Office of the Ohio Consumers' Counsel

Press Room

September / October 2007

Complaint handling comes back to Ohio's utility consumer advocate
Improved Electric Service and Safety Standards needed
Support a cleaner U.S. with green options
OCC in your corner
Energy rates would rise under utilities' proposals
Some gas risers to be replaced
Q&A: Prepaid Calling Cards

Complaint handling comes back to Ohio's utility consumer advocate

Photo of man with a bill After two years of not being able to handle Ohioans’ complaints about their utility services or providers, beginning October 1, 2007, the Office of the Ohio Consumers’ Counsel (OCC) will once again bring results to consumers. As a part of the most recent state budget, Governor Ted Strickland and members of Ohio’s General Assembly restored the OCC’s ability to receive and handle consumer complaints. During the previous budget period, all utility complaints were handled by state utility regulators.

“The OCC is pleased to once again offer complaint-handling services to consumers and looks forward to serving the public,” said Janine Migden-Ostrander, Consumers’ Counsel.

During the past two years, OCC, the residential utility consumer advocate, continued to answer calls through its toll-free hotline regarding questions and informational requests. It also monitored utility issues by reviewing information provided by state regulators. However, by talking with consumers one-on-one, the OCC once again can directly address concerns and complaints, helping to ensure a more positive outcome for affected consumers.

The OCC hotline can assist consumers on electric, natural gas, telephone and water issues, including the following:

Resolving a complaint about a utility service
Providing assistance on understanding charges on utility bills
Inquiring about choosing a natural gas or telephone provider
Receiving fact sheets on understanding utility bills and other related topics
Learning cost-saving tips through energy conservation and efficiency
Receiving information on disconnection and reconnection of utility services
Learning how to apply for low-income assistance programs

Typically, the OCC hears from consumers who want to learn about the choices they may have in utility companies or questions about charges on their utility bills. During the winter heating season many calls are from consumers who are facing the loss of a utility service and need assistance in maintaining a service or getting it reconnected.

Representatives are available Monday through Friday between 8 a.m. and 5 p.m. by calling 1-877-PICKOCC (1-877-742-5622). The OCC also operates an automated informational voice mail service which is available 24 hours a day. In addition to the toll-free number, consumers can reach representatives by sending requests or questions to occ@occ.state.oh.us, visiting the website at www.pickocc.org or by writing to Office of the Ohio Consumers’ Counsel, 10 W. Broad Street, 18th floor, Columbus, Ohio 43215.

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Improved Electric Service and Safety Standards needed

The service and safety rules that electric utilities must follow are under review by the Public Utilities Commission of Ohio (PUCO). The Office of the Ohio Consumers’ Counsel (OCC) has reviewed these Electric Service and Safety Standards and has made numerous recommendations to improve the service residential consumers receive.

The OCC’s proposed improvements would increase service reliability, enhance the enforcement of the rules, bring better consumer protections and mandate public reporting processes.

Photo of an electric outlet Reliable service needs to be a priority. Outages should be minimized to keep consumers’ lights burning bright. To do this, the OCC has proposed performance standards that hold utilities accountable.

Additionally, standards for vegetation management have been proposed, including a four-year tree trimming cycle, which also would improve reliability and reduce the number of outages caused by trees falling on wires.

The OCC has asked the PUCO to make documents that demonstrate the compliance level with all of these service performance standards available to the public. The OCC believes that customers have the right to receive the adequate and reliable service they are paying for and should be shown whether service is meeting required standards.

In addition to addressing performance standards for reliability, the OCC recommended several other modifications to improve consumer protections which include:

Higher customer service standards, including initiation of service on the next business day, the option to speak with a representative without delay and easy access to bilingual customer service representatives
Better protection of sensitive customer information like social security numbers and account-specific information
Bill credits to customers who experience delays in starting service, sustained outages due to lack of maintenance by the utility or more than three momentary outages in any month due to a utility’s inadequate trimming of trees and vegetation management
An annual customer satisfaction survey to identify customer perception and to identify appropriate improvements
Reduced charges for customers to make payments at an authorized agent in their community
More protections to customers on a medical or life-support system in the event of an outage, including the notification of family members or others and prioritized restoration
Advanced metering programs for any residential customers who want to better manage their electric use and potentially save money
Elimination of the ambiguity in the charges that customers pay to extend electric lines

These improvements should be coupled with stronger enforcement standards in order to have the best benefit for consumers. These proposed changes to the Electric Service and Safety Standards would give the PUCO the ability to propose corrective action or penalties if a violation is discovered.

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Support a cleaner U.S. with green options

Electric utilities across the state are beginning to offer renewable energy certificates (RECs) to their customers who want to support the development of green power in the United States. The Office of the Ohio Consumers’ Counsel worked with American Electric Power, Duke Energy and FirstEnergy to develop these programs. The GoGreen program is already available to Duke Energy customers and a Green Pricing Option is being made available to American Electric Power customers in September. FirstEnergy's program was approved by the Public Utilities Commission of Ohio (PUCO) in August.

Renewable energy certificates represent the positive environmental and social attributes associated with renewable energy resources. By purchasing RECs for a small premium, consumers can further reduce their impact on the environment caused by daily activities in addition to any energy efficiency measures already installed. When consumers purchase RECs they are supporting the use of renewable energy to replace the same amount of energy that would otherwise be produced from fossil fuels like coal and natural gas.

To sign up for these programs, customers will pay a small premium each month for a minimum of 200 kilowatt hours of RECs. Duke Energy customers should call 1-800-423-5401 to sign up for the GoGreen program. AEP customers should call 1-800-277-2177 to sign up for the Green Pricing Option.

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OCC in your corner

The Office of the Ohio Consumers’ Counsel (OCC) testified before the state legislature’s House Alternative Energy Committee about the need for reliable and affordable electricity now and in the future. Consumers’ Counsel Janine Migden-Ostrander told the committee “the time is right for Ohio to develop a comprehensive energy policy” including an aggressive energy efficiency program; the implementation of smart meters and new rate options to reflect the cost of energy during times of low and high demand; and a standard that would require that a percentage of a utility’s power come from renewable energy sources.

“As environmental regulations increase and as Ohio utilities work towards compliance with existing regulations, the cost of electricity will rise. Having other sources of supply (beyond coal) – such as renewable energy which has no fuel costs, will be a good hedge,” Migden-Ostrander told the committee.

Telephone consumer protections adopted by state regulators considered the concerns of the OCC and consumers. Based on the Public Utilities Commission of Ohio’s decision, important protections in the Minimum Telephone Service Standards were maintained. Some examples include:

Prohibiting most telephone companies from disconnecting basic local service if the customer has paid the local portion of the bill
Ensuring customers have at least 14 days after their account is past due before being disconnected
Maintaining priority repair lists for customers with medical conditions
Ensuring customers receive a credit if a telephone company misses a repair appointment even if the company cancels the day before
Continuing the requirement that telephone companies allow customers to promptly have an option to reach a representative

While the OCC is disappointed that some standards were scaled back (for example, customers will not be entitled to any credits for outages unless they lose service for 72 hours or more), consumers made a positive impact.

Duke Energy’s Ohio residential consumers will soon have both electric and natural gas energy efficiency programs to help control energy costs. The OCC worked cooperatively with and supported a request by Duke Energy to begin ten residential programs, including in-home energy analyses, air conditioner testing, rebates for purchasing efficient heat pumps, gas furnaces and air conditioning units and discounts on Energy Star light bulbs.

Duke Energy will spend a total of $75 million for all programs. Duke will be able to recover lost revenues and shared savings for some programs, however the OCC believes the customer savings will outweigh the costs of the energy efficiency programs based on a preliminary cost-benefit analysis. Studies will be performed on the programs to determine their effectiveness.

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Energy rates would rise under utilities' proposals

Beyond being utilities providing vital services, Dominion East Ohio, Duke Energy Ohio and FirstEnergy have something else in common. They each recently filed before the Public Utilities Commission of Ohio (PUCO) for authorization to increase their distribution rates in Ohio. These rates – which generally recover a utility’s costs for local facilities and equipment such as poles, wires and pipes – can account for 30 to 40 percent of a typical customer’s monthly natural gas or electric bill.

The Office of the Ohio Consumers’ Counsel (OCC) will be actively advocating on behalf of Ohio’s residential consumers in these cases. Rate cases often involve a review of utility filings, requests for additional information and hearings to allow participants to question utility representatives. From the filing of an application to a final PUCO decision, the entire process typically lasts nine months.

Dominion East Ohio, serving approximately 1.1 million residents primarily in northern Ohio, announced it will request a rate increase of $73 million per year. According to published reports, if the PUCO approves the new rates, an additional $4.50 per month would be collected from a typical residential customer.

Duke Energy, serving approximately 380,000 residential natural gas customers in southwest Ohio, has requested to increase its natural gas distribution rates by $34 million per year over what it has been authorized to charge since 2002. The company also has asked to continue to make annual adjustments to its rates through an accelerated natural gas main replacement program. In addition, Duke Energy is seeking approval for a rate structure that would allow either a credit or charge to customers based on the difference between the amount it actually collects from customers and the level of collection approved by the PUCO in this rate case.

FirstEnergy, serving 1.9 million residential customers in Ohio through three northern Ohio utilities, has requested to increase its distribution rates by a total of $340 million per year – $162 million for Ohio Edison customers, $107 million for Cleveland Electric Illuminating customers and $71 million for Toledo Edison customers. FirstEnergy has stated that because of the elimination at the same time of a regulatory transition charge, the net result will be lower rates for FirstEnergy customers. However, the reduced charges are not connected with the case concerning FirstEnergy’s distribution rates. If a review shows that distribution rates should increase by less than the $340 million requested by FirstEnergy, then customers would see a larger decrease on their bills.

As a participant in each of these cases on behalf of residential consumers, the OCC has several busy months ahead to ensure the resulting rates charged to customers are fair and reasonable.

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Some gas risers to be replaced

Many consumers recently have been hearing more news related to natural gas risers. Some may have even received notices that their homes have a riser that is the type prone to leaks. During the past several months, there have been several new developments in the issue surrounding natural gas risers. Natural gas risers are the vertical portion of the service line that connects the pipeline to the customer’s meter.

In addition to recommendations that were filed in February from the Office of the Ohio Consumers’ Counsel (OCC), the residential utility consumer advocate, and many other interested stakeholders, Columbia Gas of Ohio, Dominion East Ohio and Vectren Energy Delivery of Ohio each have asked for deferrals and recovery of costs related to the investigation ordered by state regulators. In each of these cases, the OCC has advocated for consumer safety and for consumers to pay only their fair share of related costs. The Public Utilities Commission of Ohio (PUCO) has not yet decided the issue of cost recovery by the utilities.

In July, state regulators issued a decision pertaining to a request by Columbia to begin replacing natural gas risers that are either leaking or identified as prone to leaks. Under the decision, Columbia will be able to reimburse customers, at a reasonable rate, for natural gas risers that had been replaced at the customers’ expense since Nov. 2006 when the PUCO staff report was issued. The PUCO also determined that Columbia would be allowed to assume responsibility for any future repair and replacement of risers and service lines.

Columbia had requested that it be able to recover approximately $200 million from customers in order to replace an estimated 400,000 natural gas risers. The PUCO did not make any firm decision on the amount or how Columbia could recover the costs associated with the repairs or replacements.

The OCC is continuing to provide updates on its website at www.pickocc.org. Information is located in the “Natural Gas” section. Additionally, consumers can contact the OCC toll free by calling 1-877-PICKOCC (1-877-742-5622) to receive information.

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Prepaid calling cards

Q: What are prepaid calling cards?

A: Prepaid calling cards allow consumers to pay for minutes or units of time up front. With prepaid cards, customers are provided a toll-free telephone number and access code to dial long-distance calls. Prepaid calling cards typically are purchased in various retail stores, and over the Internet. Many cards can be recharged by putting additional money towards more minutes or units.

Q: Are prepaid calling cards an attractive alternative for making long-distance calls?

A: With some prepaid calling cards’ rates below three cents per minute, they may be an affordable alternative to traditional long-distance service. Some consumers also use the cards for international calling or as a convenience while traveling. However, a prepaid card may carry hidden charges so be sure to read the fine print before purchasing a card.

Q: What types of hidden fees and surcharges may apply?

A: Charges and rates vary among calling cards. Connection fees of as much as $3 per call may apply. These fees are subtracted from the available minutes or units remaining on the card. If a pay phone surcharge applies to a card, it can add as much as 75 cents extra to calls made from pay telephones. In addition, be aware of any maintenance fees which may deplete minutes over time.

Q: Besides these fees, what other terms may affect how many minutes are received from a card?

A: Before purchasing a card, be aware of when the minutes or units will expire. Also, find out if minutes are depleted in one, two or three minute increments. If, for example, a card is billed in three-minute increments, a call lasting one minute and ten seconds would subtract three minutes from the calling card.

In addition, the minutes or units available may vary depending on whether calls are made to telephone numbers within the same state or to other states. For example, customers using AT&T prepaid calling cards should be aware that calls made from within Ohio to other telephone numbers within the state are billed at a rate of three minutes for every one minute of talk time. Calls from Ohio to other states are billed at a rate of one minute for every minute of talk time.

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