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PJM Wants You to Practice Energy Efficiency Today

1/7/2014

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Our friends at RTO Insider bring us the news that PJM is having issues managing peak demand caused by today's frigid temperatures.  (If you're a business and you hit RTO Insider's paywall, maybe it's time to get a subscription?)

Today's peak is supposed to be 142,000 MW this evening, when folks come home from work and start turning things on.  PJM hopes they will have sufficient resources, however, I've been bombarded with emails this morning with stories featuring PJM's plea for folks to conserve. 

RTO Insider tells us:
Officials said they could be forced to issue a second voltage reduction or brief rolling blackouts if conservation efforts and imports fail to make up any shortfalls this evening.  “We do not expect to take that [load shed] action,” Executive Vice President for Operations Mike Kormos said during a media call today.

PJM and state regulators urged consumers to reduce energy use during the emergency. “Every little bit helps,” Kormos said. “There’s 60 million people in our footprint. If everyone does their part, that could easily add up to one nuclear plant, which is 1,000 MWs.”

“We’re very close [to generation limits],” Kormos added. “The last couple hundred megawatts could allow us to not have to take any forced interruptions.”
If you only take a temporary action (such as dialing your electric heat back 2 degrees) to avoid your lights going out today, that's reactive.  If, instead, you take a small action today that you continue tomorrow and the next day, and the day after, then you're practicing energy efficiency.  As Kormos points out, if everyone does their part, that could add up to avoiding the cost of building one new 1,000 MW power plant.  It could also avoid the need to tear up valuable farmland with miles and miles of wind farms and transmission lines.

Maybe West Virginia's regulators should also encourage energy efficiency, instead of encouraging us to use more power to support the continued use of antique coal-fired generators that provide profits to out-of-state energy corporations.

So, if "everyone" changes just one incandescent bulb to a comparable LED today, can we all stay warm and happy?  Or will the stockpilers have us all sitting in the dark tonight because they don't like change?
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Heroes and Zeroes in Kansas

1/7/2014

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I'm not sure what's gotten into the tea across the pond, but The Guardian has named Kansas Republican Governor Sam Brownback a "Climate Change Hero."
Sam Brownback, Republican Kanas Governor, and lawmakers in a dozen other US states who fought off cynical attacks to repeal state Renewable Portfolio Standards, which have catalysed thousands of wind and solar projects across the country and generated hundreds of thousands of jobs.
But, maybe it's some other Sam Brownback, the one who's the Governor of "Kanas?"  The Sam Brownback who's the Governor of Kansas is no hero, for the climate or the people of Kansas.  Sam Brownback is the "hero" of the corporations who fund his political campaigns, and just because it now happens to be wind energy corporations does not a "hero" make.
hero |ˈhi(ə)rō|
noun (pl. heroes)
1 a person, typically a man, who is admired or idealized for courage, outstanding achievements, or noble qualities: a war hero.
Four years ago, Sam the "Climate Change Hero" said:
The recent disclosure of the manipulation of scientific evidence by climate researchers is exactly the kind of important information that needs to be brought to light. The emails and documents recently disclosed paint an alarming picture of the state of climate research. In the emails that have been disclosed we’ve seen evidence of manipulation, efforts to avoid freedom of act information requests, abuse of the peer review process and a research process that that is driven more by a political agenda than a quest for truth. [Brownback, DeMint, Ensign, Isakson, Vitter, and Wicker, 12/8/09]
Right, it's more about a political agenda than a search for truth.  So, what's the truth?  The truth is that it looks like the hugely profitable land based wind industry has convinced Sam that covering Kansas with wind turbines and transmission lines and selling the electricity produced to "states farther east" would cut his state in on the fortune to be made with "green" branding and "Saudi Arabia of Wind" claims.

For that, Sam has tossed his former campaign financiers in the oil & gas industry under the bus.  Because he's a "hero."  Right.  I'll believe Sam's climate change epiphany after examining his campaign finance reports for 2014.

"Big wind" continues to lie to politicians like Sam, encouraging him to lay waste to his own state so that energy corporations may profit producing electricity there and selling it to other states.  Isn't that what happened in West Virginia more than 100 years ago?  Look at how fine that worked out for the people of West Virginia.

The "truth" will reveal itself in the voting booth later this year.

Now let's move on to the zeroes...

The benighted Kansas Corporation Commission has intervened in the Grain Belt Express "Clean" Line application for negotiated rate authority at the Federal Energy Regulatory Commission.


Remember, the KCC failed to hire any experts to vet GBE's application for a siting permit in Kansas, instead relying on the testimony of GBE, verified by a couple of in-house electrical engineers opining way outside their areas of expertise.

However, the KCC found funds to hire deep-pocket law firm Andrews Kurth to represent its interests in GBE's application at FERC.
 

And hilarity ensued...


Due to an exceptional amount of pressing business, the KCC inadvertently failed to notice the subject proceeding until after the date for timely intervention had passed.

...the KCC’s failure to file a timely intervention was based upon factors outside of its control.
"Pressing business?"  What state public service commission isn't constantly embroiled in "pressing business?"  An "inadvertent failure to notice the subject proceeding" isn't really "a factor outside [KCC's] control."  But, whatever... it gets funnier....
[KCC] is the regulatory agency that has jurisdiction over the wholesale and retail rates that will be impacted by the proposed formula rate and incentive rate adders filed for approval in this docket.
Layperson Internet Energy Blog Education Moment for the KCC and Andrews Kurth:

There is no formula rate or incentives applied for in this docket!  It's an application for negotiated rate authority filed by a merchant transmission project.  That means that the developer of the project is responsible for all costs of building and operating its project and will recover them directly from customers through rates it is asking FERC for permission to negotiate, NOT FROM RATEPAYERS, in Kansas or elsewhere.  And GBE is not eligible to apply for incentives because it is not part of any coordinated transmission expansion plan, nor planning to be.

What a stupid waste of time and billable hours.

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FirstEnergy One of Forbes "Worst-Performing Stocks of 2013"

1/6/2014

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Wow!  Looks like FirstEnergy made all sorts of important lists in 2013!  Here's another stunning accomplishment for the company:
FirstEnergy and other utilities began to slide in May after Federal Reserve Chairman Ben Bernanke suggested that the central bank could begin go to pull back on its stimulus measures.

FirstEnergy, which serves 6 million customers across the Midwest and the Mid-Atlantic, also got hit after the company posted a nearly 50% drop in earnings for the third quarter due to cooler than usual summer temperatures cutting the need for air conditioning. Shares have recently been trading at their lowest levels in a decade.
The long, slow slide into irrelevance will be enjoyed by many!
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Residential Power Use Expected to Fall Again in 2014:  Utilities Continue Pollyanna Plans

1/4/2014

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Remember Jonathan Fahey?  He wrote an article in 2011 headlined Shocker: Power demand from US homes is falling that pioneered the idea that even though we're using more electric "gadgets" than ever, power use is dropping.  Well, now he's back with a similar article, Home electricity use in US falling to 2001 levels.
The trend Fahey first reported in 2011 continues, more than 2 years later.

Have utilities gotten any smarter since then?  Partially.  It took them forever to admit that dropping demand wasn't tied to the economy and that a rebound of electric use wasn't just over the horizon.  However, some utilities have simply moved on to other unsound business plans that continue to bank on the same old ideas that are no longer sustainable. 

Now utilities have moved on to transmission investments as their savior.  This is pretty puzzling, considering that long-distance transmission champion AEP concluded a year ago that enormous projects built across multiple states were an impossible dream.
Mr. Akins said he wants to avoid the bruising battles that delayed or doomed big projects in the past, like the 275-mile Potomac-Appalachian Transmission Highline project from West Virginia to Maryland. AEP and partner FirstEnergy Corp. dropped development plans for the complex project in 2011.

"Sometimes, we were just dreaming" that the companies could get enormous power lines built across multiple states, Mr. Akins said. He said AEP now is focusing on shorter projects blessed by federal regulators that eliminate grid bottlenecks. "It's where you want to put your money," he said.
The transmission investment gravy train has also left the station.  The sheer number of new transmission projects proposed combined with today's ease of online information sharing and social media tools has led to an explosion of knowledgeable, interconnected transmission opposition groups who are combining resources across the country to delay or stop unneeded projects altogether.

Instead of embracing innovation and new technology to make the existing grid smarter, some utilities are intent on merely building more of the same old dumb grid, or actively attempting to stifle innovation by forcing us all into an historic "consumer" position where we must funnel money to incumbent utilities in order to survive.  Ultimately, this plan will also fail, because technology marches relentlessly on. 

How we produce and use electricity is also changing.  Not only is producing our own electricity locally better for our economy, it's also much more reliable.  Hurricane Sandy was one of the biggest wake-up calls we've had recently, and the inevitable Monday morning quarterbacking of that disaster reveals that increasing long distance, aerial transmission from remote generation is simply dangerous.
  Making our grid more reliable isn't about building more transmission.  It's about change:
This includes traditional tactics, such as upgrading power poles and trimming trees near power lines. But it also encompasses newer approaches, such as microgrids and energy storage, which allow operators to quickly reconfigure the system when portions of the grid go down. Implicit to such plans is the need to ensure uninterrupted power to critical sites such as oil and gas refineries, water-treatment plants, and telecommunication networks, as well as gasoline stations, hospitals, and pharmacies.

Some of the nation’s leaders seem receptive to such approaches.
Elected officials, progressive regulators, energy producers, energy consumers, and innovative companies embracing new technology are also increasingly joining forces to move our energy economy forward and away from the dated centralized generation and transmission business plan of the past.  Companies who continue to deny the inevitable will ultimately be the ones left behind in irrelevance.
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Citi Says Sell FirstEnergy

1/3/2014

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Sell, sell, SELL!

Do you suppose the Citi analyst knows that FirstEnergy subsidiary Potomac Edison's crappy customer service was the #2 story in 2013 in its West Virginia service territory?
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I Know It's True Because I Saw It On the Internet

12/30/2013

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Potomac Edison finishes up 2013 as a big joke in The Herald-Mail:
Citizens also are concerned about their power bills, as the state Public Service Commission investigates allegations that Potomac Edison has not been reading residential meters in accordance with state law. The case follows customer complaints that the company cut back on its staff of professional readers and replaced them with a band of turbaned gypsies who gaze into the meters and estimate power usage.

Citizens tell the PSC they became suspicious when a bill came with a note predicting that the customer would “find an apple tree with seven apples and after eating one would grow three stag horns and find his flesh separated from his bones.”
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Is AEP Leading on Ideas or Dragging Around A Huge Anvil?

12/30/2013

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The Columbus Dispatch and a couple of investment analysts gushed all over AEP CEO Nick Akins for "leading on ideas" yesterday.

What's Nick's idea?  Getting out of the generation business and betting AEP's future on long-distance transmission.

Bad idea.
...a transformation of the company’s structure and a shifting notion of what AEP needs to do to remain relevant in a changing energy landscape.

In doing so, the company is de-emphasizing what was once a crown jewel, the fleet of Ohio power plants, and putting a greater focus on developing an interstate network of power lines.

“The less we have to spend on centralized generation, the better off we are,” he said in a recent interview.

When he says “centralized generation,” he means big power plants. AEP will be closing more plants than it is building.

The company is shifting resources so it can expand its transmission system, made up of the high-voltage power lines that carry electricity across state lines and between metro areas.
Maybe ol' Nick missed the EEI report earlier this year, Disruptive Challenges: Financial Implications and Strategic Responses to a Changing Retail Electric Business.  The report cautioned electric utilities to avoid "that Kodak moment" for investors by embracing new technology and addressing competitive threats.

While getting out of the competitive centralized generation business "addresses" the threat that AEP may lose some of it's golden eggs in an unpredictable market, AEP is not embracing new technology or making itself relevant in a changing energy landscape.  It's simply putting even more of its golden eggs into a business plan that it will help to make obsolete. 

As competitive centralized generation closes, it is being replaced by independently owned distributed generation.  Distributed generation doesn't need new transmission.  Nick won't be collecting any eggs if he kills all the chickens.

A better idea to embrace new technology and establish future relevance was adopted by competitive generation company NRG earlier this year.
...NRG is installing solar panels on rooftops of homes and businesses and in the future will offer natural gas-fired generators to customers to kick in when the sun goes down, Chief Executive Officer David Crane said in an interview.
AEP loves regulated businesses.  It's a guaranteed revenue stream for a bulky, staid, not-particularly-innovative company.
AEP, which was reluctant to split its Ohio operations, has responded by focusing on the delivery business.
Meanwhile, the Ohio power plants are a shrinking asset. Because of environmental rules and the age of some of the plants, the company has announced a series of shutdowns that will occur over the next few years.

Also, AEP is in the process of transferring two plants away from Ohio regulation. The plants, both of which are in West Virginia near the Ohio line, will be regulated in nearby states that allow a utility to sell electricity directly to consumers.

Once the moves are complete, AEP will have 8,668 megawatts of power-plant capacity in the new Ohio power-plant subsidiary, which will be down from 11,652 megawatts today.

Akins says the company is responding to an economic climate in which there is little reason to build power plants in Ohio. The state’s electricity demand has been flat, and the regulatory structure provides no clear way to pay for plant construction.
So, dumping competitive, centralized generation is a smart idea, but increasing investment in long distance transmission to support a shrinking pool of centralized generators is not sustainable.

While AEP is banking on federally regulated interstate transmission to nearly double earnings from transmission activities from 2013 to 2014, AEP seems to have forgotten what happened with its PATH project.  Big, interstate transmission projects with long lead times lead to big failure.  That's because "need" for these projects is constantly shifting, and if opposition can delay them long enough, they become obsolete.  Opposition is growing by leaps and bounds.  AEP ain't seen nothing yet!

It's a risky proposition and I don't think it's a particularly good idea.
Akins says he’s having fun and is eager to see the work of the past two years come to fruition.

“We are now at a point where we can start defining our success,” he said. “Before, we had a huge anvil we were dragging around, whether it be environmental expense or whether it be other things we were dealing with that were reactionary. We’re finally at a point where we can map out the strategy of this company going forward. It is exhilarating.”
We'll be "having fun" too, supporting companies embracing the new technology of distributed generation, and dragging the progress of AEP's transmission projects down like a huge anvil.  Although AEP can ignore growing public discontent, it ultimately cannot be denied.
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Potomac Edison/Mon Power Billing & Meter Reading Investigation Evidentiary Hearing

12/29/2013

20 Comments

 
The WV PSC's evidentiary hearing in the General Investigation of Potomac Edison and Mon Power Meter Reading, Billing and Customer Service Practices was held in Charleston December 17 -18.  If you didn't have an opportunity to watch the hearing live, never fear, we drove 12 hours, spent 2 nights in a hotel, talked to people we don't particularly like, fended off icy stares, and stayed awake for the entire thing in order to generate 13 pages of notes just so you can find out what happened.  The media took no notice of the event, even though FirstEnergy media personality Toad Meyers was there to act as their personal hearing interpreter.  Maybe they're waiting for him to share his notes...

If you've never watched one of these hearings, let's set the stage.  It's a quasi-judicial, court-like proceeding, sans robes and much of the formality.  This was an opportunity for the Commissioners to consider evidence and examine witnesses.  Witnesses sponsored by the parties to the case filed written testimony and rebuttals in advance.  At the hearing, the witnesses took the stand to have their testimony officially recognized and to give opposing parties a chance to cross examine them.  The Commissioners also took the opportunity to ask the witnesses questions.  The parties to this case are FirstEnergy's Potomac Edison and Mon Power utilities, the Staff of the PSC, and the Consumer Advocate Division of the PSC.  Between them, they produced 6 witnesses, 4 from the company, and one each from the Staff and the CAD.

FirstEnergy's first witness was John Hilderbrand, Director of Operations Support for Mon Power, who was grilled by the attorneys for CAD and Staff, and the Commissioners, for more than three hours.  From my notes:
  1. Exigent circumstances prevented the company from making bi-monthly reads as directed in its tariff.  The dreaded "exigent circumstances," or "EC" were defined as:  weather, access issues, unplanned absences and equipment failures.  Weather = ice, snow, rain, flooding that impedes access to meters. Access issues include a broad range of items such as new gates being erected, no keys being provided, meters on the interior of the home, animals, such as dogs.  Unplanned absences = sickness or illness, or 3 personal convenience days that can be used w/24 hour notice.
  2. Because the company has limited resources, they don't attempt to read in the month following a missed read, when an estimate is scheduled.
  3. Company now has 7 substitutes, or "rovers" to cover for unplanned absences.  This process began several months ago,  However, the company did not have substitute meter readers before that.  But, there may still be missed reads due to "EC" because there are only 7 rovers.
  4. The company was not adequately staffed to read meters for some period of time due to merger organization and that contributed to the problem.
  5. As a result of the merger, meter readers are devoted to meter reading only.  (Despite the fact that FirstEnergy was recently recruiting for meter readers that would also perform collection activities and disconnects and reconnects.)
  6. When meter readers transferred to other positions after the merger, FirstEnergy had to shift resources to read meters and catch up on missed reads.  FirstEnergy shifted resources 8/15/11 and again 4/2/2012.
  7. It takes 6 months to train a meter reader (but the company wants YOU to read your own meter with no training whatsoever!)
  8. Company has not researched how the storms affected other power companies, but AEP didn't have the same problems because their meter reading is automated and is a different process.
  9. The proposal to read meters every month for one year would increase the cost to WV ratepayers $5M.  But who said WV ratepayers would be paying for that?  Nobody.
  10. Renumbering is a "short term inconvenience to customers" but will make the process better in the long run.  Why not a short term inconvenience to the company?  It's good utility practice to see that reading is as efficient as possible.
  11. The company added renumbering to the existing staffing, merger transition and storm problems.  But it results in cost savings (for the company!)
  12. Readers hired since mid 2012 must use their own vehicles.  Decision was made as part of merger integration aligning practices across FE and the company always evaluates ways to deliver product cost effectively. 
  13. Meter readers using their own vehicle are paid IRS mileage rates and must carry certain insurance, although the FirstEnergy witness doesn't know how much.  "Most" personal vehicles used by meter readers are all-wheel drive, however that is not a requirement.  The supervisor inspects the vehicle monthly to ensure the vehicle can complete the route.  If a personal vehicle breaks down the company may facilitate getting it back on the road with a tow or a jump, but does not normally provide a back-up vehicle.  If a meter reader has continued vehicle issues, that affects the ability to get the job done.  Meter readers are not compensated if they don't get the job done.
  14. When asked about missed readings due to the Derecho, Hilderbrand's logic came up short.  Staff attorney John Auville walked him through a typical storm-altered read schedule:  The Derecho caused a missed read in the first half of July.  The August read was a scheduled estimate.  The meter should have been read in September, but was not.  Hilderbrand said the company was still not recovered from the Derecho and able to read meters in September.  Hilderbrand started talking about the dreaded EC again.
  15. On renumbering:  When you reorganize routes and shift between even and odd cycle reads, that results in some customers being estimated when due an actual read, or some customers receive back-to-back reads (is there anyone this happened to?  I'm still waiting for someone, anyone, to tell me they got back-to-back reads due to renumbering).  It was a poor decision to renumber the Eastern Panhandle in the winter.  Why didn’t FirstEnergy think of that beforehand?  The FirstEnergy staff had never renumbered before, so they didn’t understand it.
  16. FirstEnergy has selected 10,000 residential accounts for monthly reads between Nov. 2013 and Jan. 2014.  FirstEnergy has approximately 445,000 customers in WV.  At most, this provides one, maybe two additional reads for these customers.
  17. FirstEnergy has 16,920 "annual read" customers in WV.  An annual read customer is one whose meter is read only once per year.  Reasons for an account being designated "annual read" include:  Safety, access, customer request and seasonal.  The company is reviewing these accounts to make sure designation is correct, but has no plans to notify the customers of the review, the results, or notify them of their right to appeal the determination.  Maybe that would be a good idea.
  18. When a meter reading is considerably higher than expected based on prior reads, the reader's hand-held computer unit emits an audible tone that causes the reader to do an immediate re-check.  However, it's up to the reader and supervisor to set the parameters of error allowed.
  19. It would take up to a year to get staff in place to read every meter every month.
  20. If a reader has access issues, one of several form letters is sent to the customer to remedy the access issue.  If the customer fails to respond, the company may be more aggressive in turning off service.
  21. The company has a 3-day read window for each account during a scheduled read month.  If an unplanned absence occurs on the last day of the read window, it cannot be made up.  Note that the company can read your meter at any time within that 3-day window.
  22. Commissioner McKinney vigorously questioned this witness about meter readers driving their personal vehicles and identifying themselves and asked the company to look hard at providing some sort of "work around" in the case of a missed read.  Then he started in about renumbering, observing that the company could have chosen to read all meters during renumbering, but they didn’t choose to do that.  That’s a resource issue from Commissioner McKinney's perspective.  It was something the company made an intentional decision to do.
  23. Commissioner Albert wanted to know what was going on with the Maryland PSC billing investigation, but couldn't get a straight answer from the witness.
Second witness was Kaye Julian, Director of Customer Management.
  1. The system has calculated expected consumption and if it falls outside expectations, then it goes to billing personnel for review.  This is supposed to catch a large true up.  They could send a re-read order or a billing rep. would catch an obvious error.  But, if the reader has verified the reading (see #18 above), then they release it for billing.  Customer is not notified of the reason for such a high bill, but the company is considering doing that, along with giving the customer payment plan options.
  2. If a customer's history contains "bad data" (defined as inaccurate estimates) then it’s possible that the estimated reading is going to be inaccurate.  If there are more than 4 estimates, then "we do have issues."  The company has a levelizing routine for 4 estimates and are confident it’s correct.  But if there are more than 5 estimates in a row, it does not work.  Those customers go through an estimation routine that uses prior month usage to calculate current month estimate.  If the prior month was estimated, this would make the current estimate based on "bad data."
  3. The company's estimation routine did not perform as they intended it to.
  4. In April 2012, a computer system change (result of the company's merger) was made that changed the estimation routine.  Although Allegheny's estimation routine worked well, FirstEnergy "enhanced" it because it was not possible to retain the old and support the business environment we’re in.  In order to share resources it’s best to all be on the same platform – it’s about managing costs and best practice.
  5. Agrees that adding additional months to the levelizing routine may only add more "bad data" and that an average is only as good as the data used to create it.  If data is off, then estimate will be wrong.
  6. EPRI study of company estimation routine expected January 6.  EPRI has been meeting with FirstEnergy "team" and needs more time.  Weekly/daily meetings on review that began in July.  EPRI is trying to simulate estimation routine with good data and creating other scenarios with additional estimates.  EPRI will tell them how to improve. Too early to say if the company will do whatever EPRI recommends because the company doesn’t know how much it may cost.  Could reject EPRI's recommendation if it’s too expensive for the company.
  7. Regarding the 10,000 "special" customers who will receive monthly readings between Nov. & Jan. -- The system picked them based on the following criteria:  5 consecutive estimates in 2012 and more than 25% variance after an actual read.  Only accounts with 5 consecutive estimates because the company believes its levelizing routine for 4 or less estimates is accurate.  The purpose of actual reads is to replace "bad data" and high true-ups with actual reads because they could not be levelized.  The company will reassess these accounts at the end of January.  
  8. Doesn't think actual reads for a year would be necessary based on how the system works and based on read rates.  Not all customers were impacted like that. Not all accounts need special handling, just "anomalies" (10,000 accounts).
  9. Believes there's a difference between a high bill inquiry and a complaint.  Maybe the customer called simply because they didn't understand something about their high bill.
  10. FirstEnergy applied its own estimation routines used for monthly read accounts to Allegheny's bi-monthly read system, but doesn't believe that exacerbated the estimation problems.
  11. Chairman Albert asked what are "we" going to do with this thing?  Lots of customer issues, lack of confidence in the company’s processes.  To what extent is somebody going to suggest to us what needs to be done?  Julian responded that the company has discovered that their bills are confusing for customers.  Will enhance customer messaging on bill to let them know why there is a huge variance in the bill.  "Little idiosyncrasies"  came out.  Chairman Albert asked again about the Maryland PSC case and still got no answer.
FirstEnergy counsel helps out by asking witness on redirect if there is a similar billing problem in FirstEnergy's West Penn Power territory.  Julian says there is not because WPP didn't suffer the consequences of Hurricane Sandy.

Next witness was Gary Grant, FirstEnergy's Director of Customer Contact Centers:

  1. Companies have voluntarily implemented modified guidelines for payment plan procedures for high bills with no financial qualification.  Gives the customer a repayment period similar to the estimation period that caused the high bill.  Customer Service Reps. offer payment plans as an "opportunity" for customers, but only when they call and ask because each customer is "unique".  Hand-out refers to customers as "business partners."
  2. West Penn Power doesn't have high bill payment plans "at this scale" (not that they don't have the same high bill problems - see paragraph above).
  3. Disagrees that customers got rude treatment from customer service reps. Wait times at call center have decreased, and the company's robust quality assurance process ensures CSRs are not rude.  But did customers in fact express concern during the public hearings?  Yes, they said that.
  4. The company does not inform new customers about the company's bi-monthly reading practices, and if they did it would be an additional cost.
  5. Commissioner Palmer questioned this witness about hold times once initial contact is made.  These hold times are not counted in the company's ASA statistics.  The company tracks handle time for individual reps. as well as overall call center, and any hold time would count in the handle time metric.  They don't keep track of how long customers are on hold once answered.  The supervisor can see how long customer is on hold.  When asked if there will be any changes to the process, the witness said just payment plan and high bill refreshers for the CSRs.
  6. Chairman Albert asked what the harm was in informing the customer about bi-monthly reading when they apply for new service over the phone.  The witness said it would add seconds to the call.  Chairman Albert speculated that it would add about 3 seconds.
Next witness was Kevin Wise, Director of Rates and Regulatory Somethingorother:
  1. Witness claimed he had not seen the lawsuit filed by Potomac Edison customer John Kilroy in Jefferson County the day before.
  2. Said the company would never accept the $5 customer refund for a missed reading, even if exceptions were made for exigent circumstances.  Was asked how many times the company would be paying this fine.  Said there will always be meters that aren't read and would be estimated.
  3. Commissioner Palmer asked if the company had future renumbering projects planned.  Witness has no idea what the company's future plans may be.
Next witness, Suzanne Akers, Utility Analyst with the Consumer Advocate Division, was cross examined by FirstEnergy's counsel.
  1. Acknowledged that if the company were to read meters monthly for a year, it would take time to increase staff.  Could not answer if the cost of the extra readings would be recoverable in rates.  
  2. Was asked what she would do with those extra meter readers after the year.  Said perhaps they may still be needed.  Was asked if she would lay off those meter readers, because that might affect FirstEnergy's ability to hire workers.  (Hey, I didn't write this comedy, I'm just reporting here.)  Akers noted that many current meter readers are contract employees.
Final witness was Michael Fletcher, Deputy Director of Consumer Operations Section at the PSC:
  1. Part of his concern about changing to FirstEnergy's new estimation routine is that under Allegheny’s estimation process, the company did an analysis on the specific customer and had 5 estimating routines to fit different scenarios.  Allegheny used to look at what routine is appropriate and current system does not.
  2. Concerned that sequence of estimates are adjusted for weather, until there are too many estimates and then the routine changes to levelized midstream.
  3. FirstEnergy's counsel asked if the linear routine uses prior year historic data, and witness said it varied, either prior year or prior month, but neither estimate may be accurate.
  4. Witness said that the weather-adjusted estimates were put in place in a settlement in the 1990s and if the company wants to change them they should file a new tariff.
  5. The customer supplied meter reading should be used as supplied if within the company's 3-day read window.  (Note #21 under Hilderbrand.)  However, the company has been adjusting the customer-supplied reading to their scheduled read date within the window and then marking it as an estimate on the customer's bill.  The tariff supports Fletcher's interpretation.  Fletcher said that when the customer calls in a reading and the bill shows a different number coded as an estimate, that increases customer anger and complaints.
  6. FirstEnergy counsel asked Fletcher about several missed read situations and whether they would count as missed reads where the $5 refund applied.  Fletcher agreed that some would be exceptions.  Fletcher said the company needs to have enough back up meter readers to cover absences.  Sick or vacation excuses for not reading meters are not acceptable.  He understands the company can’t plan for every eventuality, but needs additional rovers to take up the slack for planned absences. If it’s the same problem that has brought us here because of poor planning, then the refund would apply.  The company says they have increased meter readers and fixed all the other problems, and if they have, it wouldn’t apply to anyone.
  7. The $5 customer charge includes the cost of reading, billing, maintenance, and parties may agree to include charges in there that are not direct customer costs. However, it's primarily related to those items in the Uniform System of Accounts that can be tied to the customer, even if the customer had zero usage.  The company’s cost to serve that customer, according to Wise’s testimony says the cost of meter reading is $1.19 (or $1.56 later in the testimony).  Meter reading has a $3.7M yearly cost.  There are other costs recovered in addition to meter reading.  Fletcher is not trying to compensate customer for company’s cost – he was picking easy number to reference ($5).
  8. FirstEnergy's counsel contends that the $5 refund is performance rate making (where there are penalties and rewards), but Fletcher's proposal has no reward.  Fletcher said the reward is not incurring the penalty. 
  9. Fletcher said if a customer got 5 consecutive estimates, it sends incorrect signals to the customer about energy use and is not fair to the customer.
  10. Chairman Albert questioned witness about exigent circumstances (EC) and whether or not EC can be verified how do we avoid more EC circumstances and whether discount should apply.  Aren’t we setting up a system with a penalty that would result in a bunch of contested cases?
If you found this summary interesting, or laughable, check back for links to the hearing transcripts, when they are available.

And now we wait for the Commission to issue an Order to fix this mess.  At some point, FirstEnergy has to right its wrongs and make amends to its customers.  Otherwise, this saga will simply continue in another venue.
20 Comments

A Very Supercilious FirstEnergy Christmas

12/24/2013

0 Comments

 
As a FirstEnergy customer, I'm thrilled to know that my Board of Directors won't be bombarded with cheap foreign junk or moldy fruitcakes this holiday season.  Oh no, only the best for the folks who approve the compensation packages of the management that continues to send me inaccurate bills every other month!

The State Journal tells us:
When FirstEnergy selects gifts for its Board members at Christmas, they have one very firm requirement: They must be handmade in America.

"Not only are we supporting American artists, but we are also giving a unique, not mass-produced, American made gift to each of our board members. I urge all American businesses to look towards supporting American artists," says Tony Alexander, President & CEO.


Ho, Ho, Flippin' Ho.  I hope this doesn't end up in my bill.  But, it probably will.
0 Comments

Find Out More About Potomac Edison and Mon Power Mass Action Billing Lawsuit

12/22/2013

1 Comment

 
If you're one of the thousands of Potomac Edison or Mon Power customers who have experienced problems with your billing over the past couple of years, fill out this quick and easy online form to consult with an attorney about your unique situation.

As we noted last week, a Jefferson County customer has filed a civil suit against Potomac Edison.  When WHAG asked viewers if they had also been over billed on its Facebook page, response was overwhelming!  More than 160 people posted comments, many claiming to have received bills in the hundreds or thousands of dollars.

Now Charles Town attorney Andrew Skinner says, "...more suits may follow against the electric company."

The FirstEnergy subsidiary's billing practices have been the subject of numerous consumer complaints and several public hearings this year. While Skinner says a class-action lawsuit is unlikely, customers may be able to file a mass-action lawsuit, in which there are many individual plaintiffs."

An article in the Martinsburg Journal explains the progression of the initial suit filed by Shepherdstown resident John Kilroy.  After many months of wrangling with Potomac Edison, and after going through the formal complaint process at the WV Public Service Commission (where the company signed a settlement agreement forgiving half of the amount in question), the company continued to bill Kilroy the full amount.  Every avenue short of a lawsuit was explored, but the company continued to insist that Kilroy owed more than $3000.
Before filing the lawsuit, Skinner sent a letter to Potomac Edison, asking the company to correct its billing inaccuracies as required by the Consumer Credit and Protection Act. Potomac Edison representatives failed to respond.
FirstEnergy's Potomac Edison and Mon Power subsidiaries continue to ignore customer complaints.  After all, the legislative interim investigation of utility billing practices has come to an end with nothing being done.  Perhaps it was nothing more than grandstanding by Senator Herb Snyder in the first place, but maybe we can try again to get something accomplished when the legislative session begins in January. 

After sitting through the evidentiary hearing last week, it looks like the company lacks a healthy and respectful fear of our Public Service Commission.  Why does the company treat regulation like it's something that can be "fixed?"  When I arrived at the PSC for day 2 of the evidentiary hearing last Wednesday, someone asked me if I happened to notice Sammy Gray on my way in.  Sammy Gray is FirstEnergy's West Virginia lobbyist.  What would a lobbyist be doing trying to influence an impartial, quasi-judicial regulatory board?  Why would he ever set foot in that building?  Is our PSC just another corporate apologist? 

I'm starting to think that consumers (or "business partners," as FirstEnergy training manuals call us) could be mistaken if they believe that West Virginia's legislative or regulatory processes are designed to serve them.

Because we can't get justice through our government
, it's time to take it to a higher level and quit wasting our time at a PSC that will not exercise its authority.

What's a consumer to do when the legislators and regulators fail him?  Take the matter up with a judge in your own county and seek justice through the court system.

Go ahead, fill out the form.  It's your only path to justice in West Virginia.
1 Comment
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    About the Author

    Keryn Newman blogs here at StopPATH WV about energy issues, transmission policy, misguided regulation, our greedy energy companies and their corporate spin.
    In 2008, AEP & Allegheny Energy's PATH joint venture used their transmission line routing etch-a-sketch to draw a 765kV line across the street from her house. Oooops! And the rest is history.

    About
    StopPATH Blog

    StopPATH Blog began as a forum for information and opinion about the PATH transmission project.  The PATH project was abandoned in 2012, however, this blog was not.

    StopPATH Blog continues to bring you energy policy news and opinion from a consumer's point of view.  If it's sometimes snarky and oftentimes irreverent, just remember that the truth isn't pretty.  People come here because they want the truth, instead of the usual dreadful lies this industry continues to tell itself.  If you keep reading, I'll keep writing.


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