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Contact: Anthony Rodriguez
(614) 466-9547

Ohio American Water withdraws step-increase rate proposal; OCC maintains water rate decrease recommendation

COLUMBUS, Ohio – January 20, 2010 – Ohio American Water (OAW) has dropped its effort to automatically increase rates for consumers in 2011, 2012, and 2013, according to a letter filed with the Public Utilities Commission of Ohio today. Despite that decision, the state’s utility consumer advocate said the utility’s rates need to decrease from current levels.

“This is good news for consumers but does not change the facts that a decrease over current rates is warranted for OAW’s residential water customers,” Ohio Consumers’ Counsel Janine Migden- Ostrander said. “The OCC has discovered several costs that Ohio American Water has asked to recoup from its customers that it should not be allowed to collect. Additionally, it should not be subsidizing other customer groups at the expense of residential customers.”

The utility’s request to increase water and wastewater rates for 2010 amounts to $8.75 million. If the OAW’s request had been approved by state regulators as originally proposed, residential rates would have climbed between 71 percent and 78 percent.

The Office of the Ohio Consumers’ Counsel (OCC) recommended residential water customers receive a rate decrease in a Jan. 4 filing at the PUCO. Coupled with recommendations made by the PUCO staff in its Nov. 27 report, OAW customers would see a decrease of more than $7.3 million for water and wastewater rates.

Under the OCC’s recommendations, an average water customer in OAW’s Franklin and Portage districts using 6 Ccf (hundred cubic feet) of water per month would see a rate decrease of 6.38 percent.

Similarly, an average OAW water customers using 10 Ccf in all other districts (Ashtabula, Lake White, Lawrence, Mansfield, Marion and Tiffin) would experience a rate decrease of 8.1 percent. The OCC’s recommendations would result in a nominal increase to monthly wastewater rates of 75 cents for the average residential consumer.

The OCC also is seeking to maintain or improve water quality, improve low-income programs, properly address conservation plans and make other improvements that will adequately protect consumers.

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.