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Expo Calms Consumers about Imminent Price Hikes


Photo By Roy Lewis
The Office of the People’s Counsel presented a free spring energy expo at the Sherwood Recreation Center on March 16, where citizens gathered information
about utility company services and legislation.  

By Teaira Buchanan
WI Contributing Writer

"I'm here today to get more information for my constituents," said Enid Jackson as Frank Grayton of Grayton Plumbing demonstrated the benefits of two of his company's more innovative products. Jackson and Grayton were two attendees of the March 16 Ninth Annual Spring Energy Expo sponsored by the Office of the People’s Counsel (OPC) and the United Planning Organization (UPO).

The tankless water heater, a boiler no bigger than the average pc unit, is one of the latest advancements in energy technology to hit U.S. markets.

The tankless water heater has been on the market for more than 30 years. Consumers are likely to pay a third of the average water bill, though installation costs can be three times more than the traditional tanks still popular with most consumers.

"I leave my ceiling fans on along with my AC units during the summer at night," Jackson said at another info session that allowed participants to discuss ways to conserve energy costs. Representing the D.C. Advisory Neighborhood Commission (ANC) for 5A09, Jackson came to represent her constituents who live in fixed-income neighborhoods where rising energy costs will hit hardest.

"Save yourself," suggested OPC President Elizabeth A. Noel, who was asked what residents can do to deal with the imminent increase in gas and electric costs that should go into effect June 1.

The OPC handles consumer complaints, offers legal representation, and sponsors consumer outreach and education events. Recently, it has attempted to curb the ensuing public outcry over announcements that deregulation in energy industries will mean a 12 percent increase in utility costs for D.C. residents.

Market deregulation in an industry often thought of as the nation’s last sanctioned monopoly has been favored by businesses and economists who assumed deregulation would encourage market competition. While this has been the trend in telecommunications, energy suppliers believe that deregulation has meant nationwide power outages and California's Enron scandal which raised questions about economic transparency. Gas and electric rates are scheduled to rise as high as 72 percent in Maryland.

"The city knew about these increases and implemented their own municipal aggregation plan for the District's commercial centers ahead of time," explained Herbert Harris Jr., chairman of the Consumer Utility Board, a nonpartisan group that lobbies for resident-friendly utility-related legislation before the Mayor and City Council.

Municipal aggregation is a term that describes a plan that allows for one group to formally negotiate with energy companies. The plan would involve granting power to consumers to form buyer groups within their local boundaries in order to secure energy services for one particular area.

Municipal aggregation requires customers to accept offers made by energy suppliers before being switched to that supplier. Pilot legislation to enact municipal aggregation programs have been implemented in Virginia since 2004 with energy suppliers Dominion Virginia Power. Lobbyists like Harris would like to see city residents hold the same amount of bargaining power as the city's commercial centers.

City authorities are under pressure to respond to mounting public outcry and demands for re-regulation by consumers. According to the D.C. Public Service Commission 2003 Annual Report, only 14 cases out of 2,000 complaints were brought to trial. The OPC handled over 7,000 inquiries in 2003. According to the OPC, most complaints were directed towards PEPCO's service costs. Depending on city legislators, the sort of traffic the OPC and similar consumer groups encounter should be daunting.

PEPCO representatives were also in attendance at the Expo. Representatives encouraged residents and consumers to use customer service numbers and the internet to stay informed. A D.C. Water and Sewer Authority spokesperson demonstrated the company's new online service which allows customers to check their rates and monthly bill on a day-to-day basis. "I'm concerned about it . . . but they're going to do what they want go to do. . . My bills are still going to be too high," said Cheryl Thomlin of Ward 6 in D.C. Many residents will face an average increase of $468 a year.