Office of the Ohio Consumers' Counsel

Legislation to limit water companies' rate case expenses (House Bill 87, Senate Bill 150)

The Ohio House of Representatives and the Ohio Senate are considering legislation that would lower the amount of rate case expenses large investor-owned water and sewer utilities, such as Ohio American Water (OAW) and Aqua Ohio, can recover from their customers.

In Ohio, the rates private water and sewer companies may charge customers are set by the Public Utilities Commission of Ohio. This includes a review of all financial information submitted by a utility and incorporates the services of attorneys, consultants, expert witnesses and utility employees, and the presentation of studies and other evidence by the company. Currently, water and sewer companies can request full recovery of these "rate case expenses," which are figured into the rates proposed to charge customers.

House Bill 87 introduced Feb. 8, 2011, would limit up to 50 percent of the amount of rate case expenses water and sewer utilities may recover from customers. A companion bill, Senate Bill 150, was introduced April 21, 2011. OAW and Aqua Ohio, Inc. both have more than 15,000 customers and would be subject to this law.

The Office of the Ohio Consumers’ Counsel worked with Reps. Jay Goyal (Mansfield) and Cheryl Grossman (Grove City), and Sen. Jim Hughes (Columbus) to develop legislation that would require large water and sewer utilities to pay their fair share of rate case expenses.

This legislation was originally introduced in November 2009 (House Bill 344) with companion legislation introduced in the Ohio Senate in February 2010 (Senate Bill 228). The House bill received bipartisan support from the House Public Utilities Committee but the 128th General Assembly ended before the bill could be passed.

Legislation

• Download the legislation for SB 150

• Download the legislation for HB 87

• Ohio Legislative Service Commission Bill Analysis on HB 87

Fact Sheets

• Fact sheet about House Bill 87

Local Government Resolutions

Several local governments supported previous legislative efforts to limit water companies' rate case expenses when they were first introduced. Below is a sample resolution local governments can use to develop a supporting resolution of their own; and the resolutions of communities that previously supported the bills.

• Sample Draft Resolution (DOC format)

• Blendon Township Resolution

• City of Kirtland Resolution

• Clinton Township Resolution

• Madison Township Resolution

• Marion City Resolution

• Norwich Township Resolution

• Pleasant Township Resolution

• Perry Township Resolution

• Prairie Township Resolution

• Sagamore Hills Township Resolution

• Sharon Township Resolution

• Shalersville Township Resolution

• Truro Township Resolution

Maps

• Ohio map of areas served by private water companies

Testimony

• Testimony from Melissa R. Yost, Senior Counsel
  Office of the Ohio Consumers' Counsel

• Testimony from House Bill Sponsors, Goyal and Grossman
  

• Constituent Testimony
  • Testimony from Faith Covenant Church, Huber Ridge
  • Testimony from Stewart Flaherty
  • Testimony from David Kuta
  • Testimony from Margaret Kuta
  • Testimony from Jenny Maxey
  • Testimony from Joya Neff
  • Testimony from Sharon Ricker
  • Testimony from Sandy Rose

• Prior testimony on House Bill 344 during the 128th General Assembly
  • Testimony from Ohio Consumers' Counsel, Janine Migden-Ostrander
  • Testimony from House Bill Sponsors, Goyal and Harris
  • Testimony from House Bill Co-Sponsor, Grossman

Take Action

The OCC is urging Ohioans to contact their legislators in support of House Bill 87 and Senate Bill 150. Find out who your legislator is and how to take action.

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.