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A message from Michael Watkins A message from Michael Watkins

Governing Board Chair Governing Board Chair

The Governing Board of the Office of the Ohio Consumers’ Counsel appreciates I thank Attorney General DeWine for his services to the Board and the Agency. And I appreciate the Attorney
this opportunity to present our 2017 Annual Report to the Ohio General General’s appointments of Regina Mitchell, J. Douglas Moormann, Andra Troyer, and David Wondolowski, as well
Assembly. The Annual Report includes a record of the participation of the Office as my reappointment in 2017. (Ms. Mitchell later resigned from the Board to devote her time to another project
of the Ohio Consumers’ Counsel (“Agency” or “OCC”) on behalf of Ohio utility that assists people in need.) We said farewell to Chair Gene Krebs – who served the Agency with distinction as
consumers in electric, natural gas, telephone, and water utility proceedings and Chair since September 2012 and as a member since December 2005– and to members Sally Hughes and Fred
an outline of other activities and expenditures. Yoder. They – and their colleagues on the Board – worked diligently in their public service to guide the Agency in
its services to Ohioans. The current Board and I will continue that commitment to Ohio consumers.
In 2017, the electric industry continued to hinder fulfillment of the Ohio General
Assembly’s vision, in the 1999 deregulation legislation, for Ohioans to be served The Board commends the dedicated service of our appointees, Consumers’ Counsel Weston and Deputy
by a competitive market for power plant generation. Electric utilities supported Consumers’ Counsel Sauer, and their hardworking staff. I thank Consumers’ Counsel Weston for his leadership
five legislative bills for making Ohioans subsidize coal or nuclear power plants. of the Agency, for seeking lower utility bills for Ohioans and for recommending the consumer protection of
The good news for consumers is that, to date, these legislative bills have not been competitive markets (where effective) instead of monopolies and subsidy charges. And I thank the members
enacted. Also, electric utilities continued to ask the PUCO to approve charging consumers for subsidies. And, of the Ohio General Assembly and the Governor’s Office for considering the Agency’s recommendations for
unfortunately, Ohio consumers continued to pay previously approved above-market subsidies in their monthly protection of Ohio utility consumers.
electric bills. This Annual Report includes a “subsidy scorecard” on the inside back cover, showing subsidies
paid by Ohioans for electric service since 2000. The Board looks forward to the Agency’s work with legislators, other public officials and stakeholders for the
benefit of Ohioans in 2018.
The Agency has been active in regulatory and legislative hearings to recommend consumer protection by Chair Watkins (right) and Vice-Chair Young (left) at a Board meeting.
enabling competitive markets and preventing charges for subsidies. In this regard, Representative Robert Cupp,
the Chair of the House Public Utilities Committee, kindly invited Consumers’ Counsel Bruce Weston to make
an informational presentation to the Committee on a consumer rate issue involving “electric security plans”
under the 2008 energy law. On this subject, the Consumers’ Counsel has been a strong supporter of House Bill
247, which would repeal the 2008 law allowing the electric security plans that have resulted in utility subsidies
at consumer expense. And H.B. 247 would enable refunds to consumers when the Ohio Supreme Court rules
that utility charges are improper. Utility consumers have been denied refunds of hundreds of millions of dollars
in improper charges in recent years. Also, we appreciate that Representative Cupp shared his time and insights
about legislation in a visit with the Board at our November meeting.

Other consumer issues in 2017 included the introduction of legislation supported by the telephone industry
that would, for customers of basic local telephone service, enable 20% annual increases and eliminate service
quality standards. This legislation can be problematic for rural Ohioans, older consumers and low-income
consumers. Legislation also was introduced to weaken, for water utilities that acquire other water systems, a
longstanding ratemaking standard for consumer protection. The Agency continued its consumer protection
activity regarding various natural gas issues including with regard to utility charges for pipeline infrastructure
replacement. And the Agency recommended that new electric grid modernization services for consumers,
especially on the customer’s side of the electric meter, should develop with competition (where effective) and
not through utility monopolies and subsidies. At the recommendation of the Governing Board, the Agency
developed and provided a legislative notebook to the General Assembly that describes utility consumer issues.

Consumers’ Counsel Weston (right) and Deputy Consumers’ Counsel Sauer (left) at a Board meeting.

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