Office of the Ohio Consumers' Counsel

Legislation passes that allows more rate increases for natural gas customers

On June 2, 2011, Governor Kasich signed Substitute House Bill 95 (Sub. HB 95) into law.   This legislation will enable natural gas companies to raise customers' distribution rates without a mandatory review by all concerned stakeholders of their costs. However, prior to passage, the Office of the Ohio Consumers' Counsel (OCC) was successful in persuading the Senate Energy and Public Utilities Committee to limit the number of capital expense riders (additional costs) utilities could request to one per year.

Sub. HB 95 does not impact customer’s choice of natural gas suppliers; instead, it affects the distribution portion of customers’ bills. These costs are for the delivery of natural gas through utility pipelines. Distribution costs include replacement and repair of existing infrastructure (pipelines) and other operating costs incurred by the utilities.

The OCC is pleased with the changes made to the natural gas legislation that help protect consumers, however, remains concerned that this legislation may result in larger rate increases to customers.

How Sub. HB 95 will impact customers:

• It will expose customers to the possibility of annual rate increases.
  

• It will limit opportunities for the OCC and other stakeholders to advocate for lower rates for customers by removing the requirement for a hearing.
  

• It will ease the process for natural gas companies to add extra charges (riders) to existing rates with fewer opportunities for advocacy groups to do a full review of the costs they are seeking to recover from customers.
  

• Utilities could renew existing rate plans beyond the term negotiated in currently valid agreements, when costs may have been fully recovered and/or failing to take into consideration other costs that may have gone down.  Adjustments would not be made because cases contemplated under Sub. HB 95 may be filed without filing a companion rate case.

• It will limit the scope of audits for natural gas companies to an examination of the company’s natural gas purchasing or production policies. Changes that could potentially lower customer rates might not be considered.

Legislation

• View the legislation for Sub. HB 95

Testimony

• Testimony of Janine Migden Ostrander, Ohio Consumers' Counsel
  Senate Energy and Public Utilities Committee
  May 18, 2011

• Testimony of Janine Migden Ostrander, Ohio Consumers' Counsel
  House Public Utilities Committee
  March 23, 2011

• Testimony from the AARP

• Testimony from the Ohio Energy Group

• Testimony from the Ohio Environmental Council

• Testimony from the Ohio Partners for Affordable Energy

• Testimony from the Sierra Club

• Testimony from Serving our Seniors

• Testimony of Dennis R. Hetzel, executive director, Ohio Newspaper Association  House Public Utilities Committee
  March 16, 2011 

  
  

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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.