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The Affordability Gap High Customer Charges and Fixed Charges

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

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The Affordability Gap High Customer Charges and Fixed Charges

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  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

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

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