CITIZEN POWER
Public Policy Research Education and Advocacy
F O R I M M
E D I A T E R E L E A S E Contact: David Hughes
November 5, 2003 412/421-6072
TONGREN REPLACEMENT ONLY FIXES PART
OF THE PROBLEM; CITIZEN POWER SAYS THE BUCK STOPS AT THE PUCO AND CALLS ON THE
GENERAL ASSEMBLY TO REIGN IN PUCO
MADISON, Ohio, November 5/PR
Newswire—Citizen Power welcomes the resignation of Consumers’ Counsel Robert
Tongren. However, replacing Tongren will only fix a small part of a generalized
imbalance in Ohio government dealings on utility issues, according to executive
director David Hughes.
Citizen
Power was a party to the FirstEnergy restructuring proceeding before the Public
Utilities Commission of Ohio and opposed the settlement in that case that PUCO
approved in July 2000. “We were aware of the LaCapra Study and were excited
about the impact it would have when it was made public,” said Hughes. “When
Tongren signed off on the FirstEnergy settlement we knew he sold out because he
agreed to give FirstEnergy billions in transition charges that his own
consultant said it was not entitled to collect. Tongren should pay the price
for this, but the real culprit is PUCO.”
Only
15 of the 51 parties in the FirstEnergy restructuring case signed the settlement.
Citizen Power urged PUCO not to approve the settlement because it contained
provisions that were clearly harmful to ratepayers. “Freezing our rates 40% above where they should be was no
bargain,” said Hughes. Citizen Power appealed PUCO’s decision to approve the
anticompetitive provisions to the Ohio Supreme Court but the Court refused to
hear the case.
“The PUCO approved an
anticompetitive settlement and now we see the result of this bad deal. There is
no competition in Ohio and now utilities are essentially blackmailing PUCO into
approving an extension of stranded cost collection, or risk price gouging after
the Market Development Period ends in 2005,” Hughes continued.
“PUCO is supposed to protect both
the utilities and the ratepayers, but its track record is clearly pro
utilities. A new Consumers’ Counsel will not have the necessary leverage to
extract concessions from utilities if the PUCO remains so pro utilities,” said
Hughes.
“Tongren was instrumental in
permitting settlements that killed competition, but the buck stops at the
PUCO,” Hughes said. “PUCO has refused to implement the spirit of Senate Bill 3
and is making rules that allow utilities to increase market power through
unfair advantages. That is why, other than the Northeast Ohio Public Energy
Council, consumers have no choices. Once the MDP is over, PUCO will not be able
to stop legal price gouging and the destruction of NOPEC.”
Mr. Hughes testified at the Ohio
Senate Public Utilities Committee hearing on electricity deregulation last
week. He urged Senators to reign in PUCO while there is still time. “If the
legislature doesn’t act now, California-like problems are sure to eventually
occur here. Tongren’s resignation will
not change that reality,” Hughes concluded.
#