Settlement to provide $306M in benefits to FirstEnergy Ohio customers
With the announcement of a settlement between the Ohio utilities of FirstEnergy Corp. — Ohio Edison, Cleveland Electric Illuminating Company, and Toledo Edison — and all parties in multiple proceedings before the Public Utilities Commission of Ohio (PUCO), customers stand to gain $306 million in benefits.
All customers, regardless of the individual company, will net $96 million in bill credits, including $51 million allocated to residential customers, specifically. This stems from the companies’ 2017-2019 Significantly Excessive Earnings Tests (SEET) cases. Another $210 million in future rate reductions for all customers can be expected, although it will be split across multiple years: $80 million in 2022, $60 million in 2023, $45 million in 2024, and $25 million in 2025.
“FirstEnergy worked openly and collaboratively with all parties to understand their concerns, find common ground and reach a unanimous resolution that is truly in the best interests of all our Ohio customers,” Steven Strah, FirstEnergy president and CEO, said. “We appreciate the time, input, and efforts of all the parties involved in these important discussions, which bring clarity and resolution to these PUCO proceedings. FirstEnergy remains committed to working cooperatively with stakeholders going forward to help ensure we deliver safe, reliable, and affordable electric service, grounded in a culture of strong compliance, ethics, integrity, and accountability.”
Settlement negotiations began in August and covered SEET cases, audits of the companies’ energy efficiency riders for 2014-2018, and a review of the companies’ current rate plan. Rate reviews are required every four years. Another stipulation of the agreement is that FirstEnergy’s Ohio utilities will maintain their current rate plan through May 2024, with their next base distribution rate case to occur that month.
All portions of the settlement are subject to PUCO approval.
Parties to the settlement include the Office of the Ohio Consumers’ Counsel, Staff of the PUCO, Ohio Energy Group, Industrial Energy Users-Ohio, Ohio Manufacturers’ Association Energy Group, Ohio Partners for Affordable Energy, Nucor Steel Marion, Inc., The Kroger Co., Interstate Gas Supply, Inc., Northeast Ohio Public Energy Council, the Ohio Hospital Association and FirstEnergy’s Ohio utilities.
