Ohio watchdog: Utility upgrade costs need controls


CSA Z462 Arc Flash Training - Electrical Safety Compliance

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 6 hours Instructor-led
  • Group Training Available
Regular Price:
$249
Coupon Price:
$199
Reserve Your Seat Today
Ohio's utility watchdog says she'll fight for more accountability from giant utility companies as they make the expensive conversions to green energy and extended cell phone, wireless and broadband coverage.

Ohio Consumer's Counsel Janine Migden-Ostrander said many of America's utility networks are poised for upgrades over the next five years as infrastructure wears out, new energy sources are found, technology improves and national environmental priorities shift.

As the lawyer for ratepayers, she said the upgrades are largely needed but she doesn't want consumers overpaying for them.

"When you throw $100 million at a utility and say, 'Go do it,' you never know how efficiently and cost-effectively they've spent it — especially when they're being paid as they go," said Migden-Ostrander, who is marking five years in office this year. "So if we're going to do this, we're going to have to make sure we do it as leanly, as efficiently, with as much accountability as possible."

Holding utilities accountable is part of Migden-Ostrander's job description. She got the appointment after her predecessor, Robert Tongren, resigned in late 2003 after acknowledging he kept a consultant's report from the public that could have meant billions in customer savings when Ohio's electric market was deregulated in 2000.

Beefing up the office's records retention policy was Migden-Ostrander's first order of business after the scandal, she said.

She also discontinued side deals for special power discounts that often were part of rate settlements, such as the one among FirstEnergy, a group of major power users and Tongren's office in 2000. Migden-Ostrander was a lobbyist for Enron, a FirstEnergy competitor, at the time.

"We have tried very, very hard to let the public know that we are there to serve them, to help them, and in a very public way," she said.

Migden-Ostrander sees her next big challenge as controlling how much consumers pay for infrastructure upgrades and expansions. She advocates cost limits on utilities seeking to install new or improved equipment, the filing of detailed reports on their construction plans, and audits after construction of the projects' expenses.

Ellen Raines, a spokeswoman for Akron-based FirstEnergy, said the utility has been responsible in its infrastructure investments for more than 100 years.

"And over the past four years our investments have helped reduce the average duration of power outages by 40 percent while maintaining 1990 rates," Raines said. "So we think we've done a very good job of investing appropriately to ensure customers are provided with reliable, responsive service."

Migden-Ostrander said her office fights constantly to keep utility rates in check, and there will be an even greater temptation for utilities to seek higher rates as they replace infrastructure. But, she said, turning to customers to offset infrastructure costs may prove difficult.

"Take a look at our economy: 1 in 10 customers having been disconnected from utility service, unemployment at record high rates, 22 percent of the population at 175 percent of the poverty guideline or below. Where is this money going to come from?" she said.

Bill Spratley, the state's first Consumer's Counsel in the 1970s and Migden-Ostrander's mentor, said in the past five years Migden-Ostrander has taken a no-nonsense approach to the role he played with an activist's fire.

"My perception is she's probably been a little more restrained than I was, probably because I had a little bit more political support at the time," he said.

Sandy Buchanan, executive director of Ohio Citizen Action, said coal interests — including power companies that own coal-fired plants — are still a powerful political force in the state.

"She has very much kept with the goals she went in with, in terms of protecting consumers up against very difficult odds," she said of Migden-Ostrander.

Related News

Electricity rates are about to change across Ontario

Ontario Electricity Rate Changes lower OEB Regulated Price Plan costs, adjust Time-of-Use winter hours and…
View more

US January power generation jumps 9.3% on year: EIA

US January power generation climbed to 373.2 TWh, EIA data shows, with coal edging natural…
View more

Opinion: The awesome, revolutionary electric-car revolution that doesn't actually exist

Ecofiscal Commission EV Policy Shift examines carbon pricing limits, endorsing signal boosters like subsidies, EV…
View more

UK Emergency energy plan not going ahead

National Grid Demand Flexibility Service helps stabilise the UK grid during tight supply, offering discounts…
View more

Demand for electricity in Yukon hits record high

Yukon Electricity Demand Record underscores peak load growth as winter cold snaps drive heating, lighting,…
View more

Alberta Advances Electricity Plans with Rate of Last Resort

Alberta Rate of Last Resort provides a baseline electricity price, boosting energy reliability, affordability, and…
View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.