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

2. 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

3. 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

4. An Example of the Riders

5. 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%

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

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

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