Did Power Company Overcharge Buyers of ‘Interruptible’ Electric Service?
Elyria Foundry Company v. The Public Utilities Commission of Ohio, Case no. 2007-0860 ISSUE: Did the Public Utilities Commission of Ohio (PUCO) abuse its discretion by allowing an electric utility company to use an inflated cost-of-service formula as the basis for declaring an excessive number of “economic service interruptions” during which the company charged higher than standard “replacement” rates to its high-volume customers who had contracted for interruptible service? BACKGROUND: The Elyria Foundry Company procures the electricity to run its plant from Ohio Edison, an electric utility company whose rates and business practices are regulated by the PUCO. Like a number of high-volume users of electricity, Elyria Foundry contracts with Ohio Edison to receive a significant portion of its day-to-day power supply at a discounted “interruptible” service rate. In exchange for lower everyday rates, utility customers purchasing interruptible service agree either to curtail their use of el
