Utilities Formula Bill Clears Hurdle

Article mentioning my great uncle Vernon Cook

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Utilities Formula Bill Clears Hurdle - Provincial Formula Bill Clears Hurdle COLUMBUS,...
Provincial Formula Bill Clears Hurdle COLUMBUS, Ohio (AP) - A compromise bill that would establish a new method for determining how much utilities may charge for service has cleared its first legislative hurdie, but major obstacles line the road ahead. The House Insurance, Utilities and Financial Institutions Committee will begin consideration next Tuesday of a biU loaded with, .controversy and unanswered questions on cost factors and impact on ratepayers. The bill was unanimously approved in subcommittee Wednesday but few, if any. legislators or lobbyists were satisfied with it. "I have some serious doubts about the consumer impact of this bill." said Rep. Dennis Eckart. D-18 Euclid. "However, I'm going to vote to get the bill out of subcommittee because I want to see it in full committee." Rep. William G. Batchelder, R-93 Medina, who helped hammer out the compromise, noted that some key sections "would be reworked in full committee." As written the bill would repeal the present Reconstruction Cost New (RCN) formula and replace it with an original cost rate base for the state to use as a starting point in considering utility applications for increases. Under the RCN method, gas, electric and telephone companies recalculate the cost of their investment in plants and other facilities at current market value. Backers of repeal say this results in up-to-date prices for out-of- date properties and opens the door to profits for utilities. The original cost formula would not such trending up, but would permit utility companies to calculate 50 cent of interest paid on loans for in progress as part of their operating expenses. RCN does allow any" interest flow-through, a inserted in the bill last week, as a concession to the utilities. Rep. Vernon Cook, D-39 Cuyahoga Falls, estimated the interest factor would add $120 million to $130 million utility's allowable operating expenses as figured in the rate base. "That's too much," said Cook who originally proposed and supported the interest plan. Cook said he was not certain how the pass-through of interest would add to customers bills. But former Public Utilities Commissioner Henry Eckhart, an arch-critic of the industry, placed it in the neighborhood of more than $300 million annually. The lack of reliable figures regarding impact of the new rate plan was responsible for the widespread dissatisfaction with the subcommittee version. "What does it mean at the bottom for the consumer." asked Warren executive-secretary of the Ohio "Nobody knows." African

Clipped from
  1. The Press-Gazette,
  2. 08 Jan 1976, Thu,
  3. Page 4

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  • Utilities Formula Bill Clears Hurdle — Article mentioning my great uncle Vernon Cook

    hopemoore – 15 Mar 2013