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2007 018 Resolution
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2007 018 Resolution
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Last modified
11/19/2018 4:03:05 PM
Creation date
8/29/2018 4:43:39 AM
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Legislation-Meeting Minutes
Document Type
Resolution
Number
018
Date
11/26/2007
Year
2007
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customers. This would enhance the opportunity that a choice for aggregation customers will <br />be available in Ohio in the future. <br />B. Eliminate Deferrals. Ohio utilities have a history of seeking full collection of <br />many costs, only to moderate their request by offering to defer a portion of the charges. If the <br />utilities want to include new non-bypassable charges for generation, fuel, generation <br />investments, or other items that have been deferred, Ohio should recognize .the very <br />significant costs already paid by consumers through transition charges since 2001. Governor <br />Strickland's plan recognizes these sizable costs already paid by Ohio ratepayers. While <br />returning to cost-of-service regulation may not be practical or possible, consumers have paid <br />utilities billions towards paying off utility assets over the past 7 years. Any new increases, <br />even those tied to past deferrals, must be moderated to recognize the costs already paid by <br />Ohio ratepayers. <br />C. True-up. Any future charges, caps, or deferrals applied to Ohio electric <br />consumers' bills should include true-up or re-look audit mechanisms to ensure consumers are <br />not being overcharged. If audits had been in place during the past seven years; utilities' <br />windfall revenues may have been moderated. <br />D. Extended Period. Governmental opt-out aggregators currently must provide <br />customers an opportunity to exit the aggregation without penalty every 2 years. Our <br />experience has been that consumers who initially choose to participate in the aggregation <br />choose to continue in the aggregation every 2 years at an extraordinarily high rate. The net <br />result is that this provision limits the governmental aggregators' ability to secure longer term <br />supply arrangements that could be highly beneficial to these consumers. Extending the opt- <br />out period to up to 5 years would provide Ohio's governmental aggregators additional <br />opportunities to secure consumers' savings. <br />E. No governmental aggregator switching fee. In the past, opt-out governmental <br />aggregators were charged switching fees that other groups or consumers did not pay when <br />consumers chose to participate in the aggregation. This is a barrier to market entry. For <br />NOPEC alone, the initial switching fee is $2.5 million, -for simply making a computer change <br />on the bills. NOAC and NOPEC believe this switching charge is not justified, is <br />discriminatory and serves only to benefit the utilities and reduce competition. <br />F. Revisit Utility Tariffs. The PUCO should revisit utility tariffs to ensure that <br />market barriers to governmental aggregation are removed. Items such as payment, bad debt <br />expense, stay-out periods for enrolling customers and others need to be reviewed to promote <br />governmental aggregation. <br />zis7oz9vi
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