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Fun With FirstEnergy's Earnings Call - Donny Pulls His Lever and Tony Talks About Things Going Soft

11/5/2013

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Thanks for the earnings call fun today, FirstEnergy.  It gave Patience and I an excuse to dine on fancy sandwiches and cornichons, drink Raging Bitch, make certain hand gestures at the voices coming out of my laptop, and laugh at all the stupid things your NEOs said.  And a fun time was had by all... at least on this side of the internet connection!

"FirstEnergy's third quarter net income this year tumbled to about half of what it was a year ago," read the lead of The Plain Dealer's pre-call story.  I had to quickly whip up a side of schadenfreude to serve with lunch!

Tony the Trickster mentioned that, after recent closings, his "fleet" of generators is now about the same size as FirstEnergy's "fleet" was at the time it merged with and swallowed up the former Allegheny Energy.  This wouldn't be the first time I pondered if the merger's sole purpose was to carve up the Allegheny carcass, saving that which benefited FirstEnergy and tossing the rest on the rubbish heap.  When does the sale of troubled Allegheny distribution subs begin, now that FirstEnergy has accomplished its evil plan to raise cash by sucking the lifeblood out of Mon Power/Potomac Edison and leaving a dried up, debt-laden shell that no longer provides service to its customers?
For example, we have reduced the size and mix of the fleet by closing and selling competitive units. Last month, we closed the Hatfield and Mitchell Power plants and we expect to complete the sale of certain hydro assets later this year. In addition, we completed the Harrison and Pleasants transfer this quarter. Once the RMR units are deactivated, our competitive fleet will be a little more than 13,000 megawatts. This is about the same size as our fleet prior to the Allegheny merger, but it's a much stronger platform of units, more environmentally controlled and more efficient overall.
It's all about Tony's "plan" to pull his ass out of the fire. It never was about serving customers, or any of that other dreck two of the WV PSC Commissioners wanted to believe.
Let's turn to an update on the financial plan that we introduced in February. Through a series of actions this year, we have made significant progress towards completing the plan, strengthening our credit metrics and reducing our risk profile.

This financial plan, which is now virtually complete, successfully improves the balance sheet at our competitive and regulated businesses and enhance liquidity in a very short period of time.
Tony's next great plan is to plop his "spend" into regulated transmission investment accounts that earn risk-free, high returns.
Last week, our Board of Directors approved as a part of our energizing the future program, a new multiyear $2.8 billion incremental investment in a transmission reliability excellence plan. The plan includes additional transmission investments above current plans, which are expected to be about $500 million in 2014, growing to about $700 million in 2015 and about $800 million in both 2016 and 2017. This program will begin with investment primarily in ATSI, but will ultimately extend throughout our service area. We currently expect to fund these investments with a combination of debt and equity. These projects include rebuilding lines and equipment to improve reliability and reduce future maintenance costs, enhancing and expanding communication networks to harden the system and increasing system capacity to meet the service level and reliability requirements of our customers.
This announcement turned the analysts on the call into curious monkeys who wanted to know all about tricky Tony's tantalizing transmission targets, but that wiley old geezer strung them along, talking about rebuilding lower voltage lines that don't require regulatory approval and said he would talk more about it at an upcoming EEI conference.  Tony also said that the company is primarily looking to "spend" inside its footprint and not looking for projects that have long lead times with respect to either approval processes or likely construction processes.  Because they learned their lesson with PATH? Someone's been paying attention in class!  But he forgot to tell them about FirstEnergy's proposal for a project to solve PJM's Artificial Island issues, and any lingering ratepayer-funded PATH assets that may still be kicking around.  Do you think the curious analysts were only pretending to be that clueless?

In response to a question about coal costs, Donny started talking about pulling his lever.  I'll spare you the hand gestures that instigated.  And before the laughter had died down, Tony started talking about the possibility of things being soft down the road...

I love my job.
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Tick Tock, Start the Clock

11/5/2013

2 Comments

 
In the wake of the WV PSC public comment hearings on the general investigation of Potomac Edison/Mon Power billing, meter reading and customer service practices, the PSC ordered  "FirstEnergy to address the substance of the complaints voiced at the hearings."  The Commission gave FirstEnergy 15 days to accomplish this task after the hearing transcripts are filed.

Today, the last of the transcripts were filed.  So this means "the substance" of your comments will be addressed by November 20.

Well, good luck there, FE.  Not only is "the substance" a very non-descriptive term, but "address" is one of those weasely verbs that have multiple meanings.  And then, hey, let's take a look at those transcripts!  Some of it is completely unintelligible, or just plain wrong.  I hope FE took notes like I did...
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PATH Holds Open Meeting

11/1/2013

1 Comment

 
Interested parties ask for information and clarification.
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Why Potomac Edison's Usage Estimation Process Doesn't Work

10/30/2013

1 Comment

 
Ever made a pot of soup and added too much salt?  If you throw in a potato, that will absorb some of the salt, but then you've got too much potato.  So, you need to add more water.  But then it gets tasteless, so you add some more spices.  And then it gets too salty, so you add a potato... 

This is how FirstEnergy's West Virginia subsidiaries' usage estimation process has become FUBAR.  The only way to fix it now it to dump out that pot of soup and start fresh.

And the only way to start fresh is to read every customer's meter, every month, for at least 12 consecutive months and start with fresh data.

This fact was made perfectly clear to me during my personal "customer service" moment during the WV PSC public comment hearings in Shepherdstown last week.

After witnessing customer after customer being whisked off backstage "to be taken care of" by Potomac Edison personnel after they complained to the Commissioners about their service during the hearing, I started to wonder if the customers were being tied up, consumed by wolves, or simply given Potomac Edison beer cozies and pats on the head before being sent on their way.  Curiosity got the better of me when the murmur of an argument somewhere off to stage left escalated into shouting clearly heard throughout the auditorium, and resulted in several bored police officers running through the auditorium to break it up and make the customer move 25 feet away from the Potomac Edison employee he was harassing in the hallway.  I simply had to visit the lion's den for myself after the hearing ended!

So, I soon found myself in Potomac Edison's little backstage Happy Town, where Chrissy was eager to solve my problem.  She spent a while studying her computer before admitting that she really couldn't help me and went to fetch "analyst" Chris.  He spent a bunch of time staring at his computer too.  All this chin scratching to figure out why my usage was overestimated by 800 kwh on my last bill, and to assure me that upcoming planned estimates would not be based on "catch up" amounts from the prior year.  Chris finally concluded that Potomac Edison's estimation process was correct and wouldn't result in incorrectly estimated bills over the winter.  But he could not explain what had failed in my most recent bill that resulted in a rather severe over estimation.  If they couldn't figure out what went wrong last month, how could they know that it wouldn't reoccur?  The assurances I received were so useless, I started wishing for a Potomac Edison beer cozy to take home as a consolation prize, but it appeared to be locked away somewhere off site, along with Chris and Chrissy's senses of humor.

I did enjoy listening to the "private" conversation going on in the next cubicle where one happy customer referred to a customer service representative as "that brat."  Chrissy failed to be amused.  I got the idea that she thinks her fellow customer service representatives are never rude or unhelpful.  You just keep telling yourself that, Chrissy.  I wonder if there's a Rude Customer Service Representatives Anonymous chapter in Fairmont?

"Hi, my name is Brat and I'm rude."
"Hi, Brat!" 
"This week, I told a customer that we only had to read her meter once a year." 
"That's okay, Brat!" 
"And then I made her go out and read her own meter, although she told me she only had one leg and the porch was covered in ice." 
"One Day At A Time, Brat!" 
"But then I told her she had read the meter wrong and I was going to have to charge her a penalty for that."
"You can do better tomorrow, Brat!" 
"And then she asked to speak to my supervisor, so I made her wait while I answered the Giraffe Riddle on Facebook, and then I hung up on her." 
"Ohhh, Brat, we love you anyhow!"

The timer on my patience finally got close to zero, so I thanked my Happy Town guides for their time and got up to leave.  That was apparently the cue for Creepy Supervisor guy to get in my face and ask me if I had been helped.  Oh, c'mon, dude, you were standing right there listening to this whole sad spectacle and I'm sure you weren't doing that because you're hard of hearing! 

Silly, silly, silly!

So, here's what's wrong with FirstEnergy's estimation process -- it's broken and cannot be fixed!

When FirstEnergy stopped reading electric meters to save money in the fall of 2011, it created a string of inaccurate data.  In the fall of 2012, when this bad data started being used to calculate new estimates, the problem pancaked into some really crazy bills.  Then FirstEnergy thought they could devise some method to tweak their algorithm that would set things right.  Only that didn't work.  They tweaked some more.  And tweaked some more.  And tweaked some more.  What's left is something that is now a completely useless mess.  FirstEnergy needs to quit dumping time and money into future tweaks and begin rebuilding an accurate data base.  At their own expense, of course.
1 Comment

FirstEnergy Customers Complain to WV PSC

10/30/2013

9 Comments

 
In looking over my notes and talking to reporters and customers in the wake of the Potomac Edison/Mon Power General Investigation public comment hearings in Shepherdstown and Fairmont last week, it's hard not to notice that certain similarities keep popping up in unrelated customer stories.

1.    FirstEnergy's customer service center is rude, misinformed and unhelpful.

Representatives have told customers it is only required to read meters once a year, twice a year, or other incorrect intervals.

"I waited on the phone an hour and a half, like my time doesn't mean anything."  -- Customer Sonny Spurgeon in Shepherdstown

"We've been treated like trash!" -- Customer Richard Hamstead in Shepherdstown

"The term "customer" implies we have made a choice to purchase electricity from Potomac Edison.  We are not customers, we are ratepayers." -- Customer Patience Wait in Shepherdstown

"It is clear that FirstEnergy’s allegiance is to the almighty dollar, not its West Virginia customers." -- Customer Keryn Newman in Shepherdstown

"The PSC said I should have been arrested for stealing electricity."  -- Customer Sonny Spurgeon in Shepherdstown

"Seniors have been asked to read their own meters in horrible weather."  -- Maryland Potomac Edison Customer Doug Kaplan

"This company is no longer our local electric company and needs better public relations and communication with the public."  -- Berkely Co. Commissioner Elaine Mauck in Shepherdstown

Customer Amanda Newcome is outraged by Potomac Edison's customer service reps. who don't care, act like she doesn't have an issue, and don't want to help her.

Customer Mike Nemec has spent 30 minutes on the phone just trying to call in a meter reading.

Customer Lucinda Harden:  Tried to call Potomac Edison but got put on hold so long she gave up.  She can’t hold the phone that long.  In August, she tried to speak to "the complaint dept." but was told they have no complaint dept.  Talked with someone named Camille, who sent her to supervisor Kim, who was a "nasty lady."  Was told, "we're playing catch up in June" and in July she must have used more electricity than what was needed because they estimated off the month before.  She was transferred to Wendy from floor support, who put her on a payment plan so she could pay the bill.  Wendy wanted her to go read the meter, and she did, even though she is disabled and it was difficult to do.  They want her to read the meter every month from now on.  They sent her a detailed account history from July 2012 – July 2013, which only had 3 actual readings.  She has never seen a meter reader since Potomac Edison took over.

2.      It's not about the storms!


It is about a 5-letter word, but that word is "greed," not "storm." -- Customer Kery Fries in Shepherdstown

Storms are foreseeable, Potomac Edison should be adequately staffed to plan for them.

"It must be new if meter readers go out for downed wires.  I'm a volunteer fireman and I never saw a meter reader come for downed wires." -- Customer Kevin Borher in Shepherdstown

3.    FirstEnergy is not adequately staffed to provide customer service. 

"Most offensive is the suggestion from FE that customers should call in their meters.  It’s not the ratepayers job – it is built into the rates and billing that they will do their job.  I wonder whether there has been a business decision to keep meter readers at a low level and shift burden to ratepayers to save money.  In the grocery store we have a choice of full-serve or self-serve checkout.  Here we don’t have the choice.  Has there been an effort to change billing to save money for the company?" -- Delegate Stephen Skinner in Shepherdstown

Meter reading staff in Jefferson County cut to 5 after merger.

Todd Meyers says it takes 3 weeks to train a meter reader.  If meter readers are being used to restore power, what job are they doing? 

Potomac Edison has been hiring temporary meter readers.  Once the investigation goes away, will the temporary meter readers be let go?

Gene Hutzler has made numerous requests for the company to trim vegetation interfering with lines, but nothing has been done.

"FirstEnergy is a union-buster." -- Customer Danny Lutz in Shepherdstown

"It's not our job to read meters, it is our job to pay the bill!" -- Customer Meredith Wait in Shepherdstown

4.    FirstEnergy's customer usage data is hopelessly skewed due to numerous estimates and attempts to tweak the estimation routine that have caused even more inaccurate data.

"I have a bill with 5 consecutive estimates since April." -- Customer George Rutherford in Shepherdstown

"I'm getting two bills every month.  Something is wrong here." -- Customer Janet Jeffries in Shepherdstown

"8 out of 13 bills have been estimated – April, May, June were estimates.  February said no usage at all.  What does this do to future estimated readings when there is so many estimates?" -- Customer Sharon Wilson in Shepherdstown

5.    FirstEnergy's merger has hurt customers.


" A mistake on FirstEnergy’s part should not become an 'emergency' on our part. There’s no reason customers should be asked to put up with this kind of incompetence, especially when the company continually ties its excuses to merger activity. All of this has come at a great cost to customers.  Now it’s time for FirstEnergy to shoulder some of the financial burden it has created."  -- Customer Keryn Newman in Shepherdstown

"How can we set budgets for small businesses with these inconsistent bills?  This is hurting businesses." -- Customer Meredith Wait in Shepherdstown

"This is not a game, not a numbers problem, it’s a human problem.  People are suffering – you all go home to a warm house and a meal.  Think hard about it.  I'm tired of corporate crap – you need to care about people." -- Customer Laurie Scott in Shepherdstown

Walter & Gerri Seager of Damascus, Maryland, on their second home in Harmon, WV:  They have paid an electric bill every month for the past 14 months, most of which were estimated, and then about a month ago got a bill for more than $5,300.  They brought in 3 master electricians to make sure nothing is wrong in their house, and nothing is wrong.  The bill still averages more than $500/month for a home that is only used several days a month by 2 people and has non-electric heat and hot water.  Something is wrong at the electric company, not at the Seager's end.
 
There were numerous suggestions for the PSC:

1.    At company expense, read meters monthly for at least one year to gather accurate data for future estimates.  -- Customers Fries, Hamstead, Wait, Newman, Hutzler, Kaplan, Mauck, Rutherford, Skinner, Wilson, Nemec, and others.

2.    Privatize meter reading services so that failure to perform service does not produce financial benefit for FirstEnergy.  -- Customer Kery Fries in Shepherdstown

3.    $5.00 customer charge should be explained on every bill, and any amounts not used to read meters as required should be refunded to customers.

4.    PSC and Consumer Advocate must zealously guard against abuse by monopolies in West Virginia's regulated environment.

"There is no excuse for this kind of abuse of captive customers in a regulated environment." -- Customer Keryn Newman in Shepherdstown

5.    Require FirstEnergy to take actual readings for new customers for one year.  They should not be allowed to estimated based on prior customer usage.

6.    FirstEnergy should provide rebates to customers who read their own meters or go "paperless."  These customer actions currently save the company money, not the customers.

7.    Why don't we have smart meters?

"Why is it we still have horse & buggy meters?  Why not digital meters?  Why not smart meters?" -- Customer Duane Thompson in Shepherdstown

8.    Anyone calling Potomac Edison should receive a follow-up letter with a postage-paid return post card addressed to the PSC for rating the service received.

9.    The PSC should hold general public hearings in 4 different quadrants of the state yearly to hear from the public and improve communication and service.


At the hearing, the PSC shooed the customers with the most shocking stories to FirstEnergy's "customer service" area backstage.  I've been asked by a reporter if that was effective -- aside from the one gentleman who could be heard yelling from that area after he disappeared and was told by the police to stop harassing Potomac Edison personnel, and my own personal experience, I don't know.  If you visited the "customer service" reps. and have a story to tell, let me know.

Potomac Edison also had a story to tell the PSC, complete with Power Point presentation.

Ken Strah, the estimating guy, said they have adjusted their estimation algorithm to not perpetuate last year’s bad estimates, and implemented enhancements to the estimation process to better predict usage of estimated bills (but customer testimony proved that’s not working, as incorrect estimates continue).

Jim Painter, the meter reading guy, said the company will “focus on minimizing estimates” but snow will prevent them from reading meters (more excuses, YAY!)  They are still looking at their estimation routine with EPRI and should be done in December. 

Meanwhile, the company continues public outreach – "Call us!"  You need to call them to continue THEIR public outreach?  FirstEnergy advised everyone to get on their Average Payment Plan to smooth out the company’s estimation errors.

WV Operations Director Holly Kauffman says the company has shown “continuous improvement.”  She never said the word "merger" once, although that seems to be the source of all these problems.  Holly says she is committed to customers.  Where has Holly been?  Where was Holly at the Citizens' Public Hearing back in May?  She received her own personal invitation, which she completely ignored.  Holly is useless fluff.

FirstEnergy's corporate counsel, Gary Jack, pretended all this information from his company is completely fascinating.  Like he hadn't had a hand in putting the excuses together?  The funniest part -- his studious concentration was repeated on the second day!

The company claims that meter readers “investigate” outages and standby until crews arrive.  Has anyone ever see this happen?  I've driven by plenty of downed wires over the past couple of years and NEVER saw a meter reader onsite.

FirstEnergy says it has added a floater position for meter reading to deal with life's little realities.  Is that one for each operating company?

FirstEnergy admits that in December, 28% of customers had back-to-back estimates.  Complaints peaked in April and June of this year, but their PowerPoint graph still showed complaint numbers higher than "normal."

FirstEnergy said it "can’t rest on its laurels."  What???  What "laurels" would those be?

FirstEnergy says it will evaluate additional criteria to flag estimates that need review before bills are sent.  But you can call in actual meter readings on months scheduled for estimated readings or enter actual readings using the companies’ website (because they don't intend to do their job?)

I would like to know how these monthly statistical reports to the PSC help customers?  The company missed readings for a whole bunch of invented reasons – when are they just going to man up and apologize?

I think the PSC got an earful.  Let's hope they will now take the initiative to regulate FirstEnergy.
9 Comments

FirstEnergy and WV PSC Use Media to Quell the Public at "Public Comment Hearings" in West Virginia

10/25/2013

2 Comments

 
I said it out loud the other night in Shepherdstown, but it bears repeating:  FirstEnergy and the West Virginia Public Service Commission ought to be ashamed of themselves!

Regulated and regulator have joined together to expend quite a bit of time and money on a farcical series of "public comment hearings" that turned out to be nothing but publicity stunts attempting to mollify unhappy customers, convince them that the company did nothing wrong, and that all the problems have been solved.  I'd expect nothing less from FirstEnergy, but I really expected more from the West Virginia Public Service Commission.

Fortunately, our legislature has our back this time and has opened their own investigation of the PSC's investigation.  Be sure to let your legislator know how unhappy you are with the PSC's behavior and media spin at the hearings.

The problems began with the PSC's announcement that FirstEnergy would be making a presentation at the beginning of what was inaccurately described as a PUBLIC comment hearing.  FirstEnergy isn't "the public," and we're sick and tired of hearing their spin.  We all know the story by heart now... Storms, 30% Colder, and Renumbering, Oh My!

In addition, the PSC "ordered" FirstEnergy to issue a press release about the meetings to the media.  FirstEnergy did it in such a way that nobody paid any attention and made sure there would be no advance notice of the hearings in the media.  None of the media I contacted knew anything about the hearings.  That's funny, when everybody in the area can recite FirstEnergy's billing excuses from memory.  The company didn't seem to have any trouble making sure that message got out to the media.

To top it all off, many who attended in Shepherdstown complained that, in addition to plain old lack of timely notice, the hearings were scheduled at hours inconvenient to the Eastern Panhandle's commuting population.  An evening hearing beginning at 5:30 was much too early, when at least 50% of the residents face at least an hour (or more, sometimes lots more!) commute back home after getting off at 5:00.  Since it was unknown how long the hearing would last, many simply didn't make the effort to come all the way to Shepherdstown to find out if it was still going on when they finally got back to West Virginia.

And then let's think about the PSC's order that FirstEnergy bring along a crew of customer service reps.  Why do you suppose that was?  It was so the PSC would have a fictional happy place to pass off the sadder stories they would undoubtedly have to endure at these hearings.  It makes them look like they care and that they have "helped" people.  Maybe it even makes them feel that way too, even if it isn't true.  The craziest moment of Shepherdstown's two hearings may have been when Chairman Albert went right on advising a disabled vet to visit the nice company reps in the other room to make things all better, while someone who went to Happy Town before her could be heard yelling "I don't want any more of your excuses!" while police ran through the auditorium to break it up.  Chairman Albert didn't miss a beat.  Was everyone holding hands and singing Kumbaya backstage in the customer service area?  Nope, but that's another post.

Can we also ponder the timing of these "public comment hearings" in the grand scheme of the investigation?  Why did the Commission feel it was necessary to put the public input part of this investigation off for 4 months after opening the investigation?  It was because it was hoping that the public would lose interest while lower summer and fall usage made it appear that the company had "solved" the problem.

Of course, the media can't be entirely blameless here either.  The sad state of our media is readily apparent when reviewing "news" from the hearings.  Young reporters who are pushed to produce quantity over quality choose to take the pre-packaged story presented to them by spinners like Toad Meyers and Susan Small, even when it doesn't correlate to what the reporter can see and hear for herself.  Much of the news to come out of the supposed "public comment" hearings was focused on the actions of the company or the PSC, instead of the actual public they were intended to hear from.  Reporters weren't interested in hearing from the public, they were satisfied with the PSC and FirstEnergy's interpretation of why the public was unhappy. 

Only the experienced WV Public Broadcasting reporter produced an accurate, unbiased story.  The rest of the reporters were just wasting our time.

The sole bright spot in this debacle was watching FirstEnergy spinner Toad Meyers become increasingly unglued as the questions got harder.  The quotes attributed to him went from bad to worse. 

“There may be a little bit less meter readers .."

For a little bit less accuracy?  Ya know how I know you're making crap up, Toad?  Because it's a grammatical disaster!

“We’re trying to improve the estimation, the logarithm, the routine so we can get a more accurate estimate.”


If FirstEnergy doesn't understand the difference between a logarithm and an algorithm, its no wonder they're having so many problems estimating peoples' bills!


“One thing that I’ve got to stress that is very important, everyone’s situation with electricity is unique, with their properties, with their usage. So if people have a question they need to call us directly and work with us.”

What does uniqueness have to do with it being important to contact the company (instead of The Coalition for Reliable Power perhaps?)  Logic fail!

Mon Power Spokesman Todd Meyers said it all started with the derecho.

No, it all started with the costly Allegheny Energy/FirstEnergy merger in 2011.  The company needed to find a way to pay for that, and cutting services for customers produced "merger synergies."

Meyers acknowledged that meter reading has declined, explaining that about seven percent of meters were being read every other month, a number that fell to two and a half percent.


Let's take a moment to examine Toad's Magic Math.  Seven percent of meters are being read every other month.  This means that 93% of meters are NOT being read every other month.  This statistic lines up with the results of our own customer survey, where 89 of 92 customers said their meter had not been read every other month as required by the tariff.  But why would Toad brag about this stunning lack of performance?  Why, Toad, why?

Meyers said the next step after the hearings will involve the PSC looking at the transcripts from the hearings and sending reports to Mon Power and Potomac Edison..."

Who's in charge here?  Mon Power and Potomac Edison or the PSC, compiler and sender of "reports" for the company's use?

"Between the storms, between the renumbering, something that we instituted to make the process better but in the short run it actually made some things worse. You had a string of estimates, and that could result at the end where we came out to read a meter in a larger than expected actual bill," said Todd Meyers.


Wow, Toad!  That's a very impressive string of senseless babble.  It's practically incoherent.  You should get a nice bonus for that one!

"Our belief is that we're able to do it every other month, it's worked well doing that except for more recently but i think we're going back to the place where it worked pretty well," said Todd Meyers, Potomac Edison's spokesman.

Again, incoherent babble that would make an English teacher cringe, but let's try to translate.  Toad believes that if they "do it" every other month it works well.  Except that they didn't "do it" every other month.  So, it didn't work well.  Toad thinks that maybe they might be going back to "doing it" every other month, so maybe it's going to work "pretty well."  Except, it's not. 

"Believe me, we want to make this right, we want to fix this and we worked very diligently to do that and we continue to work, and anything that comes out of this investigation, anything that the PSC prescribes is something that would be good to do going forward, you know, we'll be doing that," said Meyers. 

I'm sorry, I'm not buying this fake concern.  Is there anybody who thinks Toad is sincere?  "Believe me?"  Hahaahahaaaaa!  After all these years of pissing on the public's leg and telling them it's raining, now Toad wants us to "believe" him?  FirstEnergy has steadfastly denied there is a problem to be fixed, and has only "worked very diligently" to cover up the company's culpability.  I am thrilled to know that "we" will be following any orders of the PSC though.  Nice touch!  But, the company already admits it has not complied with its PSC-ordered tariff, so we'll assume it will afford equal deference to whatever the PSC "prescribes."  (I would order a big ol' dose of sodium pentothal).

However, they don't think they'll be able to do a meter reading every month because of staffing.

I guess it's going to cost your company some money to hire enough staff then, Toad.  Duh.  That's part of the penalty to "make things right."

Moving forward, Potomac Energy officials say they'll do what's best for the customer.

Because the company has been doing what's best for the company up until this point?

Poor, idiotic Toad Meyers.  But, at least he was only attempting to represent his company.  The PSC's spinner, Susan Small, was attempting to tell the media what the public was thinking.  Susan has no idea what the problem is here, much less what the Commission will do about it.  Susan blew off the Citizens' Public Hearing in Charles Town in May, sending a letter of excuses for the company, instead of a staff member.  Susan has a lot on her plate, and that's a shame, but if she can't do her job because of it, then she needs to step down.  When asked why she couldn't be bothered to do any public relations to promote these public hearings in the media, Susan hid behind the requirement that they be advertised in the legal section of the local paper as "adequate notice" to the public.  When asked about the purpose of the press release FirstEnergy was ordered to produce, I don't remember her having much of an answer.  Let's take a look at Susan's attempts to frame a problem she knows nothing about (and probably cares about even less):

“My bill is inconsistent, I’m getting estimated bills instead of actual bills,” are the most common complaints the PSC has heard, Small said.

“Between weather situations and the way that they changed their billing processes, many customers have received two, three, four, five estimated bills in a row,” Small said. “And unfortunately, a lot of those estimates have been very low, so when the true-up bill comes, all of a sudden, it’s much higher than the customer’s expecting.”

“That’s what we’re working on now. One of the things they (the customer) can do is call the company and make sure that it’s an actual reading, that that’s actually what they owe, and if it’s more than they can handle right off, work out a deferred payment plan, sort of putting your arrearage on a budget plan so that you can pay it off over a number of months,” according to Small.

Small added FirstEnergy, the parent corporation of both companies, is being required to submit customer service metrics to the PSC on a monthly basis, but they also want to hear from the customers.


"They ordered the companies to file specific customer service metrics so we can keep track of things like calls into the call center, whether or not people are being satisfied with the first call, how long they're having to wait on the phone," said PSC spokesperson, Susan Small.

"It wouldn't be unreasonable in this kind of case for the commission to issue a final order that required first energy to keep up the flow of data coming into the commission so we can make sure that their customer service numbers are where they should be and the customer is getting the service they deserve," said Small.

I'm sure those customer service metrics are going to come in handy to keep people warm this winter when they can't pay their badly estimated bills.  Maybe Susan intends for you to roll them up into paper logs and burn them to keep warm?

Thanks for the "help," Susan.  I'll be handing out YOUR phone number to people who can't pay their bills this winter, instead of the phone number of my little friend at the customer call center.  Too bad Susan isn't proactive enough to provide advice on how to prevent those large bills from ever happening in the first place, so that no one ever has to "pay their bill off over a number of months," because then we wouldn't need to hand out anyone's phone number.

This story is an absolute mess.

This story doesn't even mention the PSC's involvement.

Maybe Susan should have been doing her job all along, instead of trying to simply make it LOOK like she's been working by jumping in front of every TV camera that showed up at the hearings.

So, let's review.  The PSC set this up to make itself simply appear to be taking action.  The purpose and timing of the hearings was carefully planned to make sure most people could or would not attend.  Despite a steady turn out of articulate, credible "public" with compelling and shocking stories that painted FirstEnergy's incompetence and greed as bordering on criminal, the story that was spun for the media is that the problems are fixed and everyone is happy. 

The West Virginia Public Service Commission continues to fail the public it is tasked with protecting from utility monopolies.  Tell your elected officials that we need to make changes at the PSC until the needs of the public are being served.
2 Comments

RSVP for PATH "Open Meeting" Because PATH Will Take Another $39.8M From You in 2014

10/25/2013

0 Comments

 
Time is quickly running out to send in your RSVP for PATH's upcoming "Open Meeting."  Follow the instructions here to send your RSVP for the meeting to PATH's lawyer on or before Oct. 28.

This isn't a real "meeting."  An overconfident and arrogant PATH wasted your money for several years holding actual in-person meetings, complete with coffee & donuts, at its fancy DC counsel's office.  However, the whimpering remains of PATH now holds this "meeting" over the phone via conference call.

During the call, you can ask PATH any questions about its plan to collect another $39.8M from you in 2014.  If you are a party to the abandonment case, you cannot ask about that case, but only about the information contained in the 2014 Projected Transmission Revenue Requirement filing linked above.  Silly, yes, but when has PATH ever been logical?

A lot of you have been asking me what's going on with the abandonment case and why PATH continues to collect money from you.  Until that case settles or is heard, PATH is permitted to continue to collect the reimbursement it requested when it filed for abandonment.  If, after the case is over, it is determined that PATH has collected more than it is allowed, PATH will have to refund the difference to you.

So, send in your RSVP for the November 1 @10:00 a.m. phone meeting and belly up to the farcical ratepayer question bar.  If you don't come, PATH will think you don't love them anymore.
0 Comments

FirstEnergy and Its Captive Customers Give Each Other the Stink Eye in Shepherdstown

10/24/2013

8 Comments

 
Customer Sharon Wilson was one of many this morning who refused to be silenced by FirstEnergy corporate counsel's stink eye.  I think he needs to practice that look in front of the mirror some more.  It doesn't work.

FirstEnergy faced off with ratepayers in Shepherdstown at two public comment hearings in as many days.  Despite the plaintive wail coming from a march of malcontents, the company, the PSC and some media outlets continue to cling to their fantasy that things are getting better.  They're not, of course, but FirstEnergy persists in denying any wrongdoing, while continuing to make excuses for the reprehensible way it has treated its meal ticket, err.... "customers."

The PSC and the company, working in tandem, quelled their fright of the Eastern Panhandle by scheduling the hearings for hours inconvenient for the area's DC-communting population, and refusing to undertake any effort to give the public adequate notice of the hearings. 

No matter -- the company was still resoundingly spanked by a determined group of unhappy customers who came to tell their stories.  Those who made the effort to speak out in Shepherdstown included a single mom who had to choose between feeding her child or having heat due to outrageous Potomac Edison bills, and a retired couple who received a bill from Mon Power for their West Virginia second home that totaled more than $5,000.  Many more came before the Commission and though their personal stories were varied, all those who spoke asked that the company be ordered to read every meter every month for a period of one year in order to develop accurate usage data on which to base future estimates.

The public also resoundingly agreed that FirstEnergy's presentation of continued excuses was... crap!  The only ones who seemed to enjoy it were the media and FirstEnergy's lawyer, who listened raptly to the exact same presentation with a pseudo-fascinated concentration... twice.

In the face of all its misdeeds being publicly exposed by customer after customer, FirstEnergy continued to make excuses and deny that there is a problem.  FirstEnergy steadfastly refuses to admit its failings, issue a credible apology, and make amends for the injury it has caused to its captive customers.

Disgusting.
8 Comments

Potomac Edison Customers Urged to Tell Their Stories at West Virginia Public Service Commission Hearings in Shepherdstown October 23 & 24

10/21/2013

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In the wake of customer education meetings held across the state last week, the Coalition for Reliable Power and the Jefferson County NAACP are urging Potomac Edison customers to turn out for official public comment hearings October 23-24 in Shepherdstown.

Community members who attended the group meetings were also provided with information and tips for coping with inaccurate Potomac Edison bills this winter.

“We recommend that you check the accuracy of your electric bill every month, just as you would any other bill,” said Keryn Newman of the Coalition for Reliable Power.  “Learn to read your meter, compare your usage to the billed amount, and call Potomac Edison to ask for a corrected bill when the numbers don’t agree.”

In addition, Potomac Edison customers were urged to ask the Public Service Commission at the hearing to require Potomac Edison to read every meter, every month, for one year in order to compile accurate data on which to base future estimates.

Senator Herb Snyder also encouraged those in attendance to participate in the PSC’s public hearings to help the Commission gather evidence for its investigation.

“This is an opportunity for the citizens of the Eastern Panhandle to speak directly to the Public Service Commissioners. Potomac Edison customers should be as specific as possible about their particular power company billing problems and any unsatisfactory interaction with the power company while attempting to resolve those problems. Citizens that have recently had or are continuing to have power company billing problems should definitely speak at the public hearing. The Public Service Commissioners are traveling a considerable distance to hear directly from the citizens. It is important that citizens attend these public hearings,” said Snyder.

The public comment hearings are scheduled as follows:

Where:    Shepherd University, Frank Center,                           Shepherdstown

When:    Beginning at 5:30 p.m.
             Wednesday, Oct. 23rd, or

            Beginning at 9:30 a.m.
            Thursday, Oct. 24th

Hearings will run until all those signed up to speak have had an opportunity to do so

The Jefferson County NAACP is a branch of the National Association for the Advancement of Colored People that promotes social justice for all citizens. The Coalition for Reliable Power is a grassroots coalition that advocates for decentralized power. For more information, see www.jcwvnaacp.org and www.forreliablepower.com

See story on WHAG.

0 Comments

FirstEnergy Customers Learn About Their Electric Bills

10/18/2013

4 Comments

 
Customers of FirstEnergy subsidiaries Mon Power and Potomac Edison came away with useful information from last night's customer education meetings in Morgantown and Charles Town.  Another meeting will be held tonight in Arnoldsburg.  The meetings, hosted by the Coalition for Reliable Power and affiliated organizations The Mountain Institute and the Jefferson County NAACP, provided advice and suggestions for how customers can protect themselves from paying badly estimated electric bills that snowball out of control this winter.

The Coalition recommends that customers learn how to read their meters and take a reading as soon as possible after receiving their monthly bill.  If the billed usage varies from the recorded usage by more than 100kwh, the customer is urged to call the company at 1-800-686-0011 to provide an actual reading and request a re-billing.

Customers were also surprised to learn of a $5.00 flat monthly charge per customer included in the "base charge" line item of their bill.  This "customer charge" pays for meter readers, billing, distribution system maintenance and other fixed costs.  However, if the company doesn't spend the full amount every month, whatever is left goes into the utility's pocket as extra profit!  Potomac Edison and Mon Power never have to account for how that $5.00 is spent, therefore they may trim expenses, such as cutting their meter reading staff or failing to perform right-of-way or line maintenance, in order to pocket the difference.  These FirstEnergy companies serve approximately 500,000 customers in West Virginia.  Half a million customers x $5.00 every month equals $2.5M paid to FirstEnergy every single month.  Whatever the company doesn't spend on services for us is theirs to keep.

Customers were also upset to learn how much the recently approved Harrison Power Station purchase is going to cost them.  More than $800M must be repaid to the company over the next 27 years, plus an additional $240M for needed pollution control upgrades.  Customers don't feel that they are being adequately protected by the WV Public Service Commission or the WV Consumer Advocate.  Who's looking out for residential ratepayers?  The meeting attendees think C4RP and its partner groups are doing a better job than appointed officials!

The Coalition was joined by Senator Herb Snyder last night in urging customers to attend the WV Public Service Commission Public Comment Hearings next week to tell their stories.  The PSC needs the help of every customer who has been affected by the company's shoddy business practices to provide evidence by telling their story.  Only if enough of us step up to tell our stories and corroborate each other will the PSC have the evidence it needs to properly punish the company for its deliberate injury to customers, as well as to order remedies to get things back on an even keel.  The Coalition is recommending that customers request that the PSC require the company, at its own expense, to read every meter, every month, for one year in order to develop accurate base line data for future estimates.

The Public Service Commission Public Comment Hearings will be held:

October 23, 2013       5:30 p.m.    Shepherd University Frank Center, Shepherdstown, WV
October 24, 2013       9:30 a.m.    Shepherd University Frank Center, Shepherdstown, WV
October 24, 2013       5:30 p.m.    West Chester Village, Stafford Room, Fairmont, WV
October 25, 2013       9:30 a.m.    West Chester Village, Stafford Room, Fairmont, WV

You must sign up with the WV PSC clerk in the lobby in order to make a comment to the Commissioners.  Comments may be limited in length, depending on the number of commenters who show up, so that everyone gets a chance to speak.  Commenters should not expect to engage in dialogue with the Commissioners or the company.  You may provide your comments without receiving feedback.  The PSC has ordered that the first 30 to 60 minutes of the hearing will consist of the company discussing:  the circumstances that gave rise to the current customer meter reading and billing problems; how the merger and severe storms in 2012 affected customer meter reading and billing; changes implemented to improve customer meter reading and billing; planned changes to improve customer meter reading and billing; and services available to customers continuing to experience meter reading and billing problems.  If you arrive a little late and miss FirstEnergy's infomercial of excuses, that's okay.  The hearing will continue as long as people continue to arrive and sign up to speak.

In addition, the PSC has ordered that the company arrange for its representative(s) to have access to customer records at each hearing and be available to speak with customers individually after the completion of public comment.  So, if you have a question about your bill(s), bring it along and get in line to talk to a representative.  There's no guarantee that  your in-person wait will be quicker or marginally more pleasant than the endless hold queue you are routinely placed in over the phone, but hopefully it will be a lot harder for those customer service representatives to be snotty and unpleasant when they are face-to-face with real people.  It's nice for the PSC to provide the company's staff with this little reminder that they are supposed to serve real people, so let's all do our part to help them cast this production.

And remember -- tell the PSC -- EVERY METER, EVERY MONTH!

Cross posted from The Coalition from Reliable Power Blog.  If you have questions or need additional information, email The Coalition.
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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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