Hillsboro contracts with law firm for representation in PUCO proceeding

The city of Hillsboro has contracted with an outside law firm to represent them in the proceedings with the Public Utilities Commission of Ohio, regarding AEP rates.

According to a contract signed last week, the city will pay $15,000 for the legal representation from the law firm Ice Miller, LLP.

Hillsboro Auditor Gary Lewis said that the contract with Ice Miller was finalized last week and that the funds will come equally from the general fund, the sewer plant and the water plant funds.

"They have been retained and a letter of intent was sent," Lewis said. "The water plant is a big user of electricity, and the sewer plant is also a big user. (The cost of the contract) will be divided evenly between all three funds, the sewer fund, the water fund and the general fund."

Calls placed to Hillsboro Mayor Drew Hastings and Hillsboro Safety and Service Director Richard Giroux were not returned.

Ice Miller has sent a motion to intervene to the PUCO on behalf of the city and its residential and commercial citizens.

The motion, filed with the PUCO, states that the city "has a real and substantial interest in these proceedings, that its interests cannot be adequately represented by any other party, and that the Public Utilities Commission of Ohio's disposition of the proceedings will impair or impede its ability to protect those interests. Hillsboro further submits that the legal positions and issues that it will advance are relevant to the merits of the proceedings and that it intends to contribute in a unique manner to the full development and equitable resolution of these proceedings."

According to the firm's website, they have locations in Columbus, Cleveland, Indianapolis, Chicago, Washington DC and DuPage County, Ill.

There are numerous PUCO hearings scheduled throughout the state, with the closest one being held May 1 at 6 p.m. at Ohio University in Chillicothe.

After numerous complaints from Highland County small business owners and other consumers over excessive increases in their recent AEP bills, last month PUCO ordered AEP to restore its rates to December 2011 levels.

In late February, the commission disapproved AEP-Ohio’s electric security plan (ESP) as it was outlined in a settlement agreement submitted by 21 of 31 parties to the case.

Lewis, along with Hillsboro City Council President Lee Koogler, said they felt retaining Ice Miller was a good decision for the city, in spite of recent concerns regarding the city's general fund.

With so many areas of specialization for attorneys, Lewis said that it made sense for the city to contract with a law firm that specializes in dealing with power companies. He noted that Ice Miller has a history of dealing with AEP, specifically.

"In my opinion, I believe that to receive a fair and proper hearing, it's worth it," Lewis said. "The formulas they use - the electric company - when they talk about the various tariffs and other items, it is sufficiently complex enough that really it is very hard for the public in general to understand. For all we know, AEP could have proposed a new SSO (Standard Service Offer) that could still be detrimental for Hillsboro and the citizens of Hillsboro. But we wouldn't know it until they actually go into effect, if we didn't fully comprehend what they are expecting the PUCO to pass."

As previously reported, in March, the general fund fell below $99,000. Lewis said that as of this week, the general fund was back up to approximately $200,000, saying, "it has been a good tax collection month."

The safety and service director of the city of Hillsboro may enter into contracts and expenditures for less than $25,000 without bringing the matter to council. 

Koogler, who is also an attorney, said that while city council was not consulted, Hastings had conferred with him Friday on contracting with Ice Miller.

"The mayor sent a memo to me for review, and we had a discussion on it," Koogler said. "I knew what it would take financially to get them to represent the city. We discussed the financial impact, and at that point the auditor and I felt (the mayor) should move forward."

When asked why Hillsboro Law Director Fred Beery or deputy law director Laura Curliss could not handle the matter, Koogler said the reasons were, "twofold. (Ice Miller) is somebody that specialized in the area, and they are also representing numerous parties (with regard to the PUCO). We felt that could save the city some of the overall costs, moving forward with the other parties. When you represent numerous parties in the same action, it brings the collective costs down because you're ultimately replicating work. "

Koogler also clarified that this was an "administrative action" with the PUCO and not a legal proceeding in a court.

"It is the city's position that we want to protect our residents and make sure that any rate plan is going to be fair for the residents of Hillsboro, and hopefully for all the people of Highland County," Koogler said.

Lewis said, "I hate that our general fund is in the shape that it's in. I still think that the situation is where we can't suspend governing. We have to do what is right by our constituents. Mistakes have been made. That's water under the bridge, and we have to deal with that. If our general fund is low, that is something the mayor and the safety and service director understand now that is something they have to contend with. We're doing what is right by our constituents, and I support them in that regard."