The Affordability Gap High Customer Charges and Fixed Charges Presented by: JIM WILLIAMS Consumer Protection Research Analyst

General Trends Increases in poverty level for several segments of the population Reductions in state median income Transition to straight-fixed variable pricing – higher monthly customer charge

General Trends Higher percentage of bill in distribution related charges Cost recovery through riders and surcharges Impacts some segments of the population more than others

An Example of the Riders

Gas and Electric Bills in Some Ohio Cities City Population Poverty Electric Bill Gas Bill Total May 2014 Total May 2004 Akron 195,182 26.8% $98.33 $84.33 $182.66 $182.34 Canton 70,725 30.8% $116.85 $201.18 $147.48 Cincinnati 285,778 29.4% $93.62 $99.69 $193.31 $161.46 Cleveland 388,144 34.2% $94.65 $178.98 $189.51 Columbus 771,624 22.0% $125.89 $99.12 $225.01 $167.71 Dayton 128,003 33.8% $107.36 $89.42 $195.97 $169.90 Toledo 280,082 $96.97 $196.09 $194.24 Youngstown 61,943 35.6%

Impact on Customers Higher percentage of income being spent on utilities Less control over the bill Less disclosure about major components/ charges on bill Bill payment and related collection difficulties

How can Commissions help Affordability consideration Collection of data Utility rate survey Target assistance programs Affordable payment plans Improved bill formats Incentives to conserve

QUESTIONS? Office of the Ohio Consumers’ Counsel THANK YOU! Presented by: JIM WILLIAMS Consumer Protection Research Analyst