Office of the Ohio Consumers' Counsel

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Consumers’ Counsel supports advanced energy provisions but disappointed in versions of overall energy policy bill

COLUMBUS, Ohio – April 15, 2008 – With a lot of work and compromise going into the creation of the advanced energy portions of Senate Bill 221, Ohio and its residential consumers would benefit from the General Assembly passing those specific portions of Senate Bill 221, Ohio’s energy policy legislation, said the Office of the Ohio Consumers’ Counsel (OCC), the residential utility consumer advocate.

The OCC recommended that the remainder of Senate Bill 221 be significantly changed if it is passed by the House and sent to a legislative conference committee in its current form. The conference committee would iron out differences between the House and Senate versions.

“The advanced energy section of Senate Bill 221 is critical to providing Ohio with meaningful options to diversify our energy portfolio and mitigate energy price increases. Advanced energy is our first line of defense,” said Janine Migden-Ostrander, Consumers’ Counsel.

“We encourage policymakers to make significant changes if the current bill goes to a conference committee. On balance, rate proposals of each version of Senate Bill 221 did not benefit residential consumers and reduced the consumer protections and safeguards in the law. We are deeply concerned with the steep costs that would be paid by the millions of households across our state,” said Migden-Ostrander.

The OCC called for the following to be included in energy policy legislation:

A frequent comparison between the market and regulated “electric security plan” rates. For example, rate comparisons should occur any time an electric security plan increases customers’ rates by 10 percent or more.
Electric security plan rates should be developed using the tried and true traditional ratemaking process, which allows for a longer time period of review and consumer safeguards such as a PUCO staff report of investigation. Generation and distribution rates should be subject to this process, so that costs can be verified as just, reasonable and prudent.
All generation charges should be bypassable, meaning they would be avoidable by consumers choosing an alternative supplier or joining a community buying pool (aggregation).

“The OCC looks forward to working with Governor Strickland, the House and the Senate to create a bill that will benefit all consumers,” Migden-Ostrander said.

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.