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Agreement cuts rate increase in half for Mohawk water customers

COLUMBUS, Ohio — August 14, 2008 — corrected version — Through the diligent work of the Office of the Ohio Consumers’ Counsel (OCC), the staff of the Public Utilities Commission of Ohio (PUCO) and the Lake Mohawk water committee, a customer group, customers of Mohawk Utilities will not see an increase of 55.5 percent in water rates as the company had originally proposed. The OCC was able to show that the company did not need an increase of such magnitude and Mohawk agreed to reduce its rate increase to half of what it had proposed.

Additionally, the OCC was able to advocate for a low-usage flat rate of $11.81 per month for customers who use less than 500 gallons of water per month.

“This agreement will benefit residential customers by cutting Mohawk’s proposed rate increase by half,” said Janine Migden-Ostrander, Consumers’ Counsel. “Customers also will see some relief from their water bills when they are away for the winter. A flat-rate to maintain water will keep service reasonable when costs for many other services are on the rise.”

The average residential customer who uses 3,551 gallons of water per month will see their water bill increase to $38.66 per month, an increase of about $6.68 per month. Mohawk delivers water to 1,474 customers. The agreement will have to be approved by PUCO commissioners before new rates go into effect.

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.