Office of the Ohio Consumers' Counsel

Media Center

October 2009

OCC: Safeguards a must in climate change bill
Free voice mail program launched in 419 area code
Solar power cuts electric bills
Decisions in AEP case uphold higher, retroactive rates
White pages no longer sent to Ohio metros
Aqua Ohio consumers receive assistance

OCC: Safeguards a must in climate change bill

The talk of the nation has been on climate change legislation which targets carbon emissions in an effort to combat global warming. There are two primary pieces to the climate change discussion. One is the concept of a carbon tax and the other would create a structure for a cap and trade system.

Arguments have been presented that both support and reject these policies. Currently, the cap and trade design has gained more acceptance and attention than the carbon tax. But regardless of where you stand on the issue, it is likely that climate change legislation will be passed in one form or another. It will be the job of the OCC to advocate on behalf of Ohio’s residential utility consumers to make sure the decisions made by the utilities to comply with the new law are the cheapest available options and that consumers are protected from unneeded rate increases.

The current leading climate change legislation under debate by Congress is the Waxman-Markey Bill, also known as the American Clean Energy and Security Act of 2009. This bill would regulate carbon emissions through a cap and trade mechanism that requires utilities and the federal government to meet renewable energy and energy efficiency targets. Through these policies, utilities would be faced with the ultimate choice of reducing electric generation from coal; installing pollution control devices on the coal generating plants; offsetting carbon emissions through a combination of energy efficiency, renewable or alternative generation; implementing programs to reduce the need for electricity; and/or paying for the cost of carbon emissions with carbon credits.

One of the most debated and controversial elements of the Waxman-Markey Bill is the initial give-away of emission credits to utilities and other coal generators. According to the bill, credits will be given to utilities based on their level of emissions and they would auction the credits in the marketplace. The utility would then use the revenues from the auction to offset the increased cost of supplying electricity to consumers.

Some support allowing the utilities to auction the credits with no restrictions while others, such as the OCC, believe that the revenues from the sale of the credits should be allocated directly to the utilities’ customers to offset the costs necessary to bring power plants into compliance with the climate change legislation. This will help alleviate the burden on all customers – residential, business and industrial – who will ultimately pay the bill.

There will be challenges Ohio will have to face in the light of this legislation. As a state that produces 86 percent of its electricity from coal, the costs will be significant. Meeting emission targets will be an expensive venture that consumers will ultimately pay for.

Ohio is focusing on how we can do our part to help reduce carbon emissions in the most cost-effective ways and potentially change our views about how and when we use electricity.

One way consumers can help meet the climate goals and reduce costs, is through energy efficiency measures which are the cheapest way to reduce carbon emissions. A 2009 study by the American Council for an Energy Efficient Economy finds that Ohio has the potential to offset energy consumption by 33 percent and reduce carbon emissions by 12 percent solely through energy efficiency efforts. In fact, Ohio can save $3.3 billion by 2025 at this projected level of energy efficiency savings.

Fortunately, Ohio has already made strides to move forward with energy efficiency. Legislators should be applauded for their foresight in passing requirements that will substantially lower demand through energy efficiency and customer demand response programs, and increased renewable energy in the state. These standards will lower carbon dioxide emissions and help reduce the costs associated with climate change legislation. Additionally, the requirements are much more stringent than any standards proposed by the federal government, making Ohio a leader in the country’s energy future. The OCC supports climate change legislation to strengthen increased energy efficiency and renewable energy requirements. Ohio has the processes in place and is on its way to reducing electricity demand through energy efficiency by 22 percent and including 12.5 percent of the electricity sold in Ohio through renewable energy.

The United States is at its energy crossroads. Whatever the path taken, the OCC will be here to advocate for the best interests of Ohio’s residential utility consumers.

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Free voice mail program launched in 419 area code

Access to free voice mail is now available to individuals through participating social service agencies in the 419 area code of northwest Ohio who do not have a telephone because they are without a permanent residence or cannot afford telephone service. The official launch of Leader Voice Mail took place at a July 21 press conference in Defiance.

The new service, made available through the efforts of the Office of the Ohio Consumers’ Counsel (OCC), Leader Technologies Inc. and the Ohio Association of Second Harvest Foodbanks, will enable users to retrieve messages from a voice mail box associated with a personal telephone number which can be accessed from any touch-tone telephone, including wireless, or by using the Internet.

Messages can be left and retrieved at a secure, anonymous location, enabling clients to search for or maintain a job, find housing or stay in touch with family, medical professionals or social service agencies.

“The OCC is pleased to support this vital technology for citizens in northwest Ohio and we hope it can be expanded successfully throughout the state,” Ohio Consumers’ Counsel Janine Migden-Ostrander said.

The concept of voice mail for people in need is part of a nationwide effort initially made available in 2000 to Ohioans in Cuyahoga and Lorain counties through a national “community voice mail” effort. Recently, the community voice mail service was expanded to include Summit County.

The Leader Voice Mail service is not affiliated with the national Community Voice Mail network but offers a similar service to citizens in transition. The OCC joined Leader in developing the service for northwest Ohio in 2008 after telephone numbers in the 419 area code became available.

For more information about Leader Voice Mail contact the OCC at 1-877-PICKOCC (1-877-742-5622) or visit the OCC website (www.pickocc.org). For information about Community Voicemail, call (206) 441-7872 or visit www.cvm.org.

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Solar power cuts electric bills

As he looked across his backyard at the other homes in his Delaware neighborhood, high school physics teacher David Carpenter said, “All these homes could have solar power.”

That is because the housing development does not have mature trees blocking the sun from roofs and many of the homes have a southern exposure, the best for taking advantage of sunlight.

Carpenter, who had a 4.9 kilowatt solar array of 42 panels installed on his home’s rear roof in February 2006, figures he’s added about $12,000 to the value of his home. Additionally, he got a $2,000 federal tax credit and a grant from the Ohio Department of Development (ODOD) for $23,000, leaving his net cost about $19,000. He also is selling electricity to American Electric Power (AEP), the area provider.

A solar array is made up of many photovoltaic cells or modules, which convert sunlight into electricity. The cells are made of semiconductors such as silicon. When light strikes the cell, energy is transferred to the semiconductor. The energy knocks electrons loose, which are forced to flow in a certain direction, causing an electric current. That current powers a home, a calculator or the international space station.

Carpenter said he made the decision to go solar when he wrecked his car. He thought about getting an energy-efficient vehicle, but discovered he could cut his carbon footprint by three and half times more by installing solar over buying the car. His wrecked car was repaired.

Carpenter tracks his family’s energy consumption daily through a computer program and shares his experience and results with his science students at Rutherford B. Hayes High School. His home was on the 2008 Ohio Solar Tour sponsored by Green Energy Ohio.

Carpenter figures he has reduced carbon dioxide emissions by about 3.3 metric tons per year. The panels provide his family with 100 percent of its electricity and saved about $1,500 in electric bills so far. He said he expects to break even in about 16 years, sooner if the price of electricity continues to go up. Even on cloudy days his system produces electricity.

What bothers Carpenter is that he does not get paid for the electricity he sends back into the grid at the same rate that AEP charges. He called that an impediment for others to go solar.

But the process of installing the system, getting on the grid and obtaining the ODOD grant, was pretty effortless, he said. His installer, a company in Athens, obtained the grant.

“I just signed where (the contractor) told me to,” he said.

Homeowners who install a solar system can get a 30 percent tax credit on their total investment through 2016 because of the Energy Improvement and Extension Act of 2008. That’s much more than Carpenter received in 2006. The state has offered grants for solar projects as long as funds remain available. Low-interest loans also are available.

Carpenter started with a small solar panel attached to a shed in his backyard as a test before going for a whole house system. Next up for the Carpenter home?

“I’m attacking my (natural) gas bill,” he said. “I’m going to install a solar water heating system.”

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Decisions in AEP case uphold higher, retroactive rates

American Electric Power (AEP) customers will continue to pay higher rates retroactive to Jan. 1, 2009, under AEP’s latest rate plan as a result of decisions by the Public Utilities Commission of Ohio (PUCO) and Supreme Court of Ohio.

In April 2009, the Office of the Ohio Consumers’ Counsel (OCC) requested the PUCO rescind the retroactive portion of its order, which the PUCO rejected. The OCC – joined by Kroger, the Ohio Hospital Association and the Ohio Manufacturers’ Association – then asked the Supreme Court of Ohio to block the retroactive ratemaking, which it refused to do.

The Court denied the request to stay the retroactive rates in June, and in July the PUCO decided to uphold most of the AEP rate increases. In its July rehearing decision, the PUCO reiterated that percentage increase caps were placed on AEP’s annual rate increases over the three-year period 2009-2011. The PUCO also rejected AEP’s request to recover approximately $150 million, or $51 million a year, in rate increases for costs associated with two generating stations.

The OCC had argued to the PUCO that Ohio law prohibits the retroactive ratemaking which in this case allowed AEP to collect 12 months of 2009 revenue from customers over nine months beginning in April 2009. Additionally, a new electric law, adopted in 2008, provided that if the PUCO had not issued a decision by Jan. 1, 2009, then the utility could only collect current rates until new rates were approved by the PUCO.

Based on AEP’s rates authorized by the PUCO in its July rehearing decision, it is estimated that a Columbus Southern Power customer using 1,000 kWh per month will see a bill in September of $107.76 compared to a bill in March 2009 of $96.29. For Ohio Power, a customer using 1,000 kWh per month will have a September bill of $91.83 compared to $81.85 in March 2009.

The OCC continues to explore options to best protect AEP’s residential customers from unjustified rate increases, including returning to the Court.

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White pages no longer sent to Ohio metros

Residential white pages telephone directories for consumers in the Cincinnati, Cleveland and Columbus areas are no longer automatically delivered to homes and businesses.

AT&T Ohio customers:

• Customers in the Cleveland and Columbus areas will no longer automatically receive the AT&T residential white pages directories.

• AT&T may limit distribution of residential white pages directories in other areas in the future.

• AT&T customers may receive a printed white pages directory only by ordering one through the company.

• To have a printed 2009 white pages directory or a CD-ROM containing residential, business, government and yellow pages listings delivered for free, AT&T customers in Cleveland can call the company toll free at 1-800-346-4377.

• AT&T customers in Columbus can request new directories or a CDROM beginning in September 2009 by calling 1-800-346-4377.

• AT&T customers requesting delivery of a white pages directory should generally expect to receive it in about 14 business days.

• AT&T’s directory listings are available online through www.RealPagesLive.com and www.YELLOWPAGES.com.

Cincinnati Bell customers:

• Customers in the Cincinnati area will no longer automatically receive the Cincinnati Bell residential white pages directory.

• Cincinnati Bell customers can have a free directory delivered by calling the company at (513) 566-2665 (BOOK). Forms to order white pages directories are available at www.cincinnatibellgreenpages.com.

• Cincinnati Bell customers requesting delivery of a residential white pages directory should generally expect to receive it in five business days or less.

• For Cincinnati Bell customers, printed residential directories are available at the company’s retail store locations. A list of retail store locations is available at www.cincinnatibell.com/whitepages. Customers also may recycle old directories at these locations.

• Customers can look up telephone numbers electronically at www.cincinnatibell.com/whitepages. For customers with Cincinnati Bell’s ZoomTown broadband service, white page searches can be conducted through the service’s home page, www.zoomtown.com.

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Aqua Ohio consumers receive assistance

The Office of the Ohio Consumers’ Counsel (OCC) obtained a $25,000 benefit from Aqua Ohio to help low-income water customers. The OCC pursued a case against Aqua Ohio after hearing repeated reports that consumers were either not receiving water bills for months at a time or were receiving bills based on estimated readings for extended periods of time. Both situations are violations of state water service standards. Also, the company assessed late payment fees inappropriately.

As part of Aqua Ohio’s last rate case, the company agreed with the OCC and the Public Utilities Commission of Ohio (PUCO) staff that there were unresolved billing problems resulting from a new system installed in May 2007. The company agreed to correct the problems by July 2008 and then later revised that date to October 2008. However, the problems continued and were not corrected as of February 2009.

The $25,000 contribution will be distributed equally to agencies in the Aqua Ohio Lake Erie, Stark and Struthers divisions. Also, the PUCO assessed a $132,000 fine against the company. The case against Aqua Ohio remains open while the PUCO staff conducts an audit of the company to make sure all billing problems are now corrected.

Aqua Ohio customers needing bill payment assistance should contact the OCC to obtain the specific eligibility criteria and the locations where applications can be made.

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