their natural gas or electric service. The rules also established a disconnection process, provisions when a utility cannot disconnect service and medical certification, which prevents disconnection of service if it is a danger to the health of customers with medical conditions.

U.S. Court: Power plant risk cannot be shifted to consumers – 1980

National precedent was set by the Office of the Ohio Consumers’ Counsel (OCC) in 1980 after it challenged and won its case against major natural gas pipeline companies and the Federal Energy Regulatory Commission (FERC) regarding the construction of a $900 million coal gasification plant in North Dakota. The OCC was the only consumer advocate representing the interests of residential utility consumers, out of 90 parties in the case.

Five major natural gas pipeline companies, including Columbia Gas Transmission Corp., requested permission from the FERC to construct the plant, which was designed to convert coal into natural gas, creating the first such commercial plant.

The OCC intervened in the case at the FERC in August 1978 because of the financial impacts that would be passed onto residential customers. The pipeline companies requested an “all events” tariff, which would require consumers to pay for the plant even if it never became operational, removing all of the risk from the companies and its shareholders. The synthetic gas was projected to triple, even quadruple the cost of traditionally produced natural gas.

A FERC administrative law judge agreed with the OCC that the proposed financing plan was inappropriate but FERC Commissioners overturned the decision and approved construction.

The OCC appealed to the U.S. Circuit Court of Appeals in Washington D.C. and said that placing the burden of risks and costs on the consumer was unfair and went beyond the powers granted to the FERC.

The appellate court ruled unanimously in favor of the OCC saying the financial stipulations of the plant “were certainly not ordered with the interests of ratepayers foremost in mind….”

 

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OCC has had to cancel many of its services, including its consumer call center, due to recent budget cuts. We realize you may continue to need assistance with your utility services. OCC's website provides free access to publications and resources.

You may seek assistance with utility complaints from the Public Utilities Commission of Ohio:
800-686-7826. For complaints about non-utility related services, you may call the Ohio Attorney General
at 800-282-0515.