Area residents will be heard on gas rates
By JANINE MIGDEN-OSTRANDER
Today’s economy is challenging for Ohio’s residential consumers. The prices of many products and services are going up, and most people feel powerless to control costs. At least with regulated utilities, consumers are sometimes given the ability to express their opinions. Participating in an upcoming local public hearing about Dominion East Ohio’s delivery rates is vital.
Residential customers in the Mahoning Valley will have an opportunity to express their opinions on the utility’s proposed delivery rate increase during a hearing Monday at 2 p.m. in the Youngstown City Hall.
Dominion East Ohio has proposed to increase rates by $75 million per year. Based on Dominion filings, this would mean a 16.9 percent increase in the delivery portion of customers’ bills in areas the utility serves in northeast and southeast Ohio, or over $5 more each month. But that is only part of the story.
In addition, the utility is seeking approval to begin a 25-year Pipeline Infrastructure Replacement plan at an estimated cost of approximately $2.5 billion to all consumers (industrial, commercial and residential). This would be equal to hundreds of millions of dollars in additional revenue paid by consumers. The extra fee charged to customers would be $1.12 per month during the first year, with the monthly fee going up as much as 90 cents each year. For example, Dominion estimates that customers would pay $8.88 per month for the pipeline replacement in 2019.
Meter reading devices
The utility is also proposing a $126.3 million plan to retrofit automated meter reading devices on all 1.3 million gas meters in its service territory. Dominion has identified that the additional cost of installing the automated meter reading would be approximately 25 cents per month on customers’ bill during the first year with increases to that monthly charge in future years.
The local hearings will be held by the Public Utilities Commission of Ohio which regulates investor-owned electric utilities and makes rate decisions. The Office of the Ohio Consumers’ Counsel, the residential utility consumer advocate, will attend the hearings and be available to answer residents’ questions.
Based on the OCC’s review, Dominion East Ohio does not need a revenue increase.
The level of the flat rate customer charge is another point of contention in the Dominion East Ohio rate case. The PUCO staff has recommended more than doubling Dominion East Ohio’s flat rate customer charge from $4.38 (Northwest Ohio) and $5.70 (Northeast Ohio) per customer per month to $17.50 per customer per month for all Dominion residential customers, while reducing the corresponding volumetric charge. The OCC opposes raising the flat-rate customer charge because such a change in the rate structure would negatively impact customers who attempt to conserve energy and results in low-use customers subsidizing high-use customers. This rate structure will also unfairly impact low-income customers at a time when the economy is stretching everyone’s budgets.
Decision makers need to hear from those who will be impacted by the higher bills at the upcoming public hearing.
In addition, letters can be written to the PUCO. All letters and envelopes should reference Case Number 07-829-GA-AIR and be sent to:
Public Utilities Commission of Ohio
Attn: Docketing Division, 180 E.
Broad Street, Columbus, OH 43215.
For more information about the rate case or testifying at the hearing, consumers can visit www.pickocc.org or call 1-877-PICKOCC (1-877-742-5622).
X Janine Migden-Ostrander is Ohio’s Consumers’ Counsel in Columbus.