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Show of force gathers for lawsuit against CEI
(by Joseph Koziol Jr. - February 17, 2010)
Show of force gathers for lawsuit against CEI
By JOSEPH KOZIOL JR.
More than 400 people from across Northern Ohio turned out Saturday in Bainbridge Township for what may be described as their version of a "Electrici-Tea Party."
They crammed into a dining room at Chagrin Valley Athletic Club to hear state Sen. Timothy Grendell, R-Chester, explain what he plans to do in their fight to restore a previously provided all-electric-home discount.
Mr. Grendell said he will file a class-action lawsuit at his expense on their behalf to "get the all-electric rate back where it needs to be."
Mr. Grendell said the Cleveland Electric Illuminating Co. filed an 11th-hour rate request Friday with the Public Utilities Commission of Ohio, which he termed an "opening offer" to settle the lawsuit he had yet to file.
"It's not by accident this all happened yesterday," Mr. Grendell said. "They're trying to head us off at the pass, but we're going to keep coming."
He said he knew very little of the filing other than it sought to cap the increase at 20 percent for those who lost the all-electric discount. The filing, he said, also included an eight-year phase-in for new rates for those customers.
Mr. Grendell said he had three options. He said he could file his lawsuit this week as planned. Or he could wait until Friday to file the lawsuit and see what the latest CEI filing offers. He said he did not want to file the lawsuit if it means residents would lose some savings the company now is offering. The other option, he said, is to forego the lawsuit and negotiate through the PUCO.
The lawsuit, Mr. Grendell said, would revolve around the idea that CEI made promises or representations that people would receive the all-electric discount. He said that promise caused people to sometimes build their homes as all-electric, foregoing the use of gas or oil to heat their homes. He said one homeowner received a letter saying the all-electric rate would be given until the home was sold.
"As a lawyer, it was a contract," he said.
The lawsuit would make an attempt to stop the company from charging the higher rate until the lawsuit would be settled.
At Mr. Grendell's side was state Sen. Tom Patton, R-Strongsville, who had proposed legislation to protect the all-electric discount, he said.
But, the provision never made it into the legislation and the PUCO approved a rate plan that eliminated the discount.
Looking at the crowd, Mr. Patton said, "This is what America is all about."
Mr. Patton said he has spoken with numerous people who have lost the discount and the lowest increase he saw was 62 percent. He then took aim at PUCO and Ohio Consumer Council, which he said betrayed the people. He urged the crowd to call Ohio Consumer Council and to ask, "Why did you betray me?"
Ohio Consumer Council is a governmental agency that is intended to represent the public before the PUCO, he said. But, it did nothing when CEI came to abolish the all-electric rate.
Mr. Grendell said the chairman of PUCO even denied having taken the action, saying it was the state legislature that abolished the discount.
Mr. Grendell said he would be calling for the resignation of the agency's counsel, Janine L. Migden-Ostrander.
Mr. Grendell said CEI did something no other electric company in Ohio did, it separated its generation and distribution companies. He said buying electricity from themselves allowed them to "play with the rates."
"It's a little loophole no other electric company in Ohio did," he said.
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