COSE Electric Program Overview
COSE ELECTRIC PROGRAM OVERVIEW (August, 2007)
Electric Deregulation (1999 - 2000) - COSE became actively involved in electric restructuring initiatives in 1999. We took an active role in advocating for fair rates for our members from the start. We had a member task team dedicated to creating policy for COSE and testifying for fair rates and consumer rights in front of the PUCO. Senate Bill 3 was passed in 1999 officially deregulating the State of Ohio.
Market Development Period (2001 - 2005) - At the start of the Market Development Period, COSE became a registered and licensed aggregator with the PUCO and distributed 50 MWs of MSG to its members. MSG ( "Market Support Generation") was intended to kick start deregulation by establishing below market prices in order to get customers comfortable with the concept of deregulation (buying electric from new, non-utility, companies entering the market). During that period COSE partnered with Strategic Energy to act as the alternative supplier to members. We served approximately 500 members and 750 accounts and provided more than $7 Million dollars in savings to members. As the end of the Market Development Period approached, the competitive market had not developed in the way that regulators had envisioned. As a result, the Ohio utilities filed Rate Stabilization Plans to freeze rates for a three year period in order to give the market more time to mature.
Rate Stabilization Plan (2006 - 2008) - COSE re-developed its electric savings program in order to provide its members with $6 Million dollars worth of savings throughout the three year Rate Stabilization Plan. COSE developed this program with FirstEnergy Solutions in order to distribute this savings to our members by providing members with a 15% discount off the generation portion of their electric bill. To date, we have more than 1500 members enrolled in this program and we intend to enroll another estimated 500 members to save during 2008. The electric market in Ohio has still not developed which presents a major problem for customers if we transition to a fully open market at the beginning of 2009. As a result, COSE recognized the need for us to provide resources for energy education information in order to determine how to best advocate on behalf of our membership.
Membership in IEU - COSE joined IEU in August, 2006 in order to stay on top of all local, state and federal energy filings without dedicating COSE staff time for this effort, which would be a virtually impossible task. IEU has a team of 13 people that work in their Energy, Communications and Utilities Law Practice Group that are focused on these energy related initiatives and provide weekly updates to all members. This participation has kept COSE well informed and allowed us to strategically plan advocacy initiatives and keep our Energy Program on the cutting edge. In December 2006, COSE opted in to an Electric Restructuring advocacy initiative. This initiative will help to shape the FirstEnergy electric territory structure at the end of the Rate Stabilization Plan (December 31, 2008). It is important that COSE participate in these discussions in order to give small businesses a voice as the Rate Stabilization Period ends and the new market plan is developed.
Coalition for Affordable Power - COSE also opted into the Coalition for Affordable Power in order to be informed on all of the issues happening in the electric arena. The Coalition brings more political and media expertise to the table than IEU.
COSE Advocacy Work - In June, 2007, COSE sent out an Electric Survey via email to all of its members (with email addresses) and received 200 responses. In July, 2007, COSE hired Brakey Consulting to perform an analysis in an effort to better understand to the actual impact of rate changes to small businesses. On August 10, 2007, COSE held an Electric Advocacy Summit where we reviewed the results of the Electric Survey, Brakey Report and discussed our draft Electric Advocacy Principles. The updated version of the COSE Electric Advocacy Principles are detailed below.
COSE Electric Advocacy Principles
- Provide small businesses with electric prices that will be seen as a soft landing at the end of 2008. Create an environment where small businesses will not see an unmanageable rate increase beginning in 2009. If prices must increase, rate increases could be ramped up over a period of 3 - 5 years in order to provide small businesses with the ability to plan and budget for increases.
- Enhance and strengthen the PUCO's authority.
- Provide small businesses with education on changes in electric rates, estimated budget impact of rate changes and regulatory changes.
- Provide education to legislators and regulators on the impact of rate changes to Ohio businesses for rate structure and budgeting purposes.
- Promote energy efficiency and alternative energy assistance via education, resources and funding in order to make small businesses more conscious energy consumers.
- Small businesses make up 85% of the total business population in the State of Ohio.
- As small businesses grow, they will consume more and we want them to be educated energy consumers in order for them to remain sustainable and stay in Ohio.
