Office of the Ohio Consumers' Counsel

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Ohio Consumers' Counsel: Consumers will not benefit from state regulators approval of Dominion natural gas plan

COLUMBUS, Ohio, May 26, 2006 - The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, today issued the following statement regarding the Public Utilities Commission of Ohio's (PUCO) approval of Phase 1 of Dominion East Ohio's plan to provide delivery service but no longer sell natural gas to consumers:

"The OCC was pleased that the PUCO agreed with us that the proposal should be limited to a Phase 1 trial period in order to evaluate the program and determine if it is beneficial to customers. We continue to be a strong proponent of natural gas choice that could provide consumers an opportunity to potentially save money on their monthly bills. However, the outcome advocated by the company and approved by the PUCO did not ensure customer savings," said Janine Migden-Ostrander, Consumers' Counsel. "Without the modifications recommended by the OCC, consumers will not receive the protection or the benefits that are necessary during a time of rising natural gas prices."

In April 2005, Dominion filed a two-phase proposal with the PUCO to begin the process of no longer selling natural gas to consumers. During Phase 1, Dominion would obtain natural gas for customers who have not chosen an alternative supplier through an auction process involving wholesale natural gas suppliers. The new rate which consumers would pay for natural gas in place of the current regulated Gas Cost Recovery rate would be called the Standard Service Offer (SSO) price. Dominion would continue to deliver the natural gas to customers. In addition, Dominion would step in and provide natural gas to customers in the event any natural gas supplier did not provide natural gas supply.

The OCC had recommended that the PUCO make the following modifications to Phase 1 in order to protect consumers:

Providing tangible benefits for consumers. The OCC has recommended implementing a company-sponsored energy efficiency program.
Implementing a more reasonable competitive bidding process by using a weighted average of the prices offered instead of allowing the highest of the lowest bids to set the price consumers will pay the suppliers for natural gas.
Continuing PUCO regulatory oversight of the company's actions related to the standard service offer and other services that Dominion would provide, such as billing and maintenance on pipelines.
Ensuring that customers do not pay Dominion for natural gas costs that already will be included in natural gas suppliers' rates.
Conducting customer education from the beginning of the process through local information meetings, bill inserts, letters to consumers, information on Dominion's website and through its customer service representatives.

At local public hearings held in early April, consumers stated that they had not chosen an alternative supplier in the past because it was too complicated. They also stated that they had no interest in switching from Dominion. None of the residential consumers who spoke were in favor of Dominion's proposal.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC website at www.pickocc.org.