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Ohio Electric Choice |
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Ohio Electric Choice |
INTRODUCTION
As of January 1, 2001 Ohioans were allowed to choose their electricity supplier.
The General Assembly passed Am. Sub. S. B. 3 in June 1999. Governor Bob Taft signed it into law on July 6, 1999. The new law allows customers to choose their electricity supplier. Residential customers receive a 5% rate cut on electricity generation (totaling about $110 million statewide), plus a $30 million tax cut.
The Ohio Electric Utility Institute (OEUI) has been designated the contract administrator of the customer choice education program by the Public Utilities Commission of Ohio. For developments on customer choice education, see below.
Information and Developments
Hammond & Associates Joins
Electric Choice Consumer Education Team
Columbus, OH – The consumer education campaign to help Ohio residents learn more about the coming of electric choice took another step forward today with the announcement that Hammond & Associates will assist in the community outreach component of the campaign. Hammond & Associates, founded in 1990, is an African American-owned firm based in Columbus. The firm has extensive experience in issue management, community relations, minority affairs, public relations and marketing communications. Hammond & Associates joins the team assisting the Public Utilities Commission of Ohio, the Ohio Electric Utility Institute and the Ohio Consumers’ Counsel in implementing a consumer education program for the beginning of electric competition in January, 2001. A total of approximately $650,000 has been targeted for public relations and community outreach efforts. Of this amount, $250,000 will be directed to Hammond & Associates to support public relations and community outreach efforts specifically targeting hard-to-reach populations. “Hammond & Associates has a proven track record in designing and implementing communications projects that reach minority audiences, low-income residents and other hard-to-reach populations we need to target in this consumer education program,” says Laura Monica, Principal of High Point-Franklin. “Hammond & Associates will be responsible for developing strong relationships with community-based organizations throughout the state so that the campaign can directly engage and leverage established communications channels these organizations use with their members.” High Point-Franklin, Fitzgerald + CO and the Center for Research and Public Policy are the other team members working on the consumer education campaign. One of the key elements of the community outreach component is a series of train the trainer sessions that Hammond & Associates will assist in conducting across the state. The firm will also help staff and coordinate the campaign’s visibility at large public events such as fairs and festivals, as well as assist High Point-Franklin’s media relations department in leveraging media coverage for the campaign that directly reaches hard-to-reach target audiences. The consumer education program is a major component of the Amended Substitute SB 3 signed into law last year by Governor Taft. The legislation directs the state’s investor-owned electric companies and the Public Utilities Commission of Ohio, in consultation with the Ohio Consumers’ Counsel, to produce a statewide and local consumer education program to help residents and small businesses understand the changes that will be coming to the electric retail marketplace under competition, which begins on January 1, 2001. - END - |
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BEFORE THE PUBLIC UTILITIES COMMISSION OF OHIO
ENTRY The Commission finds: (1) Ohio Power Company, Columbus Southern Power Company, the Cincinnati Gas & Electric Company, the Dayton Power and Light Company, Monongahela Power Company, Ohio Edison Company, Toledo Edison Company, and Cleveland Electric Illuminating Company (hereinafter referred to as companies) are electric light companies as defined in Section 4905.03(A)(4), Revised Code, and public utilities as defined in Section 4905.02, Revised Code. As such, these companies are subject to the jurisdiction of the Public Utilities Commission in accordance with Sections 4905.04 and 4905.05, Revised Code. (2) Last year the Ohio General Assembly passed, and the governor signed, legislation that will require the restructuring of the electric industry and provides for retail electric competition with regard to the generation component of electric service (Amended Sub. Senate Bill No. 3 of the 123rd General Assembly). Section 4928.42, Revised Code, requires the companies to spend, in the aggregate, $33 million during the transition period to educate Ohio’s consumers about their new choices for electric service. Section 4928.42, Revised Code, also directs the Commission to prescribe and adopt by order a general plan for consumer education. (3) On November 30, 1999, in this docket, the Commission adopted the general plan for consumer education. This plan includes obtaining the services of advertising, public relations, and/or market research consulting firms to aid in the execution of a statewide mass media campaign to educate Ohioans. The process for obtaining the services of these firms was for the Commission to issue a request for 99-1141-EL-ORD -2- proposals (RFP), an advisory group to review the bids, and the Commission to award the contract. (4) Pursuant to the Commission’s entry of December 21, 1999, the Commission’s staff prepared and issued RFP ED99-1 to solicit proposals from consultants. On February 29, 2000, the advisory group filed in this docket its evaluation of the top ten consulting firms based on presentations from the consulting firms and filed a report setting forth its recommendations for the selection of the advertising, public relations, and market research consulting firms for the general plan for consumer education. (5) On March 2, 2000, by entry in this docket, the Commission concurred with the advisory group’s recommendation and approved the selection of The Center for Research and Public Policy, Fitzgerald+Co., and High Point-Franklin. Pursuant to our December 21, 1999 Entry, the Commission directed that the cost of any contract with consulting firms would be borne by the companies and coordinated by the Ohio Electric Utility Institute (OEUI). The companies were directed to make appropriate arrangements with the firms for such payment and make such payments pursuant to the arrangements solely upon the instruction of the staff. Final selection of the three firms were subject to appropriate final contract negotiations between the firms and the OEUI, as overseen by staff, and subject to Commission approval. (6) The contracts entered into by OEUI with High Point-Franklin and Fitzgerald+Co. were submitted to staff for its review. Staff has reviewed the contracts, found them to be acceptable, and recommends approval by the Commission. The Commission has reviewed the proposed final contracts to be entered into by OEUI with High Point-Franklin and Fitzgerald+Co. and finds the contracts to be reasonable. It is, therefore, ORDERED, That contracts entered into by Ohio Electric Utility Institute with High Point-Franklin and Fitzgerald+Co. are approved by the Commission. It is, further, 99-1141-EL-ORD -3- ORDERED, That a copy of this entry be served upon the companies, High Point-Franklin and Fitzgerald+Co. THE PUBLIC UTILITIES COMMISSION OF OHIO _____________________________
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FOR IMMEDIATE RELEASE PUCO Hires Budget Consultant for Electric Consumer Education Campaign COLUMBUS, OH -- Recognizing its fiscal responsibility in the oversight of the $33 million consumer education campaign for Ohio's electric restructuring, the Public Utilities Commission of Ohio (PUCO) today entered into a contract with J. Malsh & Company of Cincinnati to provide fiscal consulting for billings for the next year of Ohio's consumer education campaign. The contract is for one year, beginning May 1, 2000 and ending April 30, 2001. J. Malsh & Company will be responsible for reviewing bills submitted by communications consulting firms for accuracy, duplication of effort and overall integrity of purpose. The firm brings to the PUCO an extensive background in both the advertising and public relations industries and is familiar with the billing standards and practices for those industries. J. Malsh & Company will also be assisting the PUCO in seeking and selecting a statewide call center for all classes of consumers seeking information about electric restructuring in Ohio. J. Malsh & Company, founded in Cincinnati, Ohio, in 1984, has provided a full range of marketing, advertising and public relations consulting services for a wide variety of Ohio-based companies, a sampling of which includes: Borden; Gradison/McDonalds Investments; LEXIS/NEXIS; Prescott Ball & Turben; Concrete Technology, Inc.; Clark, Schaefer, Hackett & Co.; and Roto-Rooter. 30- |
FOR IMMEDIATE RELEASE PUCO Selects Three Firms for Ohio's Electric Restructuring Consumer Education Campaign and Orders Establishment of a Consumer Call Center COLUMBUS, OH -- The Public Utilities Commission of Ohio (PUCO) today issued approvals for three companies to perform the statewide consumer education campaign involving the restructuring of Ohio's $11 billion electric industry. In addition, the PUCO orders the establishment of a consumer call center to address consumer inquiries about electric restructuring in the state. As part of the restructuring, consumers will be able to select their supplier of electricity beginning January 1, 2001. The consumer education campaign will have three core components: 1) advertising; 2) public relations; and 3) market research. The PUCO, in consultation with the Ohio Consumers' Counsel (OCC), will oversee this consumer education campaign. OEUI, the trade association for the state's investor-owned electric utilities, will administer the day-to-day implementation of the statewide consumer education campaign and coordinate the statewide activities with the local educational efforts of the individual electric companies. "Effective consumer education is a vital component in making electric restructuring successful in Ohio," said PUCO Chairman Alan Schriber. "These three companies will bring utility regulation and consumer education experience and expertise to Ohio that will help all consumers make educated, informed choices about their electric service in the future." A six-member electric restructuring consumer education group reviewed 44 proposals from public relations, advertising and market research firms. In addition, the committee viewed formal presentations from 15 of the companies before recommending three companies to the PUCO for consideration. |
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| OHIO'S ELECTRIC RESTRUCTURING CONSUMER EDUCATION
CAMPAIGN
Using public relations, advertising and market research, the campaign will be designed to meet the following general objectives:
The companies approved today by the PUCO are:
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On July 6, 1999, Governor Taft signed Am. Sub. S.B. 3 that ushered into the state a sweeping restructuring of Ohio's electric industry. Under the legislation consumers will be able to select their supplier of electricity starting January 1, 2001. The Ohio Electric Restructuring Act of 1999 directs the state's investor-owned electric companies to spend up to $16 million for statewide and local consumer education programs prior to and during the first year of electric competition, which begins January 1, 2001. The law further provides an additional $17 million for the remainder of the transition period. In December, the PUCO issued an RFP asking firms interested in the contracts to develop and recommend a creative and cost-effective advertising, public relations and/or market research plan that supports and achieves the established general objectives for the consumer education campaign. Their plans needed to identify specific audiences, messages, strategies, tactics and evaluation measures to be used to ensure a successful campaign. Members of the six member consumer education advisory group include: Bob Snyder, Ohio Electric Utility Institute; Maureen Miller, Ohio Consumers' Counsel; Lee Veroski, PUCO; John Sheehan, Pacific Gas and Electric; Kathy Keller, American Association of Retired Persons; and Janine Moon, Coalition for Choice in Electricity. |
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| The PUCO today also approved the establishment of an
outsourced call center designed to provide Ohio electric consumers with
personal assistance for information related to electric restructuring.
In today's order, the Commissioners wrote "…responsiveness to
consumers is critical to the success of the campaign and based on the
experiences of other states that have embarked on the same challenge,
the Commission concurs with the Staff's recommendation for an outsourced
call center." According to research conducted by the PUCO Staff, at
its peak, Pennsylvania's call center received 20,000 calls about
electric restructuring in a single month. The PUCO staff concluded it
would not be efficient or economically feasible to hire enough employees
to be able to respond in a timely manner to an unpredictable peak.
Outsourcing the call center will avoid both the potential of not having
enough employees at any given time to handle the peak and of having too
many employees at times when call demand is not as high. Costs
associated with an outsourced call center are based upon charges
associated with actual call usage.
- 30 - Additional contacts:
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| Lee G. Ruh Communications Management Chief The Public Utilities Commission of Ohio 180 East Broad Street, 11th Floor Columbus, Ohio 43215 Tele: (614) 644-6795) Fax: (614) 752-8802 Email: lee.ruh@puc.state.oh.us Website: www.puc.state.oh.us |
Dawn Tarkington-Redmond Website: www.state.oh.us/cons |
Robert H. Snyder Website: www.oeui.org |
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PUCO SENATE
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