In this issue:

• Natural gas prices - what to expect this winter
• Managing your natural gas bill
• Q&A: Do-Not-Call list facts
• Consumers hit by Internet virus billed for international telephone calls
• Tips to help protect consumers dialing up for Internet access
• Around Ohio - industry news around the state
• Convenient ways to pay bills can add up

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Natural gas prices – what to expect this winter

For the past four years, the entire nation has experienced escalating natural gas prices. A series of events and economic factors have driven prices to an all time high. Starting in the summer of 2000, which was abnormally hot, electricity was in high demand and in order to keep up with that demand, there was increased use of electric “peaking plants,” many of which are powered by natural gas. When demand for electricity increased that summer, additional natural gas supply was used to meet it.

In November and December 2000, record cold temperatures, combined with the supply strain caused by the previous summer's natural gas consumption, left consumers paying up to 70 percent more for natural gas than in 1999.

Since then, additional factors have contributed to the escalating cost of natural gas. While the Office of the Ohio Consumers’ Counsel (OCC) cannot predict what this winter will bring, natural gas prices are likely to remain high.

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Factors affecting this winter season's natural gas prices:

Price – This year, world oil prices have dramatically increased. Uncertainty in the Middle East and Russia and the current economy are just some of the factors that have caused prices to rise. Because many large industrial customers can interchangeably use oil and natural gas as a fuel source, the prices for these two sources of energy tend to be closely linked. Therefore when oil prices increase, natural gas prices also increase.

Weather – While this past summer was cooler and the nation did not experience the same strain on natural gas supplies as it had in 2000, the natural gas that was bought and stored for this winter was purchased at higher prices than in previous summers. The temperature outside will play a significant role in whether prices rise this winter and if so, by how much. If the nation experiences another extremely cold winter, an increased strain on natural gas supplies could cause prices to increase.

Limited Production and Supply – Prior to 2000, the nation had experienced a number of mild winters, which created a natural gas surplus. The surplus caused natural gas prices to fall. As prices stayed low, natural gas production became less profitable and exploration and drilling slowed dramatically. Although natural gas exploration and drilling generally increases as demand increases, there is a 12 to 18 month lag between increased drilling and having a larger supply of natural gas. In addition, new, deeper natural gas wells are less productive than the older, smaller wells.

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Managing your natural gas bill

Utility customers have several options for managing their natural gas bills. The OCC offers the following free resources to help reduce their heating costs:

Natural Gas Choice – Customers of Cincinnati Gas & Electric, Columbia Gas of Ohio, Dominion East Ohio and Vectren Energy Delivery of Ohio have the opportunity to shop for a competitive natural gas supplier. The OCC offers many free tools including Comparing Your Energy Choices, a weekly updated list of natural gas suppliers and their offers; Calculating Your Energy Choices, an online calculator to help consumers compare supplier offers and any potential savings; and Gas Choice 101, a complete guide to choosing a supplier, questions to ask and consumer protection information.

Budget Billing – Each utility company has a budget billing program that spreads consumers’ natural gas expenses evenly throughout the year.

Energy Efficiency – The OCC offers a free room-by-room energy efficiency guide that provides no and low cost tips for lowering your winter heating bills.

Financial Assistance Programs – Several programs are available to help keep Ohioans warm this winter. For example, low-income consumers can apply for the Home Energy Assistance Program (HEAP) and the Percentage of Income Payment Plan (PIPP).

Publications about these and other programs can be found on the OCC’s website at www.pickocc.org or by calling 1-877-PICKOCC (1-877-742-5622) toll free.

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Q&A: Do-Not-Call list facts

Q. Can I still register for the national Do-Not-Call list?

A. Yes. The Do-Not-Call list is free and can be accessed online at www.donotcall.gov or by calling toll free at 1-888-382-1222. Consumers can register their home telephone, fax, pager and cell phone numbers at any time. Once a number is registered, it can take up to 90 days for it to be removed from telemarketers’ calling lists.

Q. If I registered last year, do I need to renew my registration this year?

A. No. Registration of a number lasts for five years, at which point it can be renewed. If you change telephone numbers, be sure to register your new number if you want to continue to receive fewer telemarketing calls.

Q. Telemarketers have continued to call despite my registration. How is this possible?

A. While the national list can prevent unwanted telemarketing calls made by most companies, charities and political organizations are exempt. In addition, if you have an “established business relationship” with a company (for example, you pay a bill to them every month) they may continue to call you.

If you have been on the Do-Not-Call list for 90 days and a business calling your home does not fall into one of these categories, it may be in violation of federal and state telemarketing laws and rules.

Q. How can I file a complaint against a violator of the telemarketing rules?

A. Complaints can be filed by calling the Ohio Attorney General’s office toll free at 1-800-282-0515 or online at www.ag.state.oh.us. The Attorney General may seek civil penalties against telemarketers who violate the Do-Not-Call list.

Be sure to document as much information about the call as possible, including the date and time of the call.

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Consumers hit by Internet virus billed for international telephone calls

Consumers accessing the Internet by dialing through their telephone lines should be aware that scams causing hundreds of dollars in international long-distance charges continue to plague some households in Ohio and across the nation.

The scams operate while consumers are surfing the Web using local dial-up telephone numbers. While online, computers are being loaded with one or more programs containing viruses. These programs force a computer to disconnect the telephone line from the local dial-up number and reconnect to an expensive international telephone number. Consumers may not recognize the problem until they receive their long-distance bill.

The OCC has assisted dozens of consumers across the state who have reported unauthorized charges. A consumer near Marietta was billed approximately $275 for unauthorized calls made to Tuvalu, a tiny island in the South Pacific. A Huron County consumer reported over $325 in charges from Niue, another remote Pacific island.

While some long-distance companies have issued one-time credits to customers who have fallen victim to this scam, other companies may not be willing to make any adjustments. The law does not require long-distance companies to issue adjustments, so customers may be responsible for these charges. The OCC advocates for goodwill credits on behalf of customers.

The OCC is continuing to research these issues and advocate for residential consumers who have fallen victim to an Internet dialing scam.

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Around Ohio - industry news around the state

DP&L customers can enroll in new electric choice program

The Office of the Ohio Consumers’ Counsel, the Public Utilities Commission of Ohio, Dayton Power & Light (DP&L) and other organizations have joined together to create a buying pool that may allow customers in the Miami Valley to save money on their electric bills. This program is voluntary and will create a buying pool in the hopes of finding competitive electric suppliers for participating customers.

DP&L customers initially received information with their October electric bills. In November, customers received a notice in the mail about the opportunity to participate in this program. Customers will have until December 1, 2004, to sign up for the program by mail or telephone.

After the sign up period is over, competitive suppliers will have an opportunity to place bids and beat DP&L’s price of electricity. If a lower price is achieved, participating customers automatically will be switched after being given the ability to “opt out,” or be removed, from the offer.

If the program cannot offer savings by August 2005, customers will not be switched and the program will end. Under the buying pool program DP&L will continue to deliver the electricity into all of its customers’ homes and mail the monthly electric bill.

Dominion East Ohio explores stopping natural gas sales

Dominion East Ohio is in the process of considering whether it will continue to sell natural gas to its customers through a regulated rate. Currently Dominion sells natural gas as well as delivers it to consumers’ homes. With about half of its residential customers purchasing natural gas from competitive suppliers through the choice program, Dominion has discussed focusing solely on the service of distributing natural gas through its local pipelines to customers’ homes. The Office of the Ohio Consumers’ Counsel (OCC) has been involved in these discussions and wants to ensure that any change will produce customer benefits and not cause consumers any harm.

No decision has been made by Dominion and any proposal to end selling natural gas to customers would first require approval by the Public Utilities Commission of Ohio before going into effect.

This potential change could impact which company supplies natural gas to customers and the rates they pay. Regardless of Dominion’s decision, consumers will not experience any interruption in their natural gas service. The OCC will be involved throughout any transition to educate consumers about the process and how they will be impacted, provide tools they need to make informed decisions and answer any questions they have.

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Convenient ways to pay bills can add up

In order to assist consumers in picking an affordable, convenient payment option that best meets their needs, the Office of the Ohio Consumers’ Counsel (OCC) researched payment options offered by utility companies.

There are several ways to pay utility bills including over the telephone, through bill paying services, automatic withdrawal from a checking or savings account or the Internet. Using this information, the OCC has developed free fact sheets for the electric, natural gas and telephone industries that outline information about these services including:

• Fees associated with more convenient ways to pay bills. For example, many utility companies will charge up to $5.95 each time a customer makes a payment online or over the telephone. There also may be fees associated with automatic bank deductions.

• The amount of time it takes for the payment to be processed by the company. Many times there is a delay from when the information is received by the company to when the payment is actually posted. Making a payment in person, over the telephone or online does not guarantee that the payment will be posted that same day. By law, payment centers and "authorized agents" will accept and post payments within one business day.

• The use of bill payment services like BillPayer 2000 and Checkfree to manage customer utility bills online may be convenient, but come with service fees and and may take up to five days to post to customer accounts.

• Security concerns when making online payments. Consumers are urged to use extreme caution when making any financial transactions over the Internet. Some tips include always using a secure Internet site that will scramble financial information and read any privacy notices before providing personal information on the Web.

The “Paying utility bills – the cost of convenience” fact sheets also have a detailed chart that allows consumers to compare different payment types, where payments can be made, fees and applicable processing times for each utility company. This information will be updated several times a year. Detailed definitions of terms used on the chart also are provided.

Consumers should remember to ask the utility company about any applicable fees that are charged and the amount of time it takes to process payments before signing up for any service. Also, consumers who are facing disconnection should pay their bill in person at an authorized agent.

The fact sheets can be received by calling the OCC toll free at 1-877-PICKOCC (1-877-742-5622) or online at www.pickocc.org by visiting the fact sheet section under each industry.