Office of the Ohio Consumers' Counsel

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Ohio American Water customers facing another rate increase

COLUMBUS, Ohio – June 27, 2008 – An Ohio American Water (OAW) rate increase request that would raise overall rates for residential water customers in Franklin and Portage Counties by 31.8 percent and by 12.5 percent for all other residential customers is too high, according to the Office of the Ohio Consumers’ Counsel (OCC). The OCC has several objections to expenses, revenues, profits, service quality and rate structure as proposed in the company’s request.

Based on objections the OCC filed today with the Public Utilities Commission of Ohio (PUCO), Ohio American Water’s residential rates would be reduced to a 22.8 percent increase for residential customers in Franklin and Portage counties and to a 1.8 percent increase for residential customers in all remaining portions of OAW’s service territory. This represents a savings of more than $2 million for all residential customers.

“Rates for the customers of Ohio American Water have increased several times over the last few years,” said Janine Migden-Ostrander, Consumers’ Counsel. “Consumers are seeing costs for many of their utility services going up which are causing financial hardships for more and more Ohioans. Water is an essential resource and must stay affordable.”

Service quality and conservation should also be addressed, according to the OCC. Ohio American Water should continue the treatments and flushing procedures it has been using to ensure quality water. As it has previously agreed to do, OAW should also implement a conservation program for its customers.

The staff of the PUCO has recommended increasing rates for all customers in Franklin and Portage counties by 30 percent. The rest of OAW’s customers are facing up to a 4.5 percent increase in water rates.

Ohio American Water last increased rates for customers in March 2007. It increased water rates 14 percent for customers in Franklin and Portage counties and 11.7 percent for all other customers.

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.