Office of the Ohio Consumers' Counsel

• Electric
• Natural Gas
• Telecom
• Water
• Annual Reports
• Consumer Protection
• Customer Profile
• General OCC Info
• Newsletters
• Smart Energy
• Utility Assistance
• Fact Sheets
• El Informador

OCC and AARP to hold free “Managing Your Utility Bills” workshops

The Office of the Ohio Consumers’ Counsel (OCC), with its Customer Advisory Panels, has joined AARP Ohio to host five, free “Managing Your Utility Bills” workshops throughout the state.

The presentations will include information about issues, such as:

• Utility affordability and factors affecting bill increases
• Payment assistance programs and options to avoid loss of services
• Understanding electric and natural gas choice programs
• Different conservation programs
• How to network and find grass-roots advocacy opportunities

An energy efficiency display will be included as well as educational materials made available by both organizations.

Workshops are scheduled, as follows

• Findlay – Tuesday, Nov. 29, 2011, 9:30 a.m. – Noon
  OSU Extension – Hancock County
  7868 County Rd. 140, Suite B
  Findlay, OH 45840

• Fairview Park – Wednesday, Nov. 30, 2011, 9:30 a.m. – Noon
  Fairview Park Senior Center
  21220 Lorain Rd.
  Fairview, Park OH 44126

• Columbus – Wednesday, Dec. 7, 2011, 9:30 a.m. – Noon
  Martin Janis Senior Center
  600 E. 11th Ave.
  Columbus, OH 43211

• Athens – Friday, Dec. 9, 2011, 9:30 a.m. – Noon
  Athens Community Center
  701 E. State Street
  Athens, OH 45701

• Cincinnati – Tuesday, Dec. 13, 2011 - 9:30 a.m. – Noon
  Cincinnati-Hamilton County
  Community Action Agency
  1740 Langdon Farm Rd.
  Cincinnati, OH 45237

Seating is limited for each event. To register, please call AARP-Ohio toll-free,
877-926-8300.

return to top 

$78 million to be returned to AEP customers

American Electric Power (AEP) customers will be getting a partial refund of unjustified charges the utility collected in 2009.

The Office of the Ohio Consumers’ Counsel advocated for the return or reduction in rates of $787 million in costs AEP collected from customers after the Supreme Court of Ohio ruled the Public Utilities Commission of Ohio (PUCO) erred by approving the costs.

The PUCO, in an Oct. 3 decision, only eliminated an estimated $78 million in charges related to a utility's financial risk of providing generation service to customers who had chosen another provider and later returned to the utility. In such instances, the utility is required to be the provider of last resort (POLR).

The OCC argued throughout the case that AEP failed to prove it incurred actual costs to support the charges. Additionally, the OCC asserted that carrying costs for environmental investments AEP made prior to 2009 should not be allowed. Carrying charges include costs for a return on investments, depreciation, administrative costs, income taxes and property taxes.

According to the tariffs filed with the PUCO, the POLR charge will be eliminated in November and December for both Columbus Southern Power and Ohio Power customers. In addition, a Columbus Southern Power customer who uses 1,000 kilowatt hours per month will receive a credit of $4.27 for POLR charges collected from June to October.

In April, the Court agreed with the OCC and Industrial Energy Users – Ohio that there was no evidence for AEP to collect $456 million in POLR charges.

The OCC’s advocacy also resulted in the Court ruling that $330 million in environmental investments should not have been approved. However, the PUCO subsequently ruled that AEP could continue to charge customers for the environmental investments.

If not for the OCC’s, and the Industrial Energy Users – Ohio, successful arguments before the Supreme Court of Ohio, customers would still be paying for charges that were eventually disallowed.

The Court also said the PUCO erred by approving $63 million in retroactive rates. However, because the OCC was financially unable to post a bond that would have stayed AEP from collecting the $63 million, the utility was able to keep the money under current law. The Court, in its decision, said changes in the law would have to be made to correct the bond requirements for state agencies to be able to prevent this from occurring in the future.

By Anthony Rodriguez

return to top 

OCC recommends reduction in one AEP proposal, objects to settlement in second

In its latest action involving proposed rate increases by American Electric Power (AEP), the Office of the Ohio Consumers’ Counsel (OCC) has recommended a $51.8 million decrease to the utility’s distribution rates.

In October the OCC filed testimony at the Public Utilities Commission of Ohio (PUCO) that questioned the methods used to calculate costs related to pensions, operating income, labor expenses and other charges. Following its review of these costs, the OCC recommended a revenue reduction of 12.43 percent for AEP’s Columbus Southern Power utility and 1.37 percent for its Ohio Power utility.

If the PUCO approves the OCC's recommended decrease, the average residential Columbus Southern Power customer would save $3.67 per month in the winter and $6.08 per month during the summer. Low-use residential customers of Columbus Southern Power would save an average of $2.43 per month in the winter and $1.54 per month in the summer. The average residential Ohio Power customer would save 37 cents per month throughout the year. These savings are on the delivery portion of customers' electric bills which is about 25 percent of the total monthly cost.

The OCC also disagreed with AEP's proposal to shift more of its costs into its fixed customer charge while creating one energy charge for usage. AEP has proposed to increase its customer charge to $8.40 per month for all residential customers, an increase of 86 percent for Columbus Southern Power customers and 120 percent for Ohio Power customers. The usage charge would be correspondingly reduced to 2.14 cents per kilowatt hour of electricity used. The chart above fully details AEP’s proposed rate design change.

The change would particularly affect Columbus Southern Power customers who heat with electricity since it is sudden and does not follow the ratemaking principle of gradualism.

Because the OCC has recommended a rate decrease, the PUCO should keep the customer charge as is and change the usage charge accordingly, the OCC said in testimony.

Settlement in second rate proposal should be rejected.

The OCC also objected to AEP’s proposed settlement of its electric security plan, which would set the prices customers pay for the generation of electricity. Generation is related to the actual electricity produced and used in Ohioans’ homes.

In September, the OCC said the agreement AEP proposed will result in costs that are unreasonable and would fail the required tests set in Ohio law to ensure customers pay the lowest cost for electricity.

In addition to the unreasonable costs, the settlement unfairly allocates up to 65 percent of the requested increase to residential customers when they are using considerably less electricity. Columbus Southern Power residential customers would pay 65 percent of the increase requested in that territory when they only use 43 percent of the total electricity. Ohio Power residential customers would pay 47 percent of the increase requested in that territory when they only use 28 percent of the total electricity.

A $100 million per year distribution charge also was included in AEP’s proposed settlement that has not proven to be needed, the OCC said.

Hearings were held on the settlement where the OCC made its case that the settlement did not benefit residential consumers and should be rejected.

As of this writing, decisions in both cases were still pending from the PUCO.

By Anthony Rodriguez

return to top 

Agreement in Duke electric plan expected to lower customers’ bills

Duke Energy Ohio customers are expected to see a reduction in their electricity costs next year after the Office of the Ohio Consumers’ Counsel (OCC) reached an October agreement with the utility and others.

As a result of the agreement, Duke Energy will hold multiple competitive auctions from January 2012 through May 2015 to set the price for electric generation service. The OCC has long supported the use of competitive auctions to help lower the price of electricity for consumers.

Competitively pricing electricity has benefited customers served by FirstEnergy during the past year. The most recent auction, held in late October, resulted in the lowest price yet to determine the rate residential customers will pay for electric generation service.

Before an auction can take place, the agreement will have to be approved by the Public Utilities Commission of Ohio (PUCO).

The agreement filed at the PUCO is considerably different from the original proposal filed by Duke Energy in June. In that proposal, Duke sought to price electricity for nearly 10 years. It also included several elements such as developing a charge that would allow the utility to collect electricity delivery costs without the same level of regulatory scrutiny traditionally given. The OCC expressed concerns about the ultimate cost customers would have had to pay under this proposal.

By Anthony Rodriguez

return to top 

Winter Reconnect Order now available to assist customers having trouble staying current with their electric or natural gas bills

The Office of the Ohio Consumers' Counsel (OCC) advises customers facing a loss of their electric or natural gas service for non-payment that the Winter Reconnect Order is now in effect. The Public Utilities Commission of Ohio (PUCO) issued its annual order in September, which can be used on a one-time basis to avoid disconnection. This year, a new provision was included, affecting customers participating in the Percentage of Income Payment Plan (PIPP Plus).

Highlights of the PUCO's order:

• Customers requesting new natural gas or electric service who have no outstanding balance with the utility may establish new service by paying the $175, rather than paying the required security deposit.

• 
  

  If the security deposit exceeds $175, the remaining balance will be added to their next month's bill.

• For households with incomes below 200 percent of the federal poverty guidelines, funds provided through the Low Income Home Energy Assistance Program (LIHEAP), Winter Crisis Program (WCP) or other energy assistance programs may be used to pay the $175 charge.

• Households with incomes above 200 percent of the federal poverty guidelines must enter a payment plan for any remaining balance above $175.

• Customers dropped from PIPP Plus for non-payment must pay up to $50 (per utility) for any PIPP Plus default amount over $175. This applies to customers either facing disconnection, or who have already been disconnected, who may wish to re-enroll in the PIPP Plus program.

The Winter Reconnect Order is in effect until April 13, 2012. Income-eligible customers have options, such as PIPP Plus and the Low Income Home Energy Assistance Program (LIHEAP), in addition to the PUCO Order. The OCC offers several free publications explaining these programs on its website, www.pickocc.org.

By Marty Berkowitz

return to top 

Medical Certifications can prevent utility disconnection

With cold, wintry weather rapidly approaching, residential heating bills are sure to increase as temperatures drop. With Ohio’s economy still struggling, many citizens will continue to be faced with a disconnection of their electric or natural gas service because they are unable to pay their bills.

For customers with special medical needs, a disconnection may be prevented with the use of a medical certification. Customers facing disconnection need to communicate their circumstances to their personal physician as well as the utility.

State law allows customers to avoid disconnection of their electric and natural gas services for nonpayment up to three times if a permanent member of the household has a medical condition defined as “especially dangerous” to health.  As long as there is a medical certification waiver on file with the utility company a disconnection can be avoided.

The Office of the Ohio Consumers’ Counsel (OCC) offers a fact sheet, Keep utilities on with a medical certification waiver, which describes how to obtain a medical certification waiver, how long such a waiver may be valid and other options available to ensure that utility service remains connected.

It is critical that customers understand that even though medical certifications can postpone a disconnection, they still have to pay for their utility service, including the bills that they receive while the certification is in effect. It is also important to be aware that certification forms must be completed for each case of disconnection or reconnection. A waiver to maintain electric service will not be sufficient to prevent disconnection if a notice is received from the gas company.

Planning ahead is vitally important in preventing a bad economic situation from becoming a potentially life-threatening emergency. The OCC offers several additional fact sheets developed to inform customers of what to do when facing a disconnection of their electric, natural gas or local telephone service.

During the past year, one in 10 Ohio households was faced with disconnection of their electric or natural gas service. These situations can be prevented by simply taking action before the service is cut off. By contacting the local utility, payment arrangements may be arranged that will enable customers to make affordable payments. There are also a number of assistance programs that can be accessed through local community action agencies throughout Ohio.

Understanding all the options is the best way to prevent losing heat during the bitterly cold months of winter.

By Marty Berkowitz

return to top 

How to save on your energy bills

                
The simplest way to save on your utility bills is to increase the efficiency of energy you use in your home. The Office of the Ohio Consumers’ Counsel (OCC) offers several no-cost and inexpensive ways to improve efficiency that can lead to savings on your monthly energy bills.

Start by taking our Smart Energy Home Energy Audit to discover where you may be able to make some impacts right away. This simple audit can lead you to OCC's Smart Energy Tips for additional ways to incorporate changes that can help you save. You also can get some customized suggestions based on where you live in Ohio with the OCC’s Smart Energy House.

An often forgotten consumer of energy is the seemingly ever-increasing use of electronics in the home. Whether you are actively using them or not, most electronics will continue to consume energy as long as they are plugged into an electric socket. The OCC has gathered some powerful information that may make you think twice about leaving a rarely used television plugged in. Check out our Frequently Asked Questions about Vampire Power fact sheet to see just how big an impact these energy consumers are making in your home.

With these tips and recommendations to increase energy efficiency you may have a few, or many actions you are considering to help reduce your monthly energy bills. During the last couple of years, the OCC has worked with the state’s electric and natural gas utilities to create effective energy efficiency programs. You can take advantage of these programs by taking a look at the programs your utilities have developed to see if they may be able to meet your energy savings goals.

• American Electric Power energy efficiency programs
• Columbia Gas of Ohio energy efficiency programs
• Dayton Power & Light energy efficiency programs
• Dominion East Ohio energy efficiency programs
• Duke Energy Ohio energy efficiency programs
• FirstEnergy energy efficiency programs
• Vectren Energy Delivery of Ohio energy efficiency programs

The actions you take today can help you stay comfortable in your home this winter, and throughout the year.

By Anthony Rodriguez

return to top 

OCC Governing Board pays tribute to two departing
members and welcomes their successors
Moliterno Selected Chairman

The Governing Board of the Office of the Ohio Consumers’ Counsel (OCC) has two new members, Sally A Hughes, Columbus and Fred Yoder, Plain City, who have been recently appointed by Ohio Attorney General Mike DeWine and confirmed by the Ohio Senate. Michael Watkins, Elida, also was reappointed and confirmed as a representative of organized labor.

Hughes and Yoder have replaced longtime board members, Jerome G. Solove, Columbus, and Dorothy L. Leslie, Upper Sandusky, whose terms had expired. Mr. Solove served as chairman since 1999, after being appointed to the Board in 1998. Mrs. Leslie served on the Board since 2001. The Board honored both departing members with resolutions of appreciation.

John Moliterno, who has been vice-chairman of the Board since 2006, was elected chairman of the Governing Board at its Sept. 21 meeting. He was first appointed to the board in 2003 as a representative of residential customers.

By law, the bipartisan board is made up of nine members – three each representing residential customers, organized labor and family farmers. Each member serves a three-year term.

A graduate of the Ohio State University, Mr. Moliterno is currently president and chief executive officer of Pegasus Printing Group which includes printing-related companies in Ohio and Pennsylvania. In addition, he is the treasurer of the City of Girard. He is a board member of the Youngstown State University Penguin Club and Better Business Bureau of Mahoning Valley, and chairman of the Trumbull County Workforce Development Board.

The new board members bring a wide diversity of experiences to their new positions. Ms. Hughes is appointed to represent residential customers, while Mr. Yoder represents family farmers.

Currently, Ms. Hughes serves as president and chief executive officer of Caster Connection, Inc., a company she founded and leads based on the principle of “constantly seeking ways to increase the value our customers receive for their investments in casters and wheels.”  She began the business by selling casters out of her car and quickly expanded to providing heavy duty casters and wheels to industrial companies. She led her company’s efforts to implement and advance safety measures for moving heavy equipment, eventually expanding to provide services to the food service, commercial laundry and bakery industries.  The Ohio University graduate presently serves on the Board of the Ohio Chamber of Commerce and is a member of the Entrepreneurs Organization, Women’s Presidents Organization and Women’s Business Enterprise National Council.

As a fourth generation family farmer, Mr. Yoder is the owner and operator of Fred Yoder Farms. He is also a partner and executive vice president with Yoder Ag Services LLC, which markets seeds and consulting services. He has been a strong advocate of expanding biotechnology in farming, traveling internationally and testifying before the U.S. Congress on ways to grow the market for farm-produced biofuels.

Mr. Yoder currently serves as an Ohio delegate to the U.S.A. Poultry and Egg Export and U.S. Grains Councils. He also serves on the Ohio Corn and Wheat Political Action Committee, Wheat Growers Association and Ohio Corn Marketing Boards of Directors, the Madison County Farm Bureau Board of Trustees and is chairman of the Ohio chapter of the 25 by ’25 Alliance and National 25 by ’25 Adaptation Work Group. Mr. Yoder also is a past president of the Ohio Corn Growers Association and past chairman of the National Corn Growers Association Biotech Working Group and is a winner of the 2010 Ohio Livestock Coalition Environmental Stewardship Award.

By Marty Berkowitz

return to top