Office of the Ohio Consumers' Counsel

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OCC calls for rate protection of Aqua Ohio customers

COLUMBUS, Ohio – Dec. 17, 2007 – Aqua Ohio Inc. has requested a rate increase that exceeds what is considered just and reasonable, the Office of the Ohio Consumers’ Counsel (OCC) will say later today in extensive testimony to be filed at the Public Utilities Commission of Ohio (PUCO). The OCC is asking the PUCO to limit the company’s request as it could cause residential rates to increase an average of 26.6 percent. Rates for some typical residential customers could increase as much as 46.3 percent for water service under the company’s proposal.

Aqua Ohio has requested an overall increase in rates of $3.2 million. The OCC believes the company’s request is not justified and should result in no more than an average 8.27 percent increase in rates. Additionally, OCC is recommending that profits from the sale of utility assets be applied to fund infrastructure development projects in Ohio that the company would otherwise seek to recover from customers through future rate increase requests.

“An increase in rates of 46 percent is the equivalent of rate shock and cannot be justified,” said Janine Migden-Ostrander, Consumers’ Counsel. “Ohioans are already paying high prices for utility services across the board and this type of increase will further strain their budgets.”

Aqua Ohio has proposed to increase rates of its customers in the Lake Erie, Lake Erie East, Norlick and Seneca service areas - approximately 28,800 residential customers. The company has also proposed increases to various charges including those related to account activation, dishonored payment, and reconnection.

The OCC believes that Aqua Ohio should move toward uniform rates among its service territories and should also establish low-income programs for consumers. With this effort, consumers of Aqua Ohio can be assured that they all are paying the same rates for the same service. Additionally, low-income customers will benefit through measures that help keep water service more affordable.

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.