Office of the Ohio Consumers' Counsel

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Message from the Consumers' Counsel:

Two years of representation - much accomplished,
more to achieve

In April 2004 I was appointed Consumers' Counsel and I am proud of what we have been able to accomplish in a short time for residential utility consumers.

Two years ago we announced a long-term vision that encourages fair and reasonable rates, reliable service and programs that will give consumers better ability to manage their utility costs. Through our advocacy efforts we have been able to make some strides in making that vision a reality.

We have represented residential consumers in a number of rate cases that achieved several successes and others that are pending decisions by state regulators and the courts. For instance, the advocacy of the OCC resulted in a $26 million decrease in a Cincinnati Gas & Electric (CG&E) distribution rate increase request. Currently, the OCC is appealing rate plans of American Electric Power, FirstEnergy and CG&E to the Ohio Supreme Court because we believe the plans violate Ohio's electric choice law.

In the telecommunications industry, the OCC led efforts to reduce potential increases to basic local telephone service. The rules proposed by the Public Utilities Commission of Ohio (PUCO) could have increased rates up to 20 percent per year. But the OCC - with the help of other organizations - demonstrated the need for public hearings and submitted recommended changes to the PUCO. As a result of the OCC's advocacy efforts and consumer input at the public hearings, the PUCO allowed telephone companies to increase the monthly price of basic local service a maximum of $1.25 per year. For most customers, this maximum would be less than half of what was originally proposed.

The OCC's vision also prioritizes the need for comprehensive energy efficiency programs that give consumers better ways to manage their use of electric and natural gas. Since my appointment as Consumers' Counsel, I have been involved in discussions with utility companies to obtain energy efficiency programs that will bring short-term and long-term benefits.

These efforts already have yielded achievements for FirstEnergy's customers. The OCC has successfully negotiated $25 million for energy efficiency programs as part of an agreement involving a fuel rate increase request by the company. The money will help consumers' investments in energy efficiency and would lessen the need for FirstEnergy to buy expensive power during peak times.

The OCC also reached an agreement with Vectren Energy Delivery of Ohio to implement energy efficiency programs for customers. The programs would offer rebates for the purchase of energy efficient furnaces and water heaters, assistance with efficiency upgrades to existing homes, among others. The agreement has been filed at the PUCO and is pending approval. The OCC is also working with CG&E to bring energy efficiency programs to its customers. It has filed its proposal for energy efficiency programs to the PUCO in January and is awaiting approval.

Other successes during the past two years have been a result of a coordinated effort to address low-income issues. We have developed an open dialogue with low-income groups and agencies about assistance programs and how they can better serve consumers.

As a result, the group helped get $75 million in additional funding for energy assistance programs. The minimum income eligibility requirements to receive help were also increased last winter. Ideas also have been shared about how to improve extended payment plans and other low-income assistance programs for residents.

As I enter my third year as your Consumers' Counsel and the OCC celebrates 30 years of advocacy, the effort to lead consumers by presenting options for improving the overall package of services available to them will continue. A sustainable and affordable energy future can lie in the balance if prices are reasonable and programs are established so consumers can be empowered to manage their energy usage. This plan will also include an evaluation of the energy supply available as well as ways to better utilize energy to achieve the lowest overall prices for residential customers. By creating a plan, providing the necessary tools and implementing the options for tomorrow's utility market are critical to fulfilling our vision for informed consumers that can take control of their utility usage.

 

Best regards,

Janine L. Migden-Ostrander