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Update

Arguing for Fair Utility Rates before the Ohio Supreme Court

By Daniel Abrams, Senior Associate Attorney

This week, I had the opportunity to argue before the Ohio Supreme Court in a case regarding Columbia Gas’ fixed customer charges for gas service. 

In 2023, the Public Utility Commission of Ohio (PUCO) approved a large increase in the fixed monthly charges Columbia Gas could collect from all residential customers. Along with my colleagues at ELPC and the Citizens’ Utility Board of Ohio, we are challenging two major terms of the PUCO’s order.

First, the PUCO’s decision allowed Columbia Gas to raise its fixed monthly charge from $36 to $58 per customer — a fee that customers must pay regardless of usage, and before they even turn on their gas. This charge harms low-use (often low-income consumers) who are charged equally to higher volume consumers. Second, the Commission approved the elimination of Columbia Gas’s energy efficiency programs, which provided rebates and incentives to customers to reduce energy usage.

These programs save customers money by reducing their bills and save all ratepayers money by reducing peak demand and system-wide costs. In its initial application, Columbia projected that these programs would have saved the system over $284 millions over the life of the rate case.

We appealed the PUCO’s decision, arguing that it is unjust and unreasonable, does not benefit ratepayers and public interest, and violates regulatory practices. The PUCO’s Order improperly increased fixed charges which places a disproportionate burden on low-income households while eliminating energy efficiency programs that previously helped customers conserve energy and save money. The PUCO’s Order also ignores the interplay between these two terms – higher fixed charges compensate Columbia for its support of energy efficiency programs. When those programs are cut, the rationale for high fixed charges disappears.

With energy costs increasing across Ohio, the PUCO should be doing everything possible to help residents reduce their bills and energy use.

Daniel Abrams

Daniel Abrams,

Senior Associate Attorney

Daniel Abrams is a Senior Associate Attorney at ELPC. His practice is focused on energy law and combatting climate change and fossil fuel infrastructure development.

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