Hastings, Rosenberger send strong message to AEP
Lead Summary
By
Rory Ryan-hcpress@cinci.rr.com
One year ago this month, in a Feb. 28, 2011 news release by American Electric Power, the electric utility company filed a request for an increase in its distribution rates.
By its own admission, AEP said the increase in a customer’s total monthly bill would be approximately $4.38 or 4.05 percent in 2012.
(The story is readily available online by searching "AEP distribution fees.")
Imagine our surprise – and others' – when our residential bill increased by 60 percent last month. The distribution fee was higher than the electricity cost.
Others, including residential consumers, businesses and public entities, have reported increases in their January statements that range from 40 percent to 700 percent.
Keep in mind, too, that the taxpaying homeowners and taxpaying small business owners – in addition to their own rate hikes – also ultimately foot the bill for the public usage and for those home energy assistance programs.
American Electric Power boasts that it is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states.
By comparison, The Highland County Press is not one of the largest electric utilities in the United States, nor are we delivering electricity – or news – to 5 million customers. Close, but not quite.
However, we are not totally without influence in Columbus and Washington.
Nor are a good number of local, state and national representatives.
This afternoon, Hillsboro Mayor Drew Hastings dispatched a well-written news release in which he "urged residents affected by AEP's rate increase to contact the Public Utilities Commission of Ohio (PUCO) seeking immediate intervention in the case. It is vital that PUCO hear immediately from anyone struggling with the lopsided rate and service fee increases. This is the most important action that each of us can take right now," he said.
The mayor said PUCO has re-opened the AEP rate case, with a file number of 11-346-EL-SSO, and said it was important that the case number be cited in all correspondence with the state.
County commissioners are accepting letters of concern over the increases at their office at the Highland County Administration Building.
Residents also may file a complaint at http://www.puco.ohio.gov/puco/.
Meanwhile, State Rep. Cliff Rosenberger has contacted PUCO Chairman Todd A. Snitchler, asking that the Public Utilities Commission reconvene at its earliest possibility.
"As representative for Highland County and the surrounding region, I have fielded numerous phone calls, e-mails, and local elected officials’ concerns regarding constituent’s January AEP electric utility bills," Rep. Rosenberger said.
"Rate increases, that were the result of 10 years of deferred debt, have caused utility bills to increase as much as 12 times the previous month’s charge. Claimants believe, and I agree, that AEP enacted an irresponsible and unsustainable plan to recoup debt of the last decade."
Mayor Hastings and Representative Rosenberger are right on this issue. (If we are to offer occasional criticism – and we will, let's also give credit where credit's due.)
By its own words, AEP warned of a 4-percent increase. AEP did not caution consumers that double- or triple-digit increases were on the horizon.
It's been suggested that AEP took advantage of one of the mildest winters in Ohio history to implement the huge increases. Perhaps the company gambled that consumers wouldn't notice.
But in southern Ohio, where double-digit unemployment has been the norm for the last half-decade, a similar spike in utility costs is an unwelcome shot in the dark. Let's not forget that the median household income in Highland County is below $40,000. There's just not a lot of excess in the ol' family budget, these days. Particularly in the private sector.
To their credit, AEP has been a good community citizen for many years.
When Joe Hamrock, AEP Ohio president and chief operating officer, said a year ago this month that “It (the increase) is vitally important to maintain adequate investment in the distribution infrastructure," we want to take him at his word.
When Mr. Hamrock said, "Current rates date back to the early 1990s, and through continuous improvement, we have managed to keep costs in line with those rates; this proposal will provide for ongoing investment to support customers’ expectations of reliable service at a reasonable cost," again, we want to take him at his word.
It's time now for AEP to issue a statement that might begin to correct this electrical quagmire. It's time for AEP to re-employ one of Highland County's own in sharing a message of renewed cooperation and good will. (If AEP isn't clear on that suggestion, just give me a call.)
To be sure, there are other, more drastic, options for some consumers. For small businesses, the options are few. But rest assured if AEP refuses to budge on these rates, every media in southern Ohio will be publishing stories about our options.
Rory Ryan is publisher of The Highland County Press.[[In-content Ad]]
By its own admission, AEP said the increase in a customer’s total monthly bill would be approximately $4.38 or 4.05 percent in 2012.
(The story is readily available online by searching "AEP distribution fees.")
Imagine our surprise – and others' – when our residential bill increased by 60 percent last month. The distribution fee was higher than the electricity cost.
Others, including residential consumers, businesses and public entities, have reported increases in their January statements that range from 40 percent to 700 percent.
Keep in mind, too, that the taxpaying homeowners and taxpaying small business owners – in addition to their own rate hikes – also ultimately foot the bill for the public usage and for those home energy assistance programs.
American Electric Power boasts that it is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states.
By comparison, The Highland County Press is not one of the largest electric utilities in the United States, nor are we delivering electricity – or news – to 5 million customers. Close, but not quite.
However, we are not totally without influence in Columbus and Washington.
Nor are a good number of local, state and national representatives.
This afternoon, Hillsboro Mayor Drew Hastings dispatched a well-written news release in which he "urged residents affected by AEP's rate increase to contact the Public Utilities Commission of Ohio (PUCO) seeking immediate intervention in the case. It is vital that PUCO hear immediately from anyone struggling with the lopsided rate and service fee increases. This is the most important action that each of us can take right now," he said.
The mayor said PUCO has re-opened the AEP rate case, with a file number of 11-346-EL-SSO, and said it was important that the case number be cited in all correspondence with the state.
County commissioners are accepting letters of concern over the increases at their office at the Highland County Administration Building.
Residents also may file a complaint at http://www.puco.ohio.gov/puco/.
Meanwhile, State Rep. Cliff Rosenberger has contacted PUCO Chairman Todd A. Snitchler, asking that the Public Utilities Commission reconvene at its earliest possibility.
"As representative for Highland County and the surrounding region, I have fielded numerous phone calls, e-mails, and local elected officials’ concerns regarding constituent’s January AEP electric utility bills," Rep. Rosenberger said.
"Rate increases, that were the result of 10 years of deferred debt, have caused utility bills to increase as much as 12 times the previous month’s charge. Claimants believe, and I agree, that AEP enacted an irresponsible and unsustainable plan to recoup debt of the last decade."
Mayor Hastings and Representative Rosenberger are right on this issue. (If we are to offer occasional criticism – and we will, let's also give credit where credit's due.)
By its own words, AEP warned of a 4-percent increase. AEP did not caution consumers that double- or triple-digit increases were on the horizon.
It's been suggested that AEP took advantage of one of the mildest winters in Ohio history to implement the huge increases. Perhaps the company gambled that consumers wouldn't notice.
But in southern Ohio, where double-digit unemployment has been the norm for the last half-decade, a similar spike in utility costs is an unwelcome shot in the dark. Let's not forget that the median household income in Highland County is below $40,000. There's just not a lot of excess in the ol' family budget, these days. Particularly in the private sector.
To their credit, AEP has been a good community citizen for many years.
When Joe Hamrock, AEP Ohio president and chief operating officer, said a year ago this month that “It (the increase) is vitally important to maintain adequate investment in the distribution infrastructure," we want to take him at his word.
When Mr. Hamrock said, "Current rates date back to the early 1990s, and through continuous improvement, we have managed to keep costs in line with those rates; this proposal will provide for ongoing investment to support customers’ expectations of reliable service at a reasonable cost," again, we want to take him at his word.
It's time now for AEP to issue a statement that might begin to correct this electrical quagmire. It's time for AEP to re-employ one of Highland County's own in sharing a message of renewed cooperation and good will. (If AEP isn't clear on that suggestion, just give me a call.)
To be sure, there are other, more drastic, options for some consumers. For small businesses, the options are few. But rest assured if AEP refuses to budge on these rates, every media in southern Ohio will be publishing stories about our options.
Rory Ryan is publisher of The Highland County Press.[[In-content Ad]]