Consumers' Corner

March / April 2007

In This Issue

 

Natural gas riser investigation

Photo of gas meterIn early February, the Office of the Ohio Consumers’ Counsel (OCC) filed recommendations with the Public Utilities Commission of Ohio (PUCO) on handling possible natural gas riser leaks. Natural gas risers are the vertical portion of the service line that connects the pipeline to the customer's meter.

The recommendations were based on OCC's review of a report issued in November 2006 by the PUCO staff on a statewide investigation. The report showed that upon review of a sampling of natural gas risers throughout the major natural gas utilities’ service territories, there is some risk with certain risers under specific circumstances. For instance, risers with plastic connectors that had been exposed to severely cold weather during the installation process and risers that had been tightened improperly upon installation seem to be more likely to fail and cause a natural gas leak.

Some of the recommendations included testing high risk service lines and risers first, requiring only factory assembled risers to be installed, requiring utilities to take ownership of the service lines and requiring the companies that were responsible for the manufacture, operation or installation of the riser to cover the cost of having the leaking risers replaced.

Plastic risers are typically located at residential homes. The report estimates that approximately 34 percent of all plastic natural gas risers in Ohio are the types of risers that are prone to leaks and failures when installed incorrectly.

In its report, the PUCO staff recommended that the natural gas utilities conduct an inventory in their service area to determine what types of risers are installed. Also, the staff recommended that each utility provide additional training to all qualified installers to limit the number of incorrect installations that occur.

Additional information can be found on the OCC’s website at www.pickocc.org or by calling toll free 1-877-PICKOCC (1-877-742-5622).

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Telephone customers alerted to tax refund

Photo of cashTelephone customers need to know that a special one-time refund is available through their federal tax forms. As part of a U.S. Treasury Department decision in May 2006, customers are entitled to refunds equal to the excise taxes paid on long-distance service after Feb. 28, 2003 and before Aug. 1, 2006. The federal tax on local service remains in effect.

Residential consumers can receive up to a $60 refund as reimbursement for a federal long-distance excise tax eliminated by the Treasury Department. Refunds either will reduce the amount owed by the consumer in federal taxes or increase the amount of their overall refund.

Consumers preparing their own taxes need to find out where on the form they should claim the refund. Those consumers having professionals prepare their taxes should be sure to discuss the refund with them.

Consumers will not need documentation proving that they paid the tax to receive a standard refund amount of between $30 and $60, depending on the number of exemptions claimed on their income tax return.

  • $30 refund for those filing with one exemption

  • $40 refund for those filing with two exemptions

  • $50 refund for those filing with three exemptions

  • $60 refund for those filing with four exemptions

For example, an individual with one exemption is eligible for a $30 refund. A married couple filing jointly and claiming two children or more is eligible for a $60 refund.

According to the Internal Revenue Service (IRS), consumers claiming the standard refund amount need only fill out one additional line on their federal tax return. The taxes can be based on a consumer’s traditional home, cellular or Internet-based telephone charges.

Residential consumers who believe they are owed over the standard refund amount may base the refund on an actual calculation of the taxes they paid if they have their old bills. They may be able to receive copies of long-distance bills from their company, but may need to pay for those copies. Customers who choose to calculate their paid federal long-distance taxes can fill out IRS Form 8913 and attach it to their tax return. Consumers may choose either the standard refund amount or their own calculated refund, whichever method results in the largest refund.

More information about the tax refund is available from the IRS website at www.irs.gov.

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Consumers have utility resource through
1-877-PICKOCC

The Office of the Ohio Consumers’ Counsel (OCC) is the state’s residential utility consumer advocate. Through its toll-free hotline, letters and website inquiries, consumer service representatives handle a wide variety of utility questions and informational requests. Consumers contact the OCC for a variety of reasons, including to:

  • Find out answers to utility questions

  • Inquire about electric, natural gas, telephone and water issues

  • Receive fact sheets on understanding utility bills and other related topics

  • Learn cost saving tips

  • Receive information on disconnection and reconnection of utility services

  • Learn how to apply for low-income assistance programs

Typically, the OCC hears from consumers who want to learn about the choices they may have in utility companies or they may want to have questions answered about charges on their utility bills. During the winter heating season many of the calls are from consumers who are facing the loss of utility services and want to learn how to maintain their service or get their service reconnected.

Last year, the OCC’s call center staff helped Dominion East Ohio customers understand why the rate they pay for natural gas changed names. The OCC assisted Dominion’s customers become more informed about the changes they were facing as they began paying a more market-based rate.

Also during 2006, the OCC took time to explain rate increases on some electric bills. These increases resulted from the implementation of rate plans that were opposed by the OCC. Several other issues that consumers called the OCC about stemmed from the numerous cases that the OCC argued at the Ohio Supreme Court.

Representatives are available Monday through Friday between the hours of 8 a.m. and 5 p.m. by calling toll free 1-877-PICKOCC (1-877-742-5622). The OCC also operates an automated informational voicemail service which is available 24 hours a day.

In addition to the toll-free number, consumers can reach the OCC customer service representatives by sending requests or questions to
occ@occ.state.oh.us, visiting the website at www.pickocc.org or by writing to Office of the Ohio Consumers’ Counsel, 10 W. Broad Street, 18th floor, Columbus, Ohio 43215.

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OCC is in your corner

  • State regulators granted in part a request by the Office of the Ohio Consumers’ Counsel (OCC) for a freeze on rate increases for electric generation service on behalf of Duke Energy’s Ohio customers. The OCC filed its request based on a decision by the Ohio Supreme Court that found the company’s rate plan was partially unlawful. A ruling by the Public Utilities Commission of Ohio (PUCO) increases customers’ rates, but not by as much as Duke Energy had proposed. The PUCO ruled on increases to four separate charges that have appeared on customers’ bills since the rate plan went into effect in January 2006.

  • The OCC recommended that a wholesale auction be implemented this spring to achieve lower rates for customers of Columbia Gas of Ohio. The OCC believes that an auction, similar to the one that was held last August for Dominion East Ohio, could potentially provide lower rates for Columbia customers who have not chosen an alternative natural gas supplier and continue to pay the Gas Cost Recovery (GCR) rate.

    The Dominion auction, which was deemed successful by all participating stakeholders including the OCC, PUCO, Dominion and suppliers, resulted in a fee of $1.44 that would be added to natural gas market prices to determine monthly rates for consumers. This new rate is consistently less than customers had been paying under the GCR, which typically ran $2.37 over monthly market prices. The OCC determined that Columbia’s GCR was, on average, $2.60 over the monthly market price.

    The OCC also advocated that Columbia Gas be prohibited from using a pool of $14.8 million to offset natural gas choice costs and instead return this amount to customers in October 2008.

  • The OCC requested that comprehensive energy efficiency programs it had proposed in 2006 along with Vectren Energy Delivery of Ohio and Ohio Partners for Affordable Energy be revived and implemented. The OCC took this action as a result of a decision by the PUCO that significantly altered an important agreement among these stakeholders. The alterations deny the majority of Vectren’s customers benefits from energy efficiency programs while allowing Vectren to increase all customers’ rates to recover revenues lost from decreased natural gas usage.

  • The OCC successfully advocated on behalf of Ohio American Water customers so that water quality and service can be improved. The OCC and the staff of the PUCO were among the parties that filed an agreement in the Ohio American Water rate case. The agreement is pending the approval of the PUCO Commissioners. Under the agreement, Ohio American Water is required to take aggressive measures to improve its water quality and service to respond to concerns raised by customers and the OCC.

    Additionally, as a result of the pending agreement, Ohio American Water customers will pay less of an increase than what the company originally proposed. Water rates will increase 14 percent in Franklin and Portage counties, while wastewater rates will increase 5 percent. In Ohio American Water’s traditional service territory water rates will increase 11.7 percent. Ohio American Water originally asked for a rate increase of 21.96 percent in Franklin and Portage counties and an increase of 14.31 percent in its traditional service area, which includes portions of Ashtabula, Lawrence, Marion, Morrow, Pike, Preble, Richland and Seneca counties.

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Upgrades can save money, energy and the environment

Photo of a house with solar panelsPreparing for annual spring cleaning means different things to different people. From the little projects like packing away winter items and cleaning up clutter around the home office to larger projects like energy efficiency improvements, there is likely something that everyone will have on their to-do list.

For some consumers, finding ways to make their home more energy efficient and environmentally friendly will be a priority. These types of improvements will help save money on monthly utility bills and provide significant tax breaks through the Energy Policy Act of 2005. State incentives also are available to help encourage these types of installations.

In-home Improvements

Replacing appliances with Energy Star-rated units, which have lower operating and energy costs, is just one way to reduce the demand for energy and improve the long-term cost of utilities. Other options like installing tankless water heaters or planting trees may not be as obvious of an energy-efficient improvement.

Tankless or instantaneous water heaters provide hot water only when needed. The energy losses associated with the traditional water heater tank which heats the water to maintain the temperature, do not exist with tankless water heaters. This can save money and reduce water waste. These heating units are hooked up in close proximity to the hot water line. When the water is turned on, either a gas burner or electric element is activated resulting in instantaneous hot water.

Planting trees around the home will not only beautify the property but can be a valuable tool to increase energy efficiency inside. This simple addition can reduce heating and air conditioning costs by providing shade and wind protection. When choosing which trees to plant, consider native plants as they have adapted to the soil and climate in the area and are more likely to thrive with minimal care. Also, consider the types of trees and places around the home to plant them so they will not interfere with power and telephone lines. To find out what trees grow best in Ohio visit the National Arbor Day Foundation at www.arborday.org/treeinfo/zonelookup.cfm.

Green Power

Harnessing the sun to provide energy for a consumer’s home is one way to reduce demand for fuels like natural gas or coal that are used to generate electricity. Using a renewable resource to meet a portion of a home’s electricity requirements reduces the need for electric power and improves reliability during times of high usage throughout a utility’s service area.

This kind of installation is a long-term investment and allows consumers to participate in net metering programs to offset a portion of energy provided by a utility. Excess energy generated is sold back to the utility, which appears as a credit on a customer’s bill. There is more information on net metering and renewable energy on the OCC website at www.pickocc.org.

More information about the available tax credits and grants
available can be obtained from the U.S. Department of Energy at
www.energy.gov/taxbreaks.htm and the Ohio Department of
Development at www.odod.state.oh.us/cdd/oee/.

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Read the fine print to be an informed consumer

Photo of man with a billThe Office of the Ohio Consumers’ Counsel (OCC), the residential utility consumer advocate, reminds consumers that it is important to read all the information on utility bills, including the fine print. It also is equally important to read the fine print on contest entry forms, surveys and Internet pop-up windows.

Some consumers may be billed for telephone services they either did not order or do not want. Other customers may see service changes that they did not authorize. Before sending in your local or long-distance telephone bill payment, be sure to review the following:

  • Every service, feature or calling package listed. Also look for any services not recognized or ordered. An illegal practice called “cramming” occurs when products or services are added to a telephone bill without a consumer’s permission.

  • The name of the company providing local and long-distance services. An illegal practice called “slamming” is the switching of a local or long-distance company without a consumer’s consent.

Before signing up with a natural gas supplier, consumers should review the terms and conditions of any agreement for:

  • The type of rate being offered, whether it is a fixed rate for a period of time or a variable rate that can change during the agreement.

  • Any additional fees that may be charged related to signing up for service, changing suppliers or canceling an agreement before the end of the agreement.

  • Information on whether the agreement automatically renews or if the consumer must sign up again.

In addition, some consumers may become victims of slamming, cramming or other scams when they complete contest or survey forms or when they click on pop-up windows on the Internet. Consumers should always read the fine print before signing up for anything.

For more information about consumer protection issues, contact the OCC toll free at 1-877-PICKOCC (1-877-742-5622) or visit the consumer publications page at www.pickocc.org.


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