Office of the Ohio Consumers' Counsel

Media Center

Consumers’ Counsel asks Ohio Supreme Court to decide if Vectren accounting decision is legal

COLUMBUS, Ohio – April 30, 2007 – The Office of the Ohio Consumers’ Counsel (OCC), the residential utility consumer advocate, today asked the Ohio Supreme Court to reverse an unlawful decision by the Public Utilities Commission of Ohio (PUCO) that will increase customer’s rates, through an accounting procedure. Those customers affected are customers served by Vectren Energy Delivery of Ohio.

The OCC is contending that the PUCO incorrectly allowed Vectren to implement an accounting mechanism that permits the company to increase rates to customers, by-passing a ratemaking provision in the state law. The accounting procedure facilitates an unlawful increase by allowing a “decoupling” mechanism without a rate case process. Under decoupling Vectren can increase all customers’ rates in order to recover revenues lost from customers’ decreased natural gas usage. In it’s filing, the OCC is asking the Ohio Supreme Court to reverse the PUCO’s decision.

In September 2006, Vectren was permitted by the PUCO to use accounting procedures to facilitate the decoupling mechanism. The OCC has opposed Vectren’s decoupling proposal since the PUCO significantly altered the agreement signed by stakeholders which would have provided all residential customers with access to programs to reduce their consumption and therefore, their bills. Vectren’s proposal denies the majority of its customers the advantage of participating and benefiting from energy efficiency programs. The OCC does not support decoupling on a stand alone basis as Vectren proposes. Decoupling should only be implemented when it is offered with comprehensive energy efficiency programs available to all customers. Vectren’s proposal does not present such programs. OCC has repeatedly asked the PUCO to reconsider its decisions on the decoupling mechanism. Most recently the PUCO denied OCC’s request in late February 2007.

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.