Consumer call center continues tradition of service
The PUCO Consumer Call Center is the PUCO’s direct link to the public. Each day, callers from throughout the state contact PUCO representatives seeking assistance with utility issues. PUCO representatives are able to answer questions, offer suggestions to callers seeking assistance with their utility bills and mediate disputes between customers and utility companies.
In one instance, a PUCO investigator was able to save a residential customer more than $12,000 concerning a billing dispute with a natural gas company. A commercial customer saved more than $60,000 when a PUCO investigator helped resolve an issue with a telephone company.
In total, PUCO investigators saved Ohio consumers more than $600,000 in 2008. The PUCO also learns a great deal from customers that call in with questions and complaints. This information is used to ensure that companies engage in fair and reasonable practices. It also helps the PUCO to formulate rules and regulations. The call center is an invaluable asset to the PUCO.
PUCO helps Ohioans stay warm
The PUCO issued the 2008-2009 Winter Reconnect Order on Sept. 10, 2008. The Winter Reconnect Order allows customers that have been disconnected for nonpayment, or who have been threatened with disconnection, to have the service maintained or restored provided they make payment arrangements with their natural gas or electric company and pay $175 plus a reconnection fee or their outstanding balance, whichever is less. Any Ohioan can use the Winter Reconnect Order one time during the winter heating season. New for this heating season, customers who have no previous balance with the utility may use the Winter Reconnect Order to establish service. During the 2007-2008 Winter Heating Season, nearly 350,000 customers utilized the Winter Reconnect Order.
In addition to the Winter Reconnect Order, the PUCO took action to protect the Ohioans most at risk for losing their home heating source this past winter. On Dec. 19, 2007, the PUCO issued an order prohibiting natural gas and electric companies from disconnecting service to residential customers whose household income is at or below 175 percent of federal poverty guidelines. This prohibition, or “moratorium,” expired on March 18, 2008. The moratorium did not forgive utility bill payments and participating customers remained responsible for payment of the entire amount owed their natural gas or electric company.
Cheryl Roberto appointed to PUCO
Cheryl Roberto was appointed to the PUCO by Governor Ted Strickland in 2008. In her previous post as director of the city of Columbus Public Utilities Department, Roberto led a staff of 1,300 people, managed an operating budget of $400 million and directed a capital program of $250 million. With these resources, she and her staff provided abundant, safe drinking water and environmentally responsible wastewater treatment for more than 1 million customers in Central Ohio. Working with elected officials, community activists and business leaders, she restructured the city’s water and electricity rates, encouraged conservation and established a regulatory compliance program.
Before life as a public sector executive, Commissioner Roberto enforced environmental and consumer protection laws as an assistant attorney general in the state of Ohio and as an assistant general counsel in the commonwealth of Pennsylvania. She also served as legal counsel to the cities of Columbus, Ohio and Erie, Penn. and lectured in political science at Pennsylvania State University. Commissioner Roberto received her B.A. with honors from Kent State University and her Juris Doctor from the Moritz College of Law at The Ohio State University.
Reaching out across Ohio
Informing Ohio’s citizens about utility-related issues is one of the many important jobs of the PUCO. PUCO representatives travel across Ohio speaking to consumers ranging from low-income families to senior citizens to professionals working in energy-related fields. The PUCO also appeared at the Ohio State Fair, Ohio Farm Science Review, Columbus Women’s Expo and several community-sponsored events. In addition to speaking engagements, the PUCO’s Web site, www.PUCO.ohio.gov, was visited more than one million times.
Energy Plan for Ohio
Gov. Strickland signed Substitute Senate Bill 221 into law on May 1, marking the one year anniversary of the date he outlined his “Energy, Jobs, and Progress Plan” to stabilize electricity prices, create jobs, and expand the green energy industry in Ohio.
The new law outlines a path for electric utilities to implement market-based pricing while still incorporating a system under which rates would be set by the PUCO. The law also contains an advanced energy portfolio standard that requires that by 2025, 25 percent of electricity sold by Ohio’s electric distribution utilities or electric services companies must be generated from energy sources advanced technologies, including renewable energy and clean coal generation.
The law sets annual benchmarks, or incremental percentage requirements for renewable energy, through 2025. Each utility and electric services company is subject to compliance payments if the annual benchmarks are not met. Utilities and electric services companies may purchase renewable energy credits to meet the renewable portion of the standard. Proposed rules implementing this portion of the bill are under review by the Commission.
AEP, Duke Energy and FirstEnergy file electric security plans
With the passage of SB 221, American Electric Power (AEP), Duke Energy Ohio and FirstEnergy filed electric security plan (ESP) applications on July 31, 2008. The ESPs are the companies’ plans for the supply and pricing of electric generation service over the next three years following the expiration of the RSPs at the end of 2008. In addition, First Energy also filed a Market Rate Option (MRO).
Local Public Hearings were held throughout the state to give members of the public an opportunity to express their views regarding the ESPs. The PUCO also heard testimony from its staff, each company, consumer groups and several other interested parties. Each of these is an important step before the Commission issues a decision in each ESP case.
On Nov. 25, 2008, the PUCO denied FirstEnergy’s market rate offer application. Duke’s ESP was approved by the Commission on Dec. 17, 2008. On Dec. 19, 2008, the PUCO modified and approved FirstEnergy’s ESP. AEP’s ESP is expected to be ruled on in early 2009.
Dayton Power & Light implements green pricing program
Renewable energy resources have caught the attention of many utility customers during the last several years. Rather than go through the expense of installing a windmill, solar panels or other source of renewable energy, many utility customers across the U.S. have opted to purchase power generated from renewable resources.
In 2008, the PUCO approved a plan for Dayton Power & Light (DP&L) to begin offering a green pricing option to its consumers. Under the program, customers may choose to purchase renewable energy credits (RECs) as a premium to their electric bill. While purchasing RECs does not guarantee that the power delivered to a customer came from a renewable resource, purchasing RECs is guaranteed to help fund the advancement of renewable technologies.
DP&L customers who choose to participate in the program will be able to buy blocks of 100 kilowatt-hours (kWh) for $1 each, with a minimum purchase of 200 kWhs. Customers may enroll for only one month, or set up regular monthly agreements. The program is scheduled to run through the end of 2009. Afterwards, DP&L may seek PUCO approval to extend the program.
PUCO approves Columbia’s Infrastructure Replacement Program
Safety is a top priority of the PUCO. The PUCO’s natural gas pipeline safety inspectors check everything from natural gas transmission lines, which carry natural gas under high pressure from as far away as the Gulf of Mexico, to the distribution lines that serve neighborhoods. In any major incident where more than $10,000 of property damage occurs, the PUCO completes a thorough formal investigation to determine the cause.
Following the discovery of several natural gas leaks linked to a faulty piece of equipment known as a natural gas riser, which connects a customer’s natural gas service line to the natural gas meter, the PUCO became concerned and opened an investigation in April 2005. The PUCO sought to determine if any specific type or types of risers were especially prone to failure and hired an independent laboratory from Akron to conduct tests on natural gas risers throughout the state.
In November 2006, the PUCO issued a staff report based on the results of the laboratory testing. In the staff report, it was noted that a few particular types of risers were prone to failure. In January 2007, PUCO Chairman Alan R. Schriber sent a letter to Ohio’s natural gas distribution companies urging them to complete a survey of the customer-owned natural gas services lines in their territories to determine how many of the risers known to be prone to failure were currently in service. Because, under Ohio law, the customer is responsible for the installation and maintenance of their natural gas service line, concerns were raised about the remedy to this potentially dangerous situation.
On April 9, 2008, the PUCO approved an agreement implementing Columbia’s infrastructure replacement program which, among other things, allows Columbia to assume responsibility for the immediate repair and replacement of hazardous customer service lines and for the replacement of prone-to-failure risers over a three-year period. In addition, the PUCO allowed customers who had already replaced a prone-to-failure to apply for reimbursement from the company.
The PUCO is concerned for the safety of all Ohioans. By giving the company responsibility for replacing risers that are prone to failure, customers without the means to replace these components themselves will not be forced to choose between safety and other necessities.
PUCO restructures natural gas Percentage of Income Payment Plan
The Percentage of Income Payment Plan (PIPP) is a program designed to assist low income customers in paying for their natural gas bills. Customers whose yearly household income is 150 percent or less of the federal poverty level may pay a certain percentage of their income to maintain their natural gas service. The PIPP program was first implemented over 25 years ago and has allowed thousands of Ohioans to stay warm during the colder winter months. The new rules are the first major revisions made to the natural gas PIPP program since its inception in 1983.
The revised rules, approved by the Commission on Dec. 17, 2008, will lower the monthly payments of PIPP customers from 10 to 6 percent of their income. The Commission believes this will make payments more affordable as well as encourage more timely payments by PIPP customers.
A new program will also be implemented to encourage customers to make PIPP payments on time. For each payment made on time, 1/24 of customers’ total arrearages will be credited. The Commission believes this will help the customer from falling deeper into debt. This arrearage credit program will also help control PIPP program costs by encouraging responsible payment behavior.
Vectren customers receive natural gas through Standard Service Offer
In April, the PUCO approved an agreement that allows Vectren Energy Delivery of Ohio (Vectren) to change the way it purchases natural gas for its customers. Under its proposal, instead of Vectren purchasing natural gas, several competitive suppliers would purchase the natural gas for Vectren customers. Vectren would still deliver the natural gas, read meters and service pipelines.
In August, an auction was conducted and competitive suppliers bid to serve groups of customers and determine the retail price adjustment rate. The auction resulted in a rate of $2.35 per Mcf, which was added to the monthly NYMEX settlement price to determine the rate Vectren customers would pay for natural gas. The resulting rate is known as the Standard Service Offer, or SSO. The SSO varies from month to month, much like the gas cost recovery rate it replaces.
The PUCO is carefully monitoring the SSO and intends to evaluate the long-term implications of the SSO before moving to the next phase of the program where all eligible customers would have to choose a supplier on their own. An evaluation will be conducted in March 2010 when the SSO program expires to determine what next steps should be taken.
PUCO approves natural gas distribution rate changes
This year, the PUCO adopted agreements that allow Columbia Gas of Ohio, Dominion East Ohio and Duke Energy Ohio to increase the rates they charge for natural gas distribution service. The companies will also implement a new “levelized” residential distribution rate structure that better reflects the fixed cost nature of delivering natural gas. Before adopting the agreements, the PUCO listened to hundreds of consumers and took their testimony into consideration at hearings held across Ohio.
Natural gas bills are comprised of two main parts – the cost of the gas and the cost of delivering the gas to homes. The distribution rate pays for all the things that the utility company must do to deliver natural gas to customers, including the cost of installing and maintaining gas pipelines, reading gas meters, processing bills and taking customer service calls.
Previously, a fixed monthly customer charge paid for a portion of the gas delivery costs. This fee covered things like meter reading, billing and customer service. The remaining cost of delivering natural gas was billed to customers based upon the amount of gas they used each month. This resulted in customers paying for more of the costs of delivery during the winter, when bills are at their highest.
Under the new “levelized” distribution rate, customers will pay a flat monthly charge to cover their share of the fixed distribution costs that do not change with natural gas usage. A lower usage-based gas delivery charge will make up the remainder of the distribution rate. The flat monthly charge will help balance out, or “levelize,” between the summer and winter, allowing customers to better predict and budget for bills from month-to-month.
The cost of natural gas, which makes up 75 to 80 percent of bills, will continue to be passed on to customers through Dominion’s standard service offer charge, Columbia and Duke’s gas cost recovery charge or a gas marketer’s rate. Either way, the utility makes no profit on this part of the bill. Customers who make conservation efforts and energy efficiency investments will continue to see cost savings on this part of their bill.
Ohio’s Natural Gas Choice program
Ohio has one of the most successful natural gas choice programs in the nation. More than half of Ohio’s natural gas customers can choose the company that supplies their natural gas. Customers of Ohio’s four largest local distribution companies, Columbia Gas of Ohio, Dominion East Ohio, Vectren Energy Delivery of Ohio and Duke Energy Ohio, can choose the company that serves their natural gas needs. The local distribution company continues to maintain pipes, read meters and bill customers.
As of June 2008, nearly half of all eligible customers in Ohio were participating in natural gas choice. The PUCO helps inform consumers about the options available to them by producing an Apples to Apples comparison chart for each of the four distribution company’s service territories. The chart contains information from marketers currently offering natural gas to consumers and information about the local distribution company’s current rate. Customers can also use the Interactive Calculator at www.PUCO.ohio.gov to see a comparison of what their bill would be if they switched to a marketer or stayed with the local distribution company. Customers without Internet access may also have an Apples to Apples chart mailed to them by contacting the PUCO’s toll-free number at (800) 686-PUCO (7826).
In addition to individual customers choosing a natural gas supplier, communities are able to form an aggregation group, which bundles all natural gas customers in a community together and allows leaders from the area to negotiate natural gas rates on their behalf. Currently, more than 100 communities across the state have formed aggregation groups.
Enhanced wireless 9-1-1 fund
Ohio’s Wireless Enhanced 9-1-1 (E-9-1-1) Fund was created in 2005 to assist local emergency response organizations in upgrading facilities and equipment to enable them to receive information transmitted when a 9-1-1 call is made from a wireless phone. Through these enhancements, emergency responders are able to use technology that assists in locating callers that may be unable to give their exact location. On Dec. 18, 2008 the Ohio General Assembly passed Senate Bill 129, extending the surcharge through the end of 2012 and reducing the surcharge from 32 to 28 cents a month.
This year, 15 counties received approval of their E 9-1-1 plans. In a period of less than three years, all of Ohio’s 88 counties have now been approved for wireless enhanced 9-1-1 funding, and more than 50 counties have implemented Phase II of E9-1-1 which allows emergency operators to pinpoint the location of callers using advanced technology.
The PUCO collects and disburses funds paid by wireless subscribers to individual county emergency response organizations. The PUCO and Ohio 9-1-1 Council review the expenditures submitted by each county to ensure funds are properly expended. To date, more than $85 million has been disbursed by the PUCO.
PUCO revises rules regarding telephone service disconnection
In November, the PUCO revised and adopted a rule intended to put incumbent local telephone companies (ILEC) on an equal footing with competitive local telephone companies and unregulated phone companies. The revised rule also ensures that customers are still guaranteed certain consumer protections.
Under the new rule, an ILEC may disconnect a customer who does not pay the full amount of their telephone package price or any past due charges. The revised rule includes a provision that would allow a customer to have basic local telephone service reconnected by paying an amount to cover the ILEC’s rate for basic local telephone service, including associated taxes and government mandated charges (such as 9-1-1), and any applicable deposit and reconnection charge. The customer must also enter into a payment plan with the company to pay off the past due amount owed.
Previously, ILECs were the only telecommunication companies that could not disconnect customers who paid only portions of their bills. With the new rules, ILECs will be able to remain competitive with alternate suppliers. The revised rule does not affect any of the other billing and disconnections protections provided by the minimum telephone service standards.
PUCO directs Verizon North to improve service quality
The mission of the PUCO is to ensure that all customers have access to safe and reliable utility services. The PUCO regularly inspects and enforces specific safety and reliability requirements to ensure this goal is achieved.
In March, the PUCO directed Verizon North, Inc. (Verizon) to forfeit $250,000 toward broadband initiatives in collaboration with Connect Ohio Initiatives, Inc. and in cooperation with the Ohio Broadband Council for failure to meet certain service quality standards.
The Commission found that Verizon failed to satisfy district-specific service levels as it relates to the company’s out-of-service performance. Out-of-service is a condition where the customer is completely without service. Under the terms of an agreement reached with the PUCO in May 2007, Verizon has been required to maintain a monthly 24-hour out-of-service restoration rate of 85 percent in each district. During its review of the company’s performance, the PUCO discovered Verizon failed to meet this requirement in August 2007 in its Norwalk district, and again in December 2008 in its Portsmouth district.
The PUCO became aware of service quality issues in December 2005, when PUCO Call Center staff noticed an increasing number of complaints from Verizon customers about extended and repeated outages, missed repair appointments, line static and incomplete repairs. An audit conducted by PUCO Staff in November 2006 found that Verizon failed to meet provisions of the MTSS service outage standard. The staff report also confirmed Verizon did not meet MTSS requirements for out-of-service conditions, where the customer is completely without service.
Roadcheck
Hazardous materials travel through municipal areas in Ohio each day, often via commercial motor vehicles that pick up shipments from rail yards. Because these shipments are driven on city roadways rather than on highways, their transport sometimes goes unchecked. Recent efforts by PUCO hazardous materials inspectors are helping to ensure that hazardous materials traveling through municipal areas meet the required state and federal transportation safety regulations.
For three days in June, 15 PUCO inspectors worked across Ohio to conduct comprehensive inspections on vehicles, drivers, and cargo while participating in Roadcheck 2008. Roadcheck is an annual international transportation safety and security event sponsored by the Commercial Vehicle Safety Alliance.
PUCO inspectors conducted a total of 99 inspections during the three-day Roadcheck event. During the inspections, the inspectors found 147 safety violations and 32 hazardous materials violations and placed 29 percent of the vehicles out-of-service. Thanks to the diligence of PUCO hazardous materials inspectors, these motor carriers were taken off of Ohio roadways until the appropriate safety measures were taken.
While PUCO motor carrier safety inspectors work every day to keep Ohio highways safe, Roadcheck highlights the combined efforts of law enforcement and the transportation industry to promote highway safety. The event has been held each year since 1988 in the United States, Canada and Mexico.
Hazmat Training Grants
The PUCO approved 13 hazardous materials training grants totaling $468,368 to local government agencies and educational institutions across Ohio in 2008. The grants will be used to train public safety and emergency services personnel in the proper techniques for the management of hazardous materials transportation and spills.
The PUCO awards hazardous materials planning and training grants to local government subdivisions, educational institutions and state agencies in Ohio. Money for these grants comes from fines paid by hazardous material carriers and shippers. Individual grants are based upon applications to the PUCO and are awarded on a reimbursement basis.
The PUCO has regulatory authority to conduct audits, inspections and safety reviews to evaluate the safety records, policies, and procedures of motor carriers, including hazardous materials carriers. The PUCO hazardous materials transportation program has been recognized by Battelle Memorial Institute as one of the best and most comprehensive such programs in the nation.
Routine vehicle inspection intercepts drug shipment
In March, a PUCO Hazardous Materials Specialist stopped a truck near Cincinnati for a routine vehicle inspection. The driver claimed to be hauling household goods from Reno, Nevada to East Point, Georgia.
During the course of his inspection, the inspector discovered the moving company did not have authority to operate, and the driver, who was under the required age of 21, did not possess a logbook. As a result of these violations, he placed the driver and vehicle out-of-service.
The inspector, who received drug interdiction training several years ago, became suspicious of the driver’s story and the route taken to deliver the furniture. He contacted the Hamilton County Sheriff’s Office to advise them of the unusual circumstances. The Cincinnati Police Department Regional Narcotics Team dispatched a K-9 unit to the site and discovered 452 pounds of marijuana packed into two antique piano cases which were part of the household goods in the truck.
PUCO specialists regularly conduct roadside inspections of commercial motor vehicles. Each inspection follows a thorough process to ensure that the driver and vehicle meet state and federal regulations.
Inspectors collect driver documentation and operating permits, interview the driver, identify the motor carrier, check for the presence of hazardous materials and explain the inspection process to the driver. They also check the condition of the driver for signs of fatigue and the use or possession of alcohol or illegal drugs. Vehicles and drivers that fail to meet these regulations may be placed out-of-service and cannot continue operating until they comply. This thorough inspection process helps the PUCO monitor and enforce motor carrier safety on Ohio’s highways.
Highway-Rail Grade crossing upgrades ordered
Ohio has more than 6,000 rail crossings throughout the state. The PUCO, along with the Ohio Rail Development Commission, is responsible for providing funding for the installation of warning devices at highway-rail grade crossings. In 2008, the PUCO approved funding for the installation of flashing lights and gates at 38 crossings throughout Ohio. Additional assistance was given for circuitry upgrades, vegetation removal, supplemental warning measures such as rumble strips and closing superfluous grade crossings. Many of the measures taken by the PUCO have helped reduce the number of fatal crashes at highway-rail grade crossings.
Ohio American Water rate case
In November 2007, Ohio American Water (OAW) filed an application to increase rates for water and wastewater services. In September 2008, PUCO staff, OAW, the Ohio Consumer’s Counsel (OCC) and other interested parties filed an agreement that addressed several water quality issues, provided improved customer service levels, and allowed the company to increase its rates.
Prior to filing an agreement, PUCO staff conducted infrastructure investigations, reviewed financial records and conducted several water quality tests. In a previous case, PUCO staff noted OAW had several water quality issues. There are several provisions in the agreement that staff included to address these water quality issues as well as offer further consumer protections for OAW’s customers.
Before approving the agreement on Nov. 12, 2008, the PUCO held hearings across OAW’s service territory in Mansfield, Marion, Galloway and Westerville to hear testimony from members of the public. The PUCO will continue to closely monitor the company’s progress in providing service to its customers.
PUCO approves agreement in Aqua Ohio rate case
On May 14, 2008, the PUCO approved an agreement allowing Aqua Ohio to increase rates for water and wastewater services. The agreement was filed by the company, the OCC, PUCO staff and other interested parties.
The agreement also addresses customer billing issues that customers in all of Aqua Ohio’s service territories had been experiencing. Aqua Ohio was given 30 days to correct its billing mistakes and prove to the PUCO that all customers were being properly billed, and any refunds were appropriately applied. Before issuing its decision, the PUCO heard testimony at local public hearings in Mentor and Montpelier.