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Consumers’ Counsel acts to protect                  Agency continued to investigate this case. The PUCO                           investigation into Duke’s disconnection practices. OCC   that Ohioans whose utility service is provided by a
        Duke customers from unwarranted                     independently audited the utility to determine the                            is participating for consumers in the investigation of   submetering entity should receive the same protections
        infrastructure investment charges                   utility’s rate base value. OCC will continue to advocate                      Duke’s disconnections.                             for price and reliability of service that non-submetered
                                                            for the interests of consumers in this case.                                                                                     Ohioans receive. In December 2015, to ensure that
        In 2017, Duke made several proposals to the PUCO that                                                                             In another case, Duke submitted a request to the PUCO   residential consumers of submetered utility service
        would unreasonably raise its customers’ rates.      FirstEnergy - 17-0334-EL-ATR; DP&L - 15-1830-EL-                              to at least temporarily waive the right of its customers   are protected, the Agency intervened in the PUCO’s
                                                            AIR, et al.                                                                   to receive in-person notification before electric service   investigation of submetering entities. The PUCO sought
        In March 2017, Duke filed a request to charge its                                                                                 is to be disconnected for nonpayment. The PUCO’s   comments on its ruling. OCC and other consumer
        customers an additional $169 million for a new smart   Consumers’ Counsel enters case                                             rules require electric utilities to provide residential   advocates jointly filed comments and reply comments
        meter infrastructure, including replacing all of its   to protect FirstEnergy consumers                                           consumers with in-person notice on the day their   in 2017. OCC also sought rehearing of the PUCO’s
        recently installed residential electric smart meters and   regarding significant increases in                                     service is to be disconnected for nonpayment. If the   rulings, challenging the rulings as not providing
        related communications technology.                  customer charges                                                              customer (or an adult resident of the household) is   adequate protection to customers.
                                                                                                                                          not at home, electric utilities must leave written notice
        The OCC opposed Duke’s proposal to charge customers   In April 2017, FirstEnergy submitted an application to                      at the customer’s home in a conspicuous place before   In December 2016, the PUCO ruled that a submetering
        for a new “smart grid” because Duke just finished   the PUCO requesting an increase in the fixed-charge                           disconnection. Duke, which has had one of the highest   entity is presumed to be a public utility if it charges
        installing its current system two years ago. The Agency   portion of its customers’ bills for distribution service                disconnection rates in the state, sought to remove this   residential utility customers more than the total bill
        questioned whether Duke had spent its customers’    (with a decrease proposed for the usage-based charge).                        important consumer protection for consumers who    of similarly situated customers on the local public
        money prudently. The case is ongoing.               For residential customers, the FirstEnergy proposal                           have smart meters that can be disconnected remotely.   utility’s default service. The PUCO sought comments
                                                            would increase the fixed charge from $4 per month to                          The Agency opposed Duke’s request, but the PUCO    on its ruling. OCC and other advocates filed joint
        In its distribution rate case, Duke also asked the   $25 per month over three years, beginning in 2019.                           approved Duke’s proposal as a two-year pilot program.   comments and reply comments in 2017. OCC also
        PUCO to approve a $15.4 million increase in the rates   Higher fixed charges are a consumer concern because                       AEP Ohio filed a similar request for a pilot program   sought rehearing of the PUCO’s ruling, challenging
        consumers pay for its distribution service. Additionally,  they deny the opportunity to consumers to save                         to allow disconnection without personal notice for   the holdings as not providing adequate protection to
        Duke asked the PUCO to increase the fixed charge on   money by reducing usage. Also, higher fixed charges                         consumers who have smart meters, which the PUCO    submetered customers.
        residential customers’ bills from $6 to $22.77 (and to   can hurt low-income and fixed-income consumers.                          approved over OCC’s objection.
        decrease the usage-based distribution charge). Higher   The OCC moved to intervene in the case on behalf of                                                                          PUCO Submetering Investigation - 15-1594-AU-COI
        fixed charges are a consumer concern because they   FirstEnergy’s nearly two million customers.                                   Duke - 16-1096-EL-WVR, 15-1588-GE-CSS,
        deny the opportunity to consumers to save money by                                                                                17-2089-GE-COI; AEP - 17-1381-EL-WVR               Consumers’ Counsel recommends
        reducing usage. The PUCO Staff recommended that the   FirstEnergy - 17-334-EL-ATA                                                                                                    limiting charges to consumers for
        PUCO reject Duke’s request and instead reduce rates by                                                                            Consumers’ Counsel recommends                      electric utility energy efficiency
        between $18.4 and $28.9 million. The PUCO Staff also   Consumers’ Counsel participates in                                         consumer protections from electric and             programs
        recommended a much smaller increase to fixed charges  the investigation of Duke Energy’s                                          water submetering (reselling) practices
        for consumers. The Agency collected relevant discovery  practices for disconnection of                                                                                               In 2017, the PUCO modified settlements for Duke
        and deposed Duke employees in order to challenge    consumers’ service                                                            A submetering entity is a third-party business that   Energy Ohio (Duke) and FirstEnergy to limit what
        Duke’s unreasonable requests. This case is also ongoing.                                                                          provides a utility service (usually electric or water)   consumers are charged for energy efficiency programs.
                                                            In 2015, the Agency and Communities United for                                by reselling the utility’s service to residents, such   The PUCO also approved settlements for AEP Ohio
        Duke - 17-0032-EL-AIR, et al., 17-1263-EL-SSO, et al.  Action (CUFA) jointly filed a complaint at the PUCO                        as apartment tenants or condominium owners.        (AEP) and Dayton Power & Light (DP&L) that included
                                                            regarding Duke’s practices for disconnection of                               Submeterers have charged consumers more for utility   limits on what consumers are charged for energy
        Consumers’ Counsel seeks consumer                   customers’ utility service for nonpayment. The Agency                         service than the consumers would have been charged   efficiency programs. The Agency represented residential
        protections from another DP&L-                      then filed a motion asking the PUCO to compel Duke                            as customers of the local regulated public utility. And   utility consumers in these cases and recommended
        proposed rate increase                              to respond to the Agency’s discovery (information)                            submetered consumers have been denied the many     establishing reasonable limits to these charges.
                                                            requests, after Duke refused to respond to the Agency’s                       regulatory protections that exist for consumers who
        On November 30, 2015, DP&L requested that the PUCO  requests for information regarding its disconnection                          directly purchase service from a public utility, including   The proposed utility charges include program costs
        approve a $65.8 million increase in the rates consumers  procedures. In 2017, after the PUCO did not act on                       protection from unreasonable disconnection. Further,   and utility profits (referred to as “shared savings”). The
        pay for distribution service. This proposal would   the Agency’s motion for nearly two years, the Agency                          consumers of submetered utility service are unable to   charges for these programs have been increasing. The
        result in a $4.07 monthly increase for a residential   asked the Supreme Court of Ohio to order the PUCO                          seek competitive electric service from another provider.   utilities’ charges for their energy efficiency programs
        customer with 1,000 kWh of usage. In 2017, the      to act. The PUCO then dismissed the OCC/CUFA                                  Up to now, submetering entities have generally not   are now among the highest surcharges on consumers’
                                                            complaint. At the same time, the PUCO opened an                               been regulated by the PUCO. The Agency advocates   electric bills. To protect customers, the Agency




        10       Office of the Ohio Consumers’ Counsel                                                                                                                                                                  Annual Report 2017   11
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