If approved by PUCO, companies would revert to a previous rate plan
AKRON, Ohio
, Oct. 29, 2024 /PRNewswire/ -- FirstEnergy Corp. (NYSE: FE) Ohio electric companies – Ohio Edison, The Illuminating Company, and Toledo Edison – have filed a notice with the Public Utilities Commission of Ohio (PUCO) to withdraw their current Electric Security Plan (ESP) 5, which took effect on June 1. If approved by the PUCO, the companies would revert to their prior ESP4, which was in effect through May 31, 2024.
Under the ESP4 framework, FirstEnergy's Ohio electric companies provided customers with reliable and affordable power for eight years. Reverting to the plan will help address uncertainties created in ESP5 that the companies had expected to resolve through the rehearing process. A recent Ohio Supreme Court decision unrelated to the ESP ended the potential for a rehearing and prevented the companies from obtaining certainty for themselves and their customers in ESP5. FirstEnergy's ESP4 would remain in effect until a new ESP is filed and approved.
Torrence Hinton, FirstEnergy's President of Ohio: "We believe there is an opportunity to design a new plan that supports our Ohio electric companies' ongoing investments in the electric system while continuing to maintain affordable rates for customers. We look forward to working with stakeholders to ensure we have a plan in place that supports the needs of customers and communities – including low-income customers – and delivers the reliable, affordable power our customers expect."
Utilities in Ohio are required to file Electric Security Plans to establish electric service for their non-shopping customers. FirstEnergy's ESP4 maintains an auction process to determine the pricing and supply of electricity for customers who rely on their company for all aspects of their electric service while preserving the option for customers to select their own energy supplier. Reverting to ESP4 would also restore about $6 million in annual, nonrecoverable spending by FirstEnergy in energy efficiency programs, as well as economic development funding and bill payment assistance for low-income customers and communities.
As part of reverting to ESP4, FirstEnergy's Ohio electric companies intend to propose some changes to the previously approved plan, including enhancements to the auction process that took effect under ESP5. These changes aim to help ensure competitively priced electricity for customers who do not shop by helping increase the number of suppliers participating in the auctions through supplier risk mitigation measures. The companies' return to ESP4, including any proposed changes, is subject to PUCO approval.
Returning to ESP4 is estimated to result in a bill reduction of about $2.00 for a typical FirstEnergy Ohio non-shopping residential customer using about 750-kilowatt hours (kWh) of electricity per month.
Ohio Edison serves more than one million customers across 34 Ohio counties. Follow Ohio Edison on X @OhioEdison, on Facebook at facebook.com/OhioEdison, and online at ohioedison.com.
The Illuminating Company serves approximately 755,000 customers across Ashtabula, Cuyahoga, Geauga, Lake and Lorain counties. Connect with The Illuminating Company at illuminatingcompany.com, on X @IlluminatingCo and on Facebook at facebook.com/IlluminatingCo.
Toledo Edison serves more than 315,000 customers in northwest Ohio. Follow Toledo Edison on X @ToledoEdison, on Facebook at facebook.com/ToledoEdison, and online at toledoedison.com.
FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation's largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at www.firstenergycorp.com and on X @FirstEnergyCorp.
View original content to download multimedia:https://www.prnewswire.com/news-releases/firstenergys-ohio-electric-companies-file-to-withdraw-electric-security-plan-302290659.html
SOURCE FirstEnergy Corp.
