The Office of the Ohio Consumers’ Counsel (OCC) continues to fight the migration of distribution system cost recovery from volumetric to fixed charges. This time it’s a plan by Vectren Energy Delivery of Ohio that the OCC is resisting.

The OCC says the shift proposed by Vectren — approval of which has been recommended by Public Utilities Commission of Ohio (PUCO) staff — would raise fixed charges from $7 to $16.75/month during winter months while lowering the volumetric charge. A $10 fixed charge would be in effect during the other months, May-September. “Overall, Vectren is requesting a rate increase of $27 million, and the OCC believes it should only be $3 million,” the consumer advocate said Thursday.

Raising the fixed charge has a disproportionate impact on low-income and low-usage customers, the OCC said. “Not only does this approach discourage residents from conserving energy, but research supports the conclusion that the low-income and elderly population will be put more at risk by adopting this approach,” said Consumers’ Counsel Janine Migden-Ostrander.

As part of its testimony filed with the PUCO, the OCC also is seeking the availability of additional payment arrangements for customers having difficulty paying their bills.

The OCC fought and lost a battle to prevent Duke Energy of Ohio from recovering a greater proportion of delivery costs through a fixed charge (see Daily GPI, July 24).

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