Office of the Ohio Consumers’ Counsel

Media Center

July / August 2008

Energy law will shape the future of electricity in Ohio
10 ways to save money on your summer cooling bills
OCC in your corner
Ohioans find help with Community Voice Mail
Cost, quality issues concern water consumers
Going "green" when remodeling your home saves money

Energy law will shape the future of electricity in Ohio

After more than a year of hard work, Ohio now has a new energy law that provides landmark changes in energy policy and is likely to have mixed results for Ohioans.

Gov. Ted Strickland signed the electric legislation into law and it will go into effect July 31. But the potential for significant rate increases will require stronger vigilance to protect residential customers as rules for the new law are made. From the beginning, the Office of the Ohio Consumers’ Counsel (OCC) worked diligently to deliver a consistent, logical message advocating for fairness, consumer protections and the lowest cost electricity options for residential customers.

The OCC was able to accomplish a number of key benefits for customers. Major gains were made to adopt alternative energy solutions, as the OCC led the effort to adopt energy efficiency standards. The standards proposed by the OCC were adopted in the law and will require a reduction in electricity demand of 22 percent by the end of 2025. An important benefit of this win is the ability to provide low-income consumers with ongoing energy efficiency programs over at least the next 17 years. Other energy efficiency programs will also be offered to all of Ohio’s residential consumers.

Working closely with the environmental community and the legislature, the OCC's efforts assured that renewable energy will become a part of the electric supply. Utilities will be required to make renewable energy 12.5 percent of electricity sold by 2025. Annual benchmarks and penalties for noncompliance will ensure regular progress to meet the goal. This hard-fought battle to achieve a renewable energy standard will enable Ohio to develop lower cost and environmentally friendly energy supply options. Also, the restrictions on existing net metering laws were repealed, opening the door for customers to supply portions of their own energy through roof-top solar panels, geothermal units and other renewable energy technologies.

Throughout the debate in the Ohio legislature, the OCC focused on the way electricity will be priced under this new energy policy. Transition charges that could have led to continued payment of more than $590 million per year for FirstEnergy customers will expire as scheduled, while customers of other utilities will see lesser amounts also fall off their bills; a comparison between a regulated generation rate and a market rate option for a utility will be performed to determine which costs consumers the least; and due process for regulated rate plans allows the OCC and other groups to properly prepare for cases where utilities may be seeking significant rate increases.

The OCC also was able to successfully advocate for the adoption of a standard of prudence. This standard ensures that only costs for prudently purchased fuel, power, emission controls and environmental upgrades can be recovered from customers. Also, any new power plant to be constructed must be competitively bid, achieving the lowest cost for these expensive facilities. Another win the OCC secured is that subsidies for large companies will expire. Existing special contracts were not retained in the law and will need to be revealed in rate cases, if requested, so the OCC can protect consumers from overpaying the utility and ensure that rates are fair.

While the OCC worked to secure as many protections as possible for residential consumers, there were issues that did not come out in the favor of consumers. Some negative aspects of the law that the OCC unfortunately could not get changed include the possibility of automatic increases for fuel, purchased power and emissions allowances; the potential that utilities may be allowed to recover costs for power plants before they generate any power; increases to rates on single issues which may take place without consideration of other costs that may have decreased; the phase-in of rate increases that may mask the true impact of a rate increase; and the possibility of side deals, which were not outlawed as they should have been since they negatively affect residential consumers and are bad public policy.

The OCC is very proud of what it accomplished in this complex, multi-faceted legislation, but disheartened by unfavorable aspects of the legislation. The rulemaking process at the PUCO will be important in order to protect customers from unbridled rate increases. The OCC is already internally preparing for this critical phase in the implementation of the new energy law.

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10 ways to save money on your summer cooling bills

With summer now in full swing, air conditioners become the norm to escape the intense heat. However, that may get expensive as heating and cooling costs account for more than 56 percent of the typical U.S. homeowner’s annual energy use.

But that does not mean consumers have to completely sacrifice their comfort to save on energy bills. By starting with the following 10 tips consumers can stay cool and begin to save money this summer and all year round.

1. Get an air-conditioner tune up – A tune up will ensure the air conditioner is working at its best throughout the summer. High cooling costs may be avoided with a more efficient air conditioner.

2. Switch to compact fluorescent light bulbs – CFL bulbs last up to 10 times longer than incandescent bulbs. A single bulb can save $30 or more over its life-span.

3. Conserve water – Install low-flow showerheads and faucet aerators, and wrap older water heaters with an insulation blanket. Insulating water heaters will reduce heat from escaping the tank. Turn down the temperature on the water heater. The recommended setting is between 115 degrees to 120 degrees. Low-flow showerheads and faucet aerators will reduce the amount of hot water you use.

4. Use the OCC’s Smart Energy House – This interactive tool breaks down how much energy household appliances use; the benefits of owning more efficient appliances; and offers tips on how to use less energy. Go to www.pickocc.org and give it a try.

5. Use shading to keep heat out – Planting trees on the southwest side of the house will help block intense heat. Drapes and blinds can also help divert the sun. Low-e film can be placed on windows to help block the sun’s rays.

6. Install a programmable thermostat – Once you program the thermostat, it will automatically regulate the temperatures to save energy while away or asleep.

7. Take advantage of utility-sponsored programs – Some utilities have made programs available that will help consumers become more energy efficient. Check with your utility providers for programs they may offer.

8. Add more insulation – Upgrading home insulation and sealing leaks can help save up to 25 percent to 30 percent on energy bills. This will keep air conditioning from escaping and turning on as frequently. You may be able to find rebates to do this from your utility.

9. Open windows, raise thermostat – The early morning and nighttime hours may be the best time to take strain off your air conditioner and let fresh air into the home.

10. Use ventilation fans sparingly – Use these fans (i.e. bathroom fans or attic fans) sparingly during the hottest times of the day. On the other hand, ceiling fans can circulate air throughout the home more efficiently, allowing consumers to set the thermostat higher while maintaining comfortable temperatures.

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OCC in your corner

Agreement should lead to better Aqua Ohio service

The Office of the Ohio Consumers' Counsel (OCC) came to an agreement with Aqua Ohio that reduced a rate increase request and should improve customer service and address other issues facing residential water customers of the utility. The OCC heard about problems from customers and made sure Aqua Ohio will take direct action to solve their issues.

Under the agreement approved by the Public Utilities Commission of Ohio (PUCO) in May, ongoing billing issues that have posed problems throughout Aqua Ohio’s service territory will be addressed. Customers affected by these issues will be notified and receive an immediate credit for any late fees and be offered extended payment plans. Consumers should contact Aqua Ohio if they believe that late payment charges have been assessed improperly. These issues must be resolved before July 1 or the PUCO could seek financial penalties against the utility.

Aqua Ohio also will complete a meter reading to ensure accurate bills going forward, address discoloration issues and provide water conservation tools and techniques. The OCC was able to help customers in Jefferson and Roaming Shores avoid $4.7 million in transmission payments which resulted from a previous sale of water assets to Ashtabula County.

Water bills will increase for some customers as a result of Aqua Ohio’s rate request, however customers in the Lake Erie East service territory will see no increase in their rates. Water service in the Norlick and Seneca service territories required extensive investment by the utility to meet recent federal guidelines related to impurities in the water. Customers in these territories also are billed on a flat rate and the new rates bring them more in line with the costs other customers pay for the same service.

Aqua Ohio will also address water discoloration concerns raised by customers in the Lake Seneca service territory and provide water conservation tools and techniques. Several charges proposed by the utility will be lower than originally proposed as well.

Columbia Gas of Ohio riser update

An agreement among Columbia Gas of Ohio, the OCC and other stakeholders will result in natural gas riser safety issues being resolved at a reduced cost to residential consumers.

The agreement – approved by the PUCO – addressed concerns the OCC had about safety as well as the cost to residential consumers for fixing natural gas risers prone to leaks. A natural gas riser is the vertical portion of the service line that connects the primary distribution pipeline to the customer’s meter.

When the OCC found that another utility – Duke Energy Ohio – was able to solve the same riser problem in a more cost-effective manner than Columbia had originally proposed, the OCC worked to ensure that Columbia Gas customers would benefit from the same type of savings.

The OCC found that Duke was able to resolve safety problems by replacing only the top portion of the riser and using less labor than was originally proposed by Columbia. The OCC worked to have Columbia review less costly options. The OCC estimates $10 to $15 million or more could be saved through the use of these options.

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Ohioans find help with Community Voice Mail

In an age where new and diverse means of telecommunications are available to the vast majority of us, simply having access to voicemail (without necessarily having a phone) can mean the difference for thousands of Ohioans each year between finding a job or being unemployed; locating a place to live or being homeless; or being able to contact loved ones in a time of crisis or being unable to locate a family member in distress. A service known as “Community Voice Mail” continues to grow in popularity nationwide and in Ohio.

Since 2000, two Ohio counties, Cuyahoga and Lorain, have offered a free, 24-hour voice mail service to displaced persons. Working with 62 social service agencies, Cleveland Community Voice Mail (CVM) provides a telephone number from which messages can be retrieved from a cell or pay phone or phones in the homes of friends and family. For those users with email addresses, a message can be sent to their e-mail inbox alerting them that they have a voice mail message.

To qualify for Community Voice Mail, an applicant must show financial need, lack of reliable phone service, or pursuit of a goal for work, housing, healthcare, or safety from domestic violence. “The intangible that Community Voice Mail provides is hope,” said national CVM Development Director Patricia Bonnell. “No one e-mails you to tell you you've got the job. They call you. Without a phone number on your resume, you can't get a job.”

“CVM is a very handy resource to have available,” said Tricia Reider, a spokesperson for the Domestic Violence Center in Cleveland, “It avoids staff taking calls for residents.”

Cleveland CVM Director Mike Gibbs said that 2,078 clients used the service in 2007. According to survey data from information provided after the services were rendered, 70 percent were able to find employment, 67 percent found housing and 85 percent found relief from domestic violence situations, said Gibbs.

The Cleveland CVM chapter has twice been recognized nationally for its efforts in the region. In 2005, Gibbs was given the Community Voice Mail “Golden Phone” Award by the national CVM Federation for contributions to the Cleveland community, as well as working on behalf of Hurricane Katrina evacuees who had relocated in Northeastern Ohio.

In 2007, David Bergmann of the Office of the Ohio Consumers’ Counsel received the same award for his efforts as a state and national advocate for the need to expand the Community Voice Mail service in Ohio and to other states.

The OCC has advocated for the last four years for the implementation of CVM throughout Ohio. The costs to operate the program (approximately $65,000-$120,000 annually for a “minimally healthy” program in a metropolitan area with a population of over one million) make it well worth the effort.

Each year, CVM serves over 2,000 people in Ohio. Presently, Ohio cities that offer CVM include: Beachwood, Brecksville, Cleveland, Elyria, Lakewood, Lorain, Oberlin, Maple Heights, and Shaker Heights. Gibbs is hopeful that CVM will expand beyond Cuyahoga and Lorain counties to include Summit County in the near future. On the national level, ambitions are to include the greater Columbus and Cincinnati areas as well.

For more information about CVM, contact the OCC, your residential utility consumer advocate, at 1-877-PICKOCC (1-877-742-5622).

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Cost, quality issues concern water consumers

More than 200 consumers of two water companies attended a local public hearing and OCC-sponsored public forums to express concerns about water quality and cost.

Over three dozen customers of Mohawk Utilities, facing a 55.5 percent water increase, attended an April public hearing held by the Public Utilities Commission of Ohio (PUCO). During the public hearing, customers testified that the high cost and the quality of water they are receiving are a concern.

The OCC is addressing consumers’ concerns during settlement discussions with the PUCO, Mohawk Utilities, and other parties. A decision in the case is expected in July.

In November 2007, Ohio American Water Company (OAW) filed a request with the PUCO to increase customer rates 16.38 percent. OAW serves customers in 10 counties. OAW last increased its rates in March 2007. In April and May, the OCC held public forums to hear first-hand from customers in response to letters and petitions filed at the PUCO. Held in Westerville, Galloway and Mansfield, more than 150 people attended these forums. As a result, the OCC took additional water samples from consumer homes to try and determine outstanding quality issues.

The PUCO made its recommendations for OAW’s rate increase request in May and the OCC submitted the concerns of consumers along with its recommendations to the case in June. A decision in the case is expected in October.

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Going "green" when remodeling your home saves money

The Office of the Ohio Consumers’ Counsel (OCC) has been a proponent of finding consumers ways to save money on their utility bills. Now there is a set of guidelines that can be followed to make homes friendlier to the environment and to a consumer’s bottom line.

According to the U.S. Green Building Council, the REGREEN Guidelines are designed to provide homeowners and professionals the resources and tools to remodel homes to green specifications. They cover a range of projects from improving home energy performance to complete home rehabilitation.

As homes across Ohio and the nation age and require additional attention, following these guidelines during a home improvement project is an opportunity to save money and cut carbon emissions. The Commission for Environmental Cooperation reported that North American buildings account for 2,200 megatons of carbon dioxide released into the atmosphere each year. If current and future energy-saving technologies are used to construct new or remodel older buildings, 1,700 megatons in emissions could be saved in 2030.

Consumers can start lowering their homes’ emissions inexpensively. Some major utilities in Ohio have energy efficiency, demand side management and weatherization programs that can help reduce electric and natural gas usage. FirstEnergy, for example, helps its customers pay for a home performance audit and offers rebates for home upgrades. Duke Energy Ohio also offers a home energy analysis along with several other programs. Columbia Gas of Ohio filed a similar home conservation program July 1 with the Public Utilities Commission of Ohio for its natural gas customers.

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