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April
marks the two year anniversary since Janine Migden-Ostrander took the oath
as Ohio's Consumers' Counsel. The Office of the Ohio Consumers' Counsel
(OCC) has worked vigilantly to protect residential utility customers against
rate increases. Within the last two years, the OCC achieved more than $400
million in benefits for residential utility customers through the agency's
participation in cases at the Public Utilities Commission of Ohio (PUCO).
2005 case highlights include:
An agreement among the OCC, Cincinnati Gas & Electric (CG&E), the PUCO staff and nine other parties reduced a proposed electric distribution rate increase by approximately 33 percent. The joint agreement, approved by the PUCO, resulted in about a $26 million reduction from CG&E's original requested increase of $78 million.
In late 2002, a biennial management performance audit was conducted by the PUCO to review Vectren Energy Delivery of Ohio's gas purchasing practices and the rates it charged consumers from November 2000 through October 2002. Through its own analysis, the OCC supported the audit recommendations for over $5 million to be credited to customers. Beyond the audit recommendations, the OCC showed that an additional $4.5 million was due to customers. In 2005 the Commission agreed with the OCC's position and ordered a total credit to customers of almost $8 million. The credits will be treated as an adjustment to Vectren's future regulated gas rate, which changes each month.
The OCC, along with several low- income consumer groups, secured $25 million for energy efficiency programs in FirstEnergy's service territories, in an effort to resolve a fuel cost-related rate increase request by the company. The funds will cover, for example, home energy inspections and appliance upgrades and replacements. The programs would meet the federal ENERGY STAR standards and pass a test designed to determine whether benefits would outweigh costs. The programs would save consumers money by lowering their usage.
Additionally, the OCC continued to be involved in major case work including litigating the rate plans of American Electric Power, Cincinnati Gas & Electric and FirstEnergy all the way to the Ohio Supreme Court. The OCC firmly believes the plans, which went into effect on January 1, 2006, violate the electric choice law and do not provide benefits for customers. The OCC also opposed the mergers of SBC and AT&T; Verizon and MCI; and Cinergy and Duke because they were not in the best interest of the public as required by Ohio law.
Proposed rules that would enable companies to increase the rate for basic local telephone service up to 20 percent per year also was on the OCC's long list of important cases in 2005. With few choices in providers offering basic local telephone service, the OCC remains concerned that customers will be forced to pay higher prices for packages of services they do not want or drop their telephone line altogether.
The OCC was active at the Ohio General Assembly, monitoring utility-related legislation and testifying before several House and Senate committees. Last year, Migden-Ostrander provided testimony on the status of electric restructuring, rising natural gas prices and long-term energy solutions, the benefits of mandating energy efficiency programs for state office buildings, potential rate increases on basic local telephone service, monthly natural gas meter readings during the winter heating season and the need for a state energy policy.
Over the next year, the OCC will continue to protect residential utility customers against unfair practices in the utility marketplace, provide them with options for improved services and empower them to take control of their energy and telecommunications needs. Through the OCC's advocacy, the agency strives for solutions that are enduring, and can provide customers with affordable and reliable service not only now, but into the future.As the Office of the Ohio Consumers' Counsel (OCC) celebrates 30 years of advocacy to Ohio's residential utility consumers, its accomplishments date back to its very beginning.
From Ohio Supreme Court victories to saving consumers millions of dollars, the OCC used its first 10 years to level the playing field and give residents the necessary protections they deserve.
It took only two years for the OCC to become a leading force in the establishment of consumer protection laws after it was created in 1976 by the Ohio General Assembly. The OCC played a major role in cases at the Public Utilities Commission of Ohio that helped form utility payment programs, establish service disconnection and reconnection rules, as well as achieve rate reductions for residential consumers.
The OCC also helped consumers save more than $786 million in utility costs during its first 10 years, including a $600 million settlement with Columbia Gas Transmission, which may have produced the largest single gas rate decrease in U.S. history prior to 1985, according to the OCC's 1986 Annual Report. The advocacy continued throughout the decade as the OCC convinced the state's highest court to hold investor-owned utilities accountable on multiple occasions for their missteps and prohibited the companies from passing on certain costs to consumers.
Today, the OCC continues to save Ohioans money and protect their rights at a time when competitive energy markets and advanced telecommunications options continue to change. As the OCC enters its fourth decade of advocacy, the efforts to ensure quality service, savings and safeguards for consumers remain unwavering.
This is the second 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.
For years, residential consumers have had access to directory assistance by dialing 4-1-1 while the vast majority of Ohioans can call for emergency services by dialing 9-1-1. These numbers are well known and easy to remember, but consumers may not be aware that additional three-digit combinations have been created to allow for other assistance services. Not all consumers are currently able to access all of these newer numbers, however their development has been growing in many parts of Ohio.
2-1-1 for community services - Some communities have developed 2-1-1 as a way for residents to receive referrals to many resources, from housing assistance and alcohol counseling to senior citizen programs and mental health services. Over half of Ohioans currently have access to a 2-1-1 service and more are expected to gain the feature in 2006. For more information, visit www.211ohio.net.
3-1-1 for government services - While 9-1-1 continues to be the resource for emergency situations, dialing 3-1-1 is helping connect residents to non-emergency government services. Residents can, for instance, report a pothole or complain about noise-related violations. In Ohio, 3-1-1 is available in limited areas, including Akron and Columbus.
5-1-1 for traffic information - This feature allows consumers to receive route-specific traffic information. 5-1-1 has been fully deployed in 20 states. In Ohio, many consumers in the Cincinnati area currently have access to this service. For more information, visit www.deploy511.org.
6-1-1 to report telephone problems - This service allows a consumer to request the repair of a telephone line. A report using 6-1-1 can be made from the consumer's own line, a neighbor's telephone or a payphone. In Ohio, dialing 6-1-1 is typically free of charge and available to customers of Alltel, Cincinnati Bell, CenturyTel, Chillicothe Telephone and Western Reserve.
7-1-1 to reach services for the deaf or hearing impaired - By dialing this three-digit code, a consumer can reach the Telecommunications Relay Service, which allows voice calls to be interpreted by devices used by the deaf and hearing-impaired community. All telephone companies nationwide are required to make 7-1-1 available.
8-1-1 to call before digging - While 8-1-1 has typically been used to connect to a telephone company's business office, it will soon be used in Ohio and nationwide for providing advance notice before digging is performed. This allows work to be performed safely by taking into account any underground utility lines. This is similar to the "call before you dig" service currently used by contractors and consumers.
Most of the above services are free of charge to dial, however some may not be available when using a cellular phone or Internet-based telephone service (known as VoIP, or Voice over Internet Protocol). Certain three-digit dialing codes may not be available if a consumer receives local service from a competitive provider.
While the services are at different stages of development in Ohio, residential consumers can look forward to these convenient ways to reach important service providers.
What you should know about your electric rates in 2006 - As many Ohioans may have noticed, electric rates increased beginning January 1 for the first time in over five years. Information in this publication includes how long these rate plans will be in effect, what the average amounts are that consumers will be paying due to the increases and what the OCC believes the increases will do to the development of the competitive market.
The Energy Policy Act of 2005 - In 2005, the federal government passed a law that allows consumers to file for tax credits on certain energy efficient home improvements and upgrades such as replacement windows, furnaces and other appliances. It also lists household products that will be receiving new energy efficient manufacturing standards. This publication outlines the amount of the credits, the items that qualify, and will be updated as more information about filing for the credits becomes available.
To request a copy of these or any of the OCC's free educational fact sheets, consumers can call toll free at 1-877-PICKOCC (1-877-742-5622) or view them online at www.pickocc.org under "Consumer Publications."
The bulk of Ohio's electricity is generated using coal. Due to environmental concerns, increasing regulations to reduce air emissions have been imposed and more regulations are looming in the future. This has increased the price of coal. Clean coal technologies are being explored and studied for deployment in Ohio, however, it is still experimental and expensive. There are some power plants that use nuclear power to generate electricity, but almost every new power plant that has been built since 1990 uses natural gas.
With fossil fuels being used for many purposes, there is a possibility of future generations facing either a shortage or even the depletion of these resources. This means that now is the time for consumers to start looking toward using alternative sources of energy for heating, cooling and electricity.
There are four main types of renewable resources that are currently being used to create energy. Those resources are:Over the next several issues of "Consumers' Corner," the Office of the Ohio Consumers' Counsel will present a series offering information about renewable resources that are being used for energy throughout Ohio and the United States. Some of the information that will be included is the outlook for use of these resources in Ohio and the United States and some of the pros and cons of each option.
For more information on renewable energy sources, visit www.pickocc.org and click on "Electric" and "Smart Energy." Consumers may also call toll free at 1-877-PICKOCC (1-877-742-5622) to receive information by mail.
Q. Why
have I seen fewer companies advertising traditional home telephone
service?
Q. Why aren't more choices available for basic local service?
A. Nearly all of the available home telephone choices from competitors involve "bundles," which often contain the ability to make and receive local calls, a variety of features such as Call Waiting and long-distance minutes. Most competitors have not been trying to attract customers who want only basic local telephone service - a dial tone without features or long-distance minutes.Q. Do all residential consumers have local telephone choices?
A. No. While consumers in areas traditionally served by AT&T Ohio (formerly SBC) and Verizon have some choices, many other customers have few, if any, competitive options. Reasons for the lack of competition range from the cost to competitors (which varies among service areas) to geography. Serving residential customers in rural areas typically has not been as profitable as serving dense, urban areas that include many high-usage business customers.Q. Aren't cellular, cable and Internet-based companies providing competition?
A. Currently, the Office of the Ohio Consumers' Counsel does not believe that these services are equal substitutes for traditional home telephone service. For example, depending on the type of provider, customers may not have service during an electric, cable or broadband outage. Customers with some companies may not currently receive Enhanced 9-1-1 (E 911) service, which automatically displays a caller's location to emergency authorities. In addition, cellular and Internet-based companies do not need to comply with Ohio's telephone- related consumer protections (known as the Minimum Telephone Service Standards) and their services are not necessarily available everywhere in the state.