Office of the Ohio Consumers' Counsel

• Press Releases
• Press Kit
• Weston Biography & Photos
• Information Requests & Feedback
• Story Ideas
• Archives

return to top 

The '70s and '80s paved the way

In the years since the Office of the Ohio Consumers' Counsel (OCC) was formed in 1976 several accomplishments have been realized for the residential customers of Ohio’s investor-owned utilities.

In 1977, Bill Spratley was named the state's first Consumers' Counsel. That same year the OCC assisted the Ohio House of Representatives on legislation to bring uniform disconnection policies. The bill (Substitute House Bill 376) provided for consumer dispute procedures, a mandatory extended payment plan, disconnection notices, as well as guidelines for utility companies to carry out disconnections. By 1980, an OCC victory could be declared when statewide disconnection procedures became effective.

The OCC also was able to aid in the creation of a Percentage of Income Payment Plan, commonly known as PIPP, for low-income consumers. PIPP was created in 1983 to help reduce disconnections of natural gas and electric services. Its development began with orders by Gov. James Rhodes and the Public Utilities Commission of Ohio that placed a moratorium on utility disconnections because of an extremely cold winter in 1982-1983. The program is a payment arrangement for customers with income at or below 150 percent of the federal poverty guidelines who pay a percentage of their monthly household income to the company providing the utility service.

During the 1980s the OCC worked to gain a system-wide uniform rate for all communities served by Columbia Gas of Ohio. The company had a practice of setting different rates for each municipality in its territory. The OCC charged that this practice caused exorbitant profits at the expense of residential consumers.

It took two coalitions comprised of 121 municipalities and an OCC complaint against Columbia’s excess profits and high rates to start working toward a uniform rate. In 1989, the 12-year dispute against rate discrimination ended when a uniform rate was established for almost all of Columbia Gas’ residential customers.

There were many cases the OCC became involved with that saved Ohio’s residential consumers hundreds of millions of dollars in the 1970s and ‘80s. For instance, refunds were issued to Northeast Ohio residents in 1988 in the amount of $568 million because of mismanagement and cost overruns at the Perry nuclear power plant. Consumers of Toledo Edison and Cleveland Electric Illuminating also were refunded $61.3 million in 1987 because state regulators ruled that a June 1985 accident that shut down the Davis-Besse nuclear power plant was caused by utility mismanagement.

Representation by the OCC led to a 1985 settlement with Columbia Gas Transmission saving consumers $600 million. At that time, the pact may have produced the largest single natural gas rate decrease in U.S. history.

The efforts of the OCC in the natural gas industry also resulted in an agreement with Columbia Gas in 1986 that called for a rate reduction and rate freeze that accounted for at least $21 million in savings for the utility’s 2 million residential customers.

In the telecommunications industry, new minimum telephone service standards (MTSS) the OCC had advocated for since 1983 were adopted by the PUCO in 1988. The new standards were the first major revision of service standards since the 1950s.

The MTSS rules set higher standards for telephone transmission, dialing, voice quality, customer service, repairs and other aspects of telephone service.

The OCC also played a leading role to secure refunds for Cincinnati Bell Telephone customers totaling more than $23 million in 1986. Cincinnati Bell sought to raise rates to compensate for depreciating telephone equipment. But the OCC appeal to the Ohio Supreme Court reversed a Cincinnati Bell rate hike for the third time in less than two years.

The OCC’s mission of representing and educating residential utility consumers was well on its way to becoming a reality with the objectives realized in the 1970s and 1980s.

return to top 

The '90s: OCC worked to lower rates and educate consumers

The 1990s brought many utility issues and changes to the Office of the Ohio Consumers' Counsel (OCC) including rate fluctuations, electric restructuring, natural gas choice, telecommunications privacy issues and an agency initiative to educate and inform consumers about utility issues.

In a 1990 audit, the OCC discovered several ways for Toledo Edison and Cleveland Electric Illuminating to reduce expenses to the tune of approximately $98.2 million, which significantly lowered scheduled rate hikes for those customers.

From 1990 through 1993, the OCC became involved in the debate over whether Caller ID violated a caller’s right to privacy. The agency argued that Caller ID would reveal unlisted telephone numbers and cause many consumers to be reluctant to place confidential calls. The OCC also stated that the cost for the service and equipment was beyond the reach of many consumers who needed it the most. Despite these claims, many companies began marketing Caller ID and for a fee allowed consumers to block their information from appearing. The '90s: OCC worked to lower rates and educate consumers

In 1994, the OCC began a new era under the leadership of Rob Tongren. During his first year as Consumers’ Counsel, the agency provided input to the Ohio Congressional delegation about consumer safeguards that were to be re-written in the Communications Act of 1994.

Beginning in 1997, Columbia Gas customers in Toledo were able to choose which company supplied their natural gas through a natural gas choice pilot program. The OCC played an active role in educating consumers about natural gas choice beginning in 1996 as part of a collaborative effort with Columbia and state regulators. By the end of 1997, nearly 50,000 Columbia customers had switched to a new supplier, causing the company to open its natural gas program to all its customers. Throughout 1997, customers of East Ohio Gas and Cincinnati Gas & Electric started natural gas choice programs as well.

The electric industry heated up in 1998 when legislation was introduced that would restructure Ohio’s electric market in an attempt to foster the development of competition. The OCC participated in stakeholder meetings and stressed three areas it believed should be the basis for electric restructuring – effective competition, lower rates and quality service.

In 1999, OCC advocated that the SBC/Ameritech merger needed to ensure benefits for residential consumers. The OCC successfully argued for the agreement to include a rate freeze, increased discounts for competing companies and for SBC to offer local telephone service outside of its own service area.

return to top 

2000-2006: OCC enters a new era of advocacy

The telephone industry underwent a major change in 2001 when the Public Utilities Commission of Ohio (PUCO) allowed Ohio’s major telephone companies to apply for “elective alternative regulation.” This permitted telephone companies to request the ability to raise rates for certain features without further approval from the PUCO. The Office of the Ohio Consumers' Counsel (OCC) called on consumers to voice their opinions to the PUCO which resulted in more than 6,600 letters opposing the potential rate increases. The OCC’s advocacy efforts persuaded the PUCO to cap rates for basic Caller ID and limit increases for certain features.

The year 2003 brought the implementation of the national Do-Not-Call list. Through a partnership with State Senator Robert Spada and Attorney General Jim Petro, the OCC strongly supported both the national program and Ohio legislation to help consumers diminish unwanted telemarketing calls.

The OCC entered yet another era in 2004 with the arrival of Janine Migden-Ostrander as Consumers’ Counsel. Bringing a wealth of ideas and knowledge with her, Migden-Ostrander focused the agency’s efforts on assisting consumers in managing their utility costs. This has been done through energy efficiency initiatives in both electric and natural gas and by promoting the need for statewide renewable energy portfolio standards. Additionally, a low-income dialogue group was resurrected to help give a stronger voice to those needing assistance to pay their utility bills.

Also, in the electric industry, the OCC argued at the Ohio Supreme Court in September 2005 that the FirstEnergy Rate Stabilization Plan was unlawful. The Ohio Supreme Court issued its decision in May 2006, giving the OCC a partial win by stating that the rate plan approved by the PUCO failed to offer an electric rate based on a competitive bid, as required by Ohio's electric choice law. In July 2006, the Ohio Supreme Court vacated the PUCO’s decision on the American Electric Power Rate Stabilization Plan, providing another win for the OCC.

In the coming years, the OCC will continue to advocate on behalf of Ohio’s residential utility consumers.

return to top 

The next 30 years of utility service

As the Office of the Ohio Consumers’ Counsel celebrates its 30 years of advocacy, some of its experts were asked to speculate about what could possibly occur in the utility industry by 2036.

Even with all of the significant changes to utility services and rates over the past 30 years, residential consumers can expect even more by 2036. It is impossible to predict all the new ways we may be using essential services such as electricity, natural gas and telecommunications, but one thing is sure: the landscape will be different.

It is likely that demand for and the price of natural gas will grow despite estimates that approximately 62 years of an economically recoverable supply are left in the United States. Electricity may fulfill more of consumers’ energy needs. Energy demand and environmental regulations will likely lead to an increased use of renewable sources such as solar and wind. In some parts of the country, the first nuclear facilities since the 1980s may be built while innovative technologies could be introduced that use a different source or a new process to help meet our energy needs.

Consumers may begin to make major lifestyle choices based on the size of their energy bills. It may become common for consumers to produce some of their own power by installing rooftop solar panels. Energy efficiency could play a role in deciding where to live. For example, buying a smaller house close to the workplace would allow consumers to save on gasoline, electricity and natural gas. In addition, some communities or subdivisions could generate all of their own electricity, becoming more self sufficient.

Consumers will likely demand new pricing options for their electricity. Utilities could install a “smart meter” to allow consumers to track the price of electricity and be charged a lower price for power used during hours when it is not in high demand. In addition, advancements could allow an electric or natural gas company to readily read consumers’ meters in an entire community and assist consumers to remotely control energy usage in their homes and businesses.

While advancements may seem all too common in telecommunications, over the next 30 years we should see many products shrink in size and perform dozens of tasks. Imagine a voice-activated computer/ telephone that can fit in the palm of the hand or be part of a consumers’ clothing. That device could remotely control appliances in the home as well as provide an always-on connection to a much faster Internet.

While the next 30 years will present challenges, innovation will pave the way to potential savings and conveniences for residents.

return to top 

return to top