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Comprehensive energy efficiency programs would lower electric bills

During the summer months, using large amounts of electricity may cause many residential consumers to receive high bills for the cold breeze that comes out of their air conditioning vents. High usage also can put a strain on a local electric utility’s network of wires, equipment and generators. The Office of the Ohio Consumers’ Counsel (OCC) believes that comprehensive energy efficiency programs can help lower bills and improve the reliability of a utility’s system.

Beyond the automatic decrease in customers’ bills when they use less electricity, other factors make energy efficiency important. When less electricity is used, the local utility may be able to avoid buying extra power through the wholesale market, where prices are typically high in the summer. Reducing usage (known as demand) also can help avoid the building of expensive new power plants. These factors can add to customers’ short and long-term savings.

Since energy efficiency programs cost money to get off the ground and be maintained, the OCC believes that they should pass a test designed to determine whether program benefits would outweigh costs.

For example, Duke Energy (formerly Cincinnati Gas & Electric) has worked with the OCC and other stakeholders to develop a plan that, if approved by the Public Utilities Commission of Ohio, could save the average residential consumer approximately $3 for every $1 invested.

The demand for electricity can be managed in several ways that do not disturb consumers’ lifestyles or require that they be uncomfortable during hot summer days. To illustrate the types of programs needed as part of an electric energy efficiency program, examples from the Duke Energy proposal include:

  • In-home energy audits to provide residential consumers the most cost- effective ways they can improve the efficiency of their home. From insulation to appliance upgrades, consumers would be shown which areas should be targeted to help lower their usage.
  • Incentives for air conditioner tune-ups and for purchasing energy efficient central air conditioners and heat pumps. These rewards would help ensure that one of consumers’ largest uses for electricity is running efficiently.
  • A voluntary “load control” program that would provide consumers with incentives for allowing the utility to turn off the condenser in their air conditioners for brief periods when electricity is in high demand. The condenser is the system that cools the air and is separate from the fan, which can remain on. A participating consumer would likely experience just a temporary one or two degree rise in the home’s temperature and would have options as to the maximum length of time the interruption would occur.
  • Rebates for purchasing Energy Star products at local stores. Products qualifying to use the Energy Star logo meet federal energy efficiency standards.

Another factor that emphasizes the need for energy efficiency is the increasing price of electricity. More stringent environmental standards have been put in place. More than likely, new regulations will be implemented that control the amount of carbon dioxide released by power plants. These new rules help the environment but cost the utilities (and consumers) money to comply.

Analysis shows that it is cheaper to reduce the usage of electricity than to buy more power, especially at potentially higher prices in the future. With lower bills and a more reliable electric system as its goal, the OCC will continue to advocate for comprehensive programs designed to reduce consumers’ electric usage.

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OCC advocacy strengthens in second decade

The Office of the Ohio Consumers’ Counsel (OCC) built a solid foundation during its first 10 years of service that paved the way for achieving consumer benefits and earned the respect of those in the utility industry. As the OCC advocated for additional rules and laws to protect the interests of consumers in the following decade, it was clear that the state’s watchdog was playing an important role in the regulation of Ohio’s public utilities and was here to stay.

Opposing utility requests for rate increases made up the bulk of the OCC’s casework in the 1980s. One request by Cleveland Electric Illuminating and Toledo Edison would have increased rates by more than 30 percent. But the OCC, along with a coalition of other consumer groups, pulled together a convincing case against the proposed rate hike and the Public Utilities Commission of Ohio (PUCO) denied the companies’ application.

Precedent-setting cases and other consumer firsts were achieved as the OCC’s mantra of advocacy forged ahead. The paths laid to create a competitive market for basic local telephone service and to help establish forward-thinking programs for energy conservation were just a couple of the successful efforts that have increased utility choices for consumers today. The OCC also played a significant role in the establishment of consumer protections relating to disconnection notices, billing and metering for the state’s new minimum water quality standards in 1991.

As a way to avoid building more costly power plants for new generation, the first long-range energy efficiency program in Ohio was secured for consumers in 1989 by the OCC. The pact with Cincinnati Gas & Electric required the utility to initiate programs to explore ways to reduce electric demand through conservation, energy saving technology and time-of-day rates, among others. A similar agreement was signed with Dayton Power & Light to reduce customer usage a year later.

Changes in leadership also occurred for the OCC during this period. Consumers’ Counsel William Spratley resigned from his post after 17 years, an unprecedented tenure for a consumer advocate. An extensive search to replace Spratley ended in February 1994 when the OCC Governing Board selected Robert Tongren as the new Consumers’ Counsel. Tongren continued to advocate on behalf of consumers until 2003.

As the OCC works toward helping to develop competitive energy markets coupled with the advancement of a variety of telecommunications options, there is potential for even greater achievements.

This is the fourth in a series of stories about the Office of the Ohio Consumers’ Counsel in celebration of its 30-year anniversary. Visit the OCC website at www.pickocc.org to view photos and read additional information about the agency’s history.

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OCC is in your corner

Each issue of Consumers' Corner, the OCC will highlight some of its latest accomplishments and activities through this new column.

  • The Office of the Consumers’ Counsel (OCC) recently received a victory at the Ohio Supreme Court. In a court decision, a portion of the FirstEnergy rate plan was sent back to state regulators as unlawful. Specifically, the court found that the Public Utilities Commission of Ohio (PUCO) did not follow the law when it failed to offer a price to customers determined by a competitive bid. The OCC also presented an oral argument on a Duke Energy (formerly Cincinnati Gas & Electric) rate plan, advocating to the Supreme Court that it is unlawful.
  • The OCC recently presented oral arguments in two additional appeals at the Ohio Supreme Court. One appeal asks the court to overturn a PUCO decision approving Dayton Power & Light (DP&L) to charge customers $16 million plus interest in billing system costs. The OCC contends the charge violates three agreements the company signed.

    The second case involves PUCO decisions that permitted DP&L and FirstEnergy to defer the collection of higher transmission rates incurred during a time when electric rates were to be capped under Ohio’s electric choice law. The OCC believes the deferrals and collections of the transmission costs are unlawful.
  • An agreement between the OCC and Duke Energy will provide benefits to residential consumers and resolve an Ohio Supreme Court appeal of the PUCO’s decision approving the recent merger. Benefits include $1.25 million in weatherization funding by Duke, a green energy option for residential customers and an agreement by Duke to withdraw cases at the PUCO that could have imposed extra charges.

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Lesson No. 2
Renewable energy resources - solar power

Electricity can be generated in many ways, including the sun. There are two main ways to capture the sun’s rays to produce electricity – photovoltaic cells and mirrors concentrated on power plants. The sun also can be used to heat your home and water through direct gain.

A photovoltaic system is a panel of tightly woven cells that absorbs sunlight. When the sun’s rays hit the photovoltaic cells, electrons are released and collected to create energy. Electricity also can be generated through an electric thermal generation power plant. In this case, heat is collected from the sun’s rays by using mirrors, called Heliostats, to direct the sun’s heat. This heat helps to generate steam that is used to create electricity. Some individual buildings are heated by the sun through passive solar heating, where stored heat from the day warms a building at night. A building’s structure is used to generate heat through a process called direct gain. These homes have large south facing windows that allow the sun’s heat to enter into the home, where it is stored in the building’s mass.

Ohio has many buildings that use solar power. In northern Ohio, Oberlin College is home to the Adam Joseph Lewis Environmental Studies Center. The college recently constructed solar panels on the roof of an existing parking pavilion. This installation is expected to generate enough electricity to supply the needs of 15 single family homes. In central Ohio, Green Energy Ohio was instrumental in installing solar panels on the roof of the carriage house at the Governor’s Mansion. This system has generated over 4,500 kilowatt hours of electricity.

In addition, Ohio companies produce solar panels and other materials needed to use solar power.

To learn more about solar power, contact the OCC toll free at 1-877-PICKOCC
(1-877-742-5622) or visit “Controlling Your Energy” at www.pickocc.org.

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Avoiding the summertime blues

The need to stay cool means consumers often use more electricity in the summer months, resulting in higher bills than during other times of the year.

The Office of the Ohio Consumers’ Counsel (OCC) offers the following tips:

  • Close the drapes while the sun is shining directly into the home.
  • Use bathroom and kitchen ventilation fans sparingly to avoid pulling out cool air.
  • Consider having a professional tune up your central air conditioning system, especially if it is several years old. A professional can check the efficiency and make sure it is running properly.
  • Keep the refrigerator and freezer away from direct sunlight and from appliances that release warm air such as the oven and dishwasher.
  • On cooler days, open windows and use fans. Be sure to close the windows in all rooms when using the central air conditioner. Water can also be a precious commodity during the summer months. Consumers can take the following steps to use it more efficiently:
  • When watering the lawn, try to water during cooler times of the day. Watering in the early mornings or late evenings helps avoid rapid evaporation.
  • Repair any leaky outside faucets or spigots and patch or replace any torn water hoses.
  • Position sprinklers so the water hits the plants and grass instead of the sidewalk and driveway.
  • Use a broom instead of a watering hose to clean debris off the sidewalk, porch, driveway and gutters.

For more energy and water efficiency tips, or to receive a copy of the OCC’s Smart Energy Tips and a Guide to Water Conservation visit www.pickocc.org or call 1-877-PICKOCC (1-877-742-5622) toll free.

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Advocates work to safeguard your personal information

With the privacy of customer information a huge concern, consumer advocates around the United States, including the Office of the Ohio Consumers’ Counsel (OCC), are advocating that this information should be made more secure.

Customer information increasingly has been obtained by companies that use a practice called “pretexting,” where consumers’ information is unlawfully acquired without consumers’ knowledge or consent.

If, when and how information about customers’ telephone habits should be released are among the issues of personal privacy under review by the Federal Communications Commission (FCC). This includes the personal information that local, long distance and wireless companies collect, including the numbers consumers call, when they call those numbers, the telephone services used and the information provided to companies to establish service.

The National Association of State Utility Consumer Advocates (NASUCA), of which the OCC is a member, has urged the FCC to safeguard customer information from those that may fraudulently try to acquire it. NASUCA has proposed five basic principles for the FCC to consider:

  1. Consumers should be notified before any personal information is collected.
  2. Information cannot be disclosed to third parties without a customer's express consent.
  3. Information collected by companies must be accurate and secure to guard against loss and any unauthorized access, use or disclosure.
  4. Consumers should be able to access their information and be able to correct any errors.
  5. Enforcement measures must be in place to ensure companies adhere to proper protocols.

Currently, telephone companies may use customer information without the customer’s consent to provide emergency services, for billing and collection of services the company provides, and to market services to customers who call the company. Companies must get customers' permission to use their information for any other reason.

Along with the FCC’s review, Congress is seeking to pass legislation to prohibit the sale or receipt of telephone records obtained illegally and to make unlawful transfer of the records a criminal offense.

The OCC believes it is important that consumers know what type of information is being collected and how it is being used.

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Q & A: Summer Utility Assistance

Q&AQ. I know that there is a program in the winter to help with heating bills. Is there a similar program in the summer to help offset the costs of staying cool

A. The Ohio Department of Development (ODOD) offers the Summer Crisis Program. This program assists households by making a one-time payment of no more than $200 toward their electric bill or by purchasing an air conditioner for the home. Some households may qualify for both types of assistance.

Q. What are the eligibility requirements for the Summer Crisis Program?

A. For either type of assistance, households must have an annual income that is at or below 175 percent of the federal poverty guidelines. To receive payment assistance for an electric bill, households must either have a member that is 60 years of age or older or one that has a medical necessity, documented by a doctor. To receive an air conditioning unit, the household members must provide documentation by a physician of a medical necessity, regardless of age and must not have received air conditioning units through this program in 2003, 2004 or 2005.

Q. Is there a form that I can complete and send in myself to apply for assistance?

A. You are not able to apply for this assistance on your own. If you wish to apply to receive the electric assistance, the air conditioner or both, you must schedule an appointment at your local community action agency.

Q. Who should I contact for more information about the Summer Crisis Program or additional utility assistance?

A. For information about the Summer Crisis Program, you can call or visit your local community action agency or contact ODOD at (800) 282-0880. You also may contact the Office of the Ohio Consumers’ Counsel (OCC) toll free at (877) 742-5622. The OCC can provide you with information on additional utility assistance programs that are available.

Information believed accurate but not guaranteed.
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