Office of the Ohio Consumers' Counsel

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PUCO decision on renewable power and smart meters is a victory for Ohio Consumers' Counsel

COLUMBUS, Ohio – March 28, 2007 – In a victory for the Office of the Ohio Consumers' Counsel (OCC), a decision today by state regulators will help remove some obstacles that have prevented more Ohio residents and businesses from receiving pricing options and generating renewable electricity. While more must be done, the OCC said the decision is a significant step forward.

The OCC made recommendations during a year-long Public Utilities Commission of Ohio (PUCO) proceeding that would develop more rate options for customers based on when they use their power. The optional rates would more accurately reflect the real-time market price of electricity, which can rise and fall according to demand. Cost savings would occur if a customer was able to shift energy usage into low-priced periods, for example late at night. The OCC also wanted the door to be opened wider for consumers who wish to generate some of their own electricity.

"This victory for the OCC and consumers means progress toward allowing Ohioans to be able to produce some of their own power through, for example, wind turbines or solar panels. Even when power is produced in small amounts, it promotes reliability and can help lower all of our bills," Janine Migden-Ostrander, Consumers' Counsel, said. "As we look to Ohio's energy future, we must use more renewable sources to produce our electricity. In the long term, our state could enjoy the benefits of greater energy independence, increased economic development and reasonable electric prices if we embrace renewable projects and use our power more efficiently."

The PUCO decision will simplify and standardize rules regarding how consumers producing their own power are able to connect to the local utilities' system. That interconnection is vital in order to allow those homes and businesses to receive the remainder of their power from the utility. This also would benefit those customers by allowing them to receive credits on their electric bills for power they are able to provide to the broader electric grid. Rules involving this process, known as net metering, also were clarified and improved.

The OCC hopes the PUCO decision sets the groundwork for more action to be taken.

"This decision needs to be a beginning, not an end. We advocate that residential consumers have new technology available to give them advanced time-based pricing options. This would empower them to reduce their usage when the market price of electricity is very high. The optional rates could produce savings for customers and increase electric reliability for the utility," said Migden- Ostrander. "Many issues must be resolved by policymakers and stakeholders, including the need for an alternative energy portfolio standard, which would require a percentage of a utility's power to come from a renewable source."

The OCC has developed a Diversified Energy Portfolio proposal that would include a multitude of energy resources that can provide residents and businesses an affordable and environmentally sound energy future. The proposal includes an alternative energy portfolio standard. Information about the OCC's proposal and its Smart Energy fact sheets can be found on its website at www.pickocc.org/smartenergy/ipm.shtml.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC website at www.pickocc.org.