A recent paper by researchers at the John Glenn College of Public Affairs, The Ohio State University says that Ohio electric bills for residential customers have increased since restructuring, but blames the reliance on negotiated electric security plans (and the preservation of revenues through such plans), versus the use of a Market Rate Offer (MRO), for the results.

The paper only looked at SSO prices for the generation component of bills

Aside from noting higher residential bills, on a total bill basis, the paper states, "our research stands in direct contrast to arguments that there is a benefit to a high SSO in so far as it encourages switching behavior. To the extent that we treat the SSO as distinct from CRES rates, this argument is far outweighed by the substantial number of customers who have not switched and the significant costs they face. Additionally, all residential customers are affected by the swelling of the regulated portions of customer bills."

In an accompanying policy paper, the authors recommended that Ohio, "[s]et a firm date in the very near term by which utilities must be moved to an MRO."

"Under the current system of ESPs, customers are paying for generation twice. They are paying for generation through their energy costs (i.e., through PJM), and they are paying for generation through non-bypassable riders and surcharges," the authors claimed

See below for the papers:

Full Analysis

Policy Paper

Tags:
Ohio   Deregulation  

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