Office of the Ohio Consumers' Counsel

• Press Releases
• Press Kit
• Migden-Ostrander Biography & Photos
• About the OCC
• Historical Journal
• Consumer Benefits
• Information Requests & Feedback
• Stay Connected Videos
• Story Ideas
• Archives

Agreement cuts Columbia Gas of Ohio distribution rate increase request by nearly half

Negotiations between the Office of the Ohio Consumers’ Counsel (OCC), the staff of the Public Utilities Commission of Ohio (PUCO), Columbia Gas of Ohio and other parties resulted in an agreement reducing the amount of Columbia’s proposed annual rate increase and providing new energy efficiency programs for consumers.

The parties in the case agreed to:

• A five-year cap on recovery costs for Columbia’s “Infrastructure Replacement Program” which will include replacement of potentially faulty gas risers, replacement of iron and steel pipe in its distribution system, and installation of automatic meter reading devices.

• Provide $3 million, through Columbia’s shareholders, over the next five heating seasons to assist low-income customers in the payment of bills.

• Improve customer service by allowing new customers to pay their security deposits in three monthly installments and providing information to help customers distinguish between authorized and unauthorized payment agents.

A key point of contention during the rate case was the structure of Columbia’s base distribution charge, which accounts for 20 percent of a customer’s total bill and includes costs for meter reading, billing and maintaining the distribution equipment through which natural gas is delivered. The distribution charge consists of a flat-rate customer fee and a charge that varies according to the amount of gas a customer uses.

The PUCO approved Columbia’s request to raise the flat-rate customer charge from $6.50 to $12.16 per month starting in December 2008, and again to $17.81 per month in December 2009. The increases will be offset by a reductions in the usage-based portion, which will be eliminated the second year. The OCC opposed this change and believes that a fixed rate that everyone must pay regardless of income or the size of their home will have a harmful effect on low-usage, low-income customers and discourage them from conservation efforts.

return to top 

Partnership calls for electric reliability investigation

A newly formed partnership of consumer groups has requested that the Public Utilities Commission of Ohio (PUCO) investigate each of Ohio’s investor-owned electric utilities, American Electric Power, Dayton Power & Light, Duke Energy and FirstEnergy, to determine whether they are doing enough to limit the breadth and depth of power outages in their respective regions.

The partnership – Consumers for Reliable Electricity in Ohio (CREO) – includes the Office of the Ohio Consumers’ Counsel (OCC), AARP Ohio, Appalachian People’s Action Coalition, Cleveland Housing Network, Consumers for Fair Utility Rates, Edgemont Neighborhood Coalition of Dayton, Empowerment Center of Greater Cleveland, May Dugan Multi-Service Center, Neighborhood Environmental Coalition, Northwest Ohio Aggregation Coalition, Ohio Farm Bureau Federation, Ohio Farmers Union, Pro Seniors, Inc. and United Clevelanders Against Poverty.

“More than 2.6 million electric customers suffered without power, some for a week or longer, following September’s wind storm. Now is the time to investigate whether more routine maintenance – including tree trimming, pole inspections and equipment replacement – should have been performed by Ohio’s electric utilities,” said Janine Migden-Ostrander, Consumers’ Counsel. “During a severe storm, some power outages are bound to occur. Afterwards, public utilities and state regulatory agencies share a responsibility to review and investigate what can be done in the future to limit the extent and duration of the outages. An investigation by the PUCO would provide an opportunity to evaluate the utilities’ policies and practices to limit the effects of future storms.”

“The need for electric power for many farm and rural energy consumers is increasing dramatically. Farm Bureau leaders feel that enhancing and upgrading electric service will probably be one of the industry’s largest challenges since the system was first created in the 1920’s and 30’s,” said Dale Arnold, Director of Energy Services for the Ohio Farm Bureau Federation.

“The reliability of the Ohio's electric system is of paramount importance to the health, welfare and quality of life of individual consumers, particularly older consumers,” said Ron Bridges, Associate State Director for Government Affairs and Advocacy, AARP Ohio.

Ellis Jacobs, attorney for the Edgemont Neighborhood Coalition of Dayton said, “Customers have long been paying for maintenance and repair services in their rates. We want to make sure that they have been getting their money's worth.”

return to top 

return to top 

How to choose a programmable thermostat

Installing a programmable thermostat is one of the easiest and most effective ways to save on energy costs. Once set, it regulates household temperatures 24 hours a day. There are many choices available and it's important to determine the right thermostat for your home and lifestyle needs.

There are two basic models from which to choose. One is a weekday/weekend model that allows one schedule for the workweek and one or two schedules for the weekend days. The other is a seven-day model that allows much more flexibility when setting household temperatures. All temperature settings can be temporarily overridden when needed. Each usually comes with four pre-programmed settings that will raise or lower the temperature at certain times of the day. Prices usually range from $30-$100 but can be as expensive as $300.

When choosing a thermostat, make sure you choose an ENERGY STAR-rated model. It is also important to select a model that will be compatible with the home’s heating and cooling system. For example, some models will indicate whether they are compatible with an electric heat pump. Most models can be purchased at hardware and home improvement stores and have simple, do-it-yourself instructions. Consider the schedules of all people in the household when deciding the best model. Remember, some models come with few features but others can be more complex. Look for easy-to-follow instructions that make installation and programming as easy as possible. At the very least, expect to set the date, time and the heating or cooling system it will control and temperature settings.

This story was written in response to a request from a Consumers’ Corner reader. If you have an issue you would like the Office of the Ohio Consumers’ Counsel (OCC) to cover, write to the OCC at the return address on the back of this newsletter or e-mail pr@occ.state.oh.us.

return to top 

Payment assistance available for heating season

The Office of the Ohio Consumers’ Counsel (OCC) is reminding residential utility consumers needing assistance with this winter’s heating bills that there are a number of options to help them stay connected with their services:

Ohio’s Winter Reconnect Program provides households that are threatened by or are experiencing a utility disconnection with a one-time chance to restore their natural gas and/or electric utility service for $175 plus a reconnection fee of no more than $20. All Ohio households are eligible for this program regardless of income. Customers must enter into a payment arrangement with the utility company for any remaining balance on their account (available through Apr. 15, 2009).

The Home Energy Assistance Program (HEAP) gives households a one-time payment towards their winter heating bills. The HEAP benefit can be used towards natural gas or electric bills or non-regulated bulk fuels such as propane, fuel oil, and fire wood. Households at or below 175 percent of the federal poverty level are eligible for this program. After completing the HEAP application consumers can apply by mail. (applications taken through Apr. 30).

Emergency HEAP is a part of the regular HEAP program. Households facing disconnection or have already had their regulated natural gas or electric utility service disconnected can receive up to $175 through Emergency HEAP to have their services restored. E-HEAP is available once per winter per household and is in addition to the regular HEAP benefit. Consumers must apply in person for E-HEAP, typically at their county Community Action Agency (Available through Mar. 31)

The Percentage of Income Payment Plan (PIPP) is a program that allows income eligible consumers to pay a percentage of their monthly incomes rather than their actual winter heating bills (typically 10 percent for their primary source of heat). PIPP customers are still responsible for their actual usage, but as long as they remain on the program those “arrearages” are deferred. Once a customer is no longer income-eligible for the program and is once paying their actual usage, a PIPP Arrearage Payment Plan can be set up with the utility company that allows the customer to pay no more than $20 per month on their PIPP debt. Changes in the PIPP program have been proposed that will likely impact PIPP customers in 2010. (Customers can apply for PIPP year- round)

The Home Weatherization Assistance Program (HWAP) helps income-eligible households reduce their energy usage and their bills by conducting an energy audit and providing needed services such as insulation, heating system repairs or replacements, air leakage reduction and health and safety inspections (available year-round).

Payment Plans are available to customers unable to pay their past due charges. Regulated natural gas and electric companies are required to offer the “one-sixth” plan which requires six equal monthly payments on the past due amounts in addition to full payment of the customer’s current bill (available year-round). Utilities are required to offer another option in the winter months. The “one-third plan” which requires payment of one-third of the balance due each month (arrearages plus current bill) is available through Apr. 15. Utilities are encouraged to be flexible and go beyond the two required payment plans in order to help their customers stay connected.

Budget billing programs allow consumers who are up to date on their accounts to level their utility cost out over 12 months (available year round).

Some local non-profit agencies may also be a source of utility assistance. Consumers needing more information about any of the programs are encouraged to call the OCC at 1-877-742-5622 or visit our Web site at www.pickocc.org to learn more.

return to top 

OCC continues advocacy on electric security plans

FirstEnergy rates to decrease, AEP rates to remain same for early 2009

In December 2008, the Public Utilities Commission of Ohio (PUCO) agreed with several of the positions the Office of the Ohio Consumers’ Counsel (OCC) argued in FirstEnergy’s electric security plan proposal. As a result of the PUCO’s decision, generation rates would have been adjusted downward from the proposed rates, FirstEnergy would not be allowed to defer costs into the future and distribution rates would be decided in a separate case.

The modifications caused FirstEnergy to exercise its right to withdraw its application for the electric security plan. It asked the PUCO to continue its rates into 2009 as is. Under Ohio law, and a decision by the PUCO, adders called regulatory transition charges will be removed from rates. The OCC, along with several other consumer groups, advocated on behalf of consumers to ensure the charges were removed from bills as required.

Separately, American Electric Power will continue billing customers at current rates through February while the PUCO comes to a resolution on the company’s electric security plan.

New electric plan limits Duke to minimal increase

The Office of the Ohio Consumers’ Counsel (OCC) reached an agreement with Duke Energy Ohio, the Public Utilities Commission of Ohio (PUCO) staff and other parties that will limit electric bill increases to 2 percent in both 2009 and 2010. A proposed increase in 2011 has been eliminated. Duke had proposed to increase rates at least 5.7 percent over the next three years. Additionally, Duke will provide $1.75 million per year in low-income assistance, have improvements to electric system evaluated each year, have its earnings potential lowered on energy efficiency programs and develop a renewable energy certificate purchase program to encourage customer-sited renewable energy.

DP&L files for rate increases through electric security plan

Dayton Power & Light (DP&L) has requested to continue its current rate plan, which allows generation rates to go up each year through 2010, and add charges to customers’ bills related to energy efficiency programs.

The plan allows DP&L to continue to increase customers’ generation rates by 5.4 percent each year, as approved by the Public Utilities Commission of Ohio over the objections of the Office of the Ohio Consumers’ Counsel (OCC). In addition, a 7.5 percent generation rate discount currently received by DP&L residential customers would expire at the end of 2008.

The proposed new plan includes additional rate increases for Customer Conservation and Energy Management programs. These programs would be implemented over seven years and cost $616 million, including information technology upgrades needed to support the equipment. The technology could allow more timely communication between the utility and customer. The new meters would be installed at each home and business. The upgrades have the potential to help customers manage their usage and increase the reliability of DP&L’s distribution system.

The OCC is continuing to review DP&L’s proposal filed in October and will advocate for the interests of its residential customers.