The Combined Power of Ratepayers and CUB
Posted on May 1, 2013 by Bob Jenks
Tags, Consumers and Utility Customers, Utility Regulation
Last month, we were contacted by a customer of NW Natural. Every year for the past five years, she has called the utility to have her gas shut off during the warmer months, from March to October. For her this not only saves energy by not requiring a pilot light to remain lit during a long stretch of not needing heating, but it also saved her money, by not requiring her to pay the monthly service charge rate (currently $8) that all NW Natural customers must pay.
This year, however, when the customer called to have her gas turned off, she was informed that if she was still living at her address when she called to have her gas reconnected in the fall, that she would be charged the monthly service fee for each month that her service had been turned off in addition to the reconnection fee. This was something she had never been told before, and so she questioned whether the utility had the right to do this. Fortunately for her, she turned to CUB with her query using the contact form on our website. Her e-mail definitely set off some red flags for us. We hadn’t heard about NW Natural beginning to do this, and we didn’t feel that it was right given the stipulated resolution of that issue in last year’s rate case (UG 221).
As part of the UG 221 rate case CUB had examined the charges that the Company was proposing both for connecting new customers, and also for reconnecting customers whose service was temporarily turned off for any reason. In its rate case NW Natural was proposing increases in those charges that CUB thought would be too onerous for customers to bear. During the rate case, CUB, NW Natural and the PUC Staff had reached agreement and settled reconnection charges. The settlement did not allow NW Natural to charge customers the proposed monthly charge for the months that customers voluntarily disconnected.
As a result of this and other customers’ complaints, CUB met with NW Natural and Public Utility Commission Staff on April 24, 2013. During that meeting NW Natural explained that it believed that it is good policy to charge customers a fixed monthly charge even in months where they don’t take service because those customers are still attached to the distribution system and that it had included the monthly customer charges for reconnect requests in the compliance filing for that reason. CUB pointed out that we believe implementation of monthly customer charges, in addition to the reconnection fee, violates the stipulated settlement agreement entered into in the rate case related to reconnect charges and that it was, therefore, inappropriate for NW Natural to include those monthly customer fees in its tariff compliance filing. CUB made clear that if the company did not voluntarily withdraw its tariff filing and remove the monthly customer charge – being charged in addition to the reconnection fee – that CUB would file a complaint asking the PUC to order them to withdraw the tariff and stop the charge.
Thankfully NW Natural listened and has agreed to withdraw that part of the compliance filing which related to the additional monthly customer charges being added to the reconnect fees. NW Natural has thus agreed to stop the practice of charging customers for months that they do not take service.
This story and its positive resolution show how important it is for Oregon ratepayers to have CUB, and in turn how important it is for CUB to have attentive Oregon ratepayers to bring these issues to its attention. Together we can move mountains!! CUB gives Oregon ratepayers a seat at the table, a voice in the regulation of their utilities. Without a ratepayer contacting us immediately, we may not have known about this issue until much later. Her simple act of contacting CUB has potentially saved her, and other NW Natural customers hundreds, if not thousands, of dollars.
Another very important way that ratepayers can help CUB is by becoming a CUB member. Members of CUB become a part of the collective voice, standing behind CUB when we stand up to the utilities for you. For every $1 members have contributed to CUB, we have saved each Oregon ratepayer $1,542! For as little as $5, you can become a CUB member today!
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03/31/17 | 0 Comments | The Combined Power of Ratepayers and CUB