Advocates of needy urge limits on utility-rate raises

Illinois and Maryland have seen big increases in their electric bills.

By MARC KOVAC

VINDICATOR CORRESPONDENT

COLUMBUS — Groups that advocate for the needy called on the Ohio House to speed up its consideration of Senate-passed legislation related to the state’s electricity marketplace and urged members to keep changes to a minimum.

In particular, Progress Ohio, the Ohio Partners for Affordable Energy and the Ohio Association of Second Harvest Foodbanks are concerned about amendments that would allow utility companies to increase consumer rates.

One such amendment proposed during Senate deliberations on Senate Bill 221 would allow a 20 percent annual increase over three years, amounting to a 73 percent jump over that period, they said. For households in northeast or northwest Ohio, that would mean nearly $1,200 more per year.

“Utilities deserve a reasonable profit, but there’s a difference between profit and profiteering,” said Dave Rinebolt, executive director of Ohio Partners for Affordable Energy. “And a 73 percent rate increase is profiteering.”

SB 221 deals with the state’s electricity marketplace and energy usage. It stems from the Legislature’s action about eight years ago to deregulate the electricity marketplace in Ohio. Proponents at the time believed the move would lead to more competitive prices. But that has not been the case in states that recently have completed the switch to a deregulated marketplace; customers in places such as Illinois and Maryland have seen big increases in their electric bills.

In Ohio, rate stabilization is scheduled to end after 2008, meaning customers will face a fully deregulated marketplace in 2009 without some type of legislative action. After listening to weeks of public hearings and considering numerous amendments and versions of the legislation, the state Senate unanimously approved SB 221; it now is being considered by the House’s Public Utilities Committee.

On Tuesday, Progress Ohio raised concerns about amendments offered during the Senate committee process that would allow utility companies to increase their rates annually over the next three years.

“If they get their way, Ohio will have fewer jobs,” said Brian Rothenberg, executive director. “Ohio will have more poor people. This state can afford neither one.”

The amendments were not added to the final legislation. As it was approved by the Senate (and backed by Gov. Ted Strickland), SB 221 does not guarantee rates would go up, Rinebolt said.

But if those amendments are allowed during House deliberations, the resulting bill hits residential users — including low-income Ohioans who already are choosing between paying heat and electric bills or groceries, said Lisa Hamler-Fugitt, executive director of Second Harvest.

“Our legislators should ensure that consumer protections are retained so that we can create a regulatory framework that will produce rates that are just and reasonable,” she said.

Rinebolt also publicly asked the Ohio House to make the legislation a priority and opt for the version approved by the Senate.

“Holding hearings once a week tells me that electric restructuring is not a priority for the House,” he said.

But Rep. John Hagan, a Republican from Alliance who is chairman of the committee reviewing the bill, said the scheduled hearings are needed, and he countered any allegations that members were catering to utility companies.

The House committee has had two hearings on the bill, and sessions are scheduled through late January. It’s too early to know what the final legislation will look like, Hagan said.

mkovac@dixcom.com.