FirstEnergy announced that its Ohio utilities – Ohio Edison, Cleveland Electric Illuminating Company and Toledo Edison – have reached a settlement with all parties involved to resolve multiple proceedings under consideration by the Public Utilities Commission of Ohio (PUCO). The settlement will provide $306 million in benefits to FirstEnergy’s Ohio utility customers.
“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,” said Steven E. Strah, FirstEnergy president and chief executive officer. “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.”
The parties to the unanimous settlement include: The Office of the Ohio Consumers’ Counsel, Staff of the Public Utilities Commission of Ohio, 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.
The open and transparent settlement discussions, which began in August, resolved a wide range of topics in ten proceedings before the PUCO, including Significantly Excessive Earnings Tests (SEET) for 2017-2020, audits of the companies’ energy efficiency riders for 2014-2018 and a review of the companies’ current rate plan that is required every four years.
The settlement includes the following benefits to all FirstEnergy Ohio utility customers:
- $96 million in bill credits associated with the companies’ 2017-2019 SEET cases, with $51 million allocated to residential customers.
- $210 million in future rate reductions for all customers, including $80 million in 2022, $60 million in 2023, $45 million in 2024, and $25 million in 2025.
FirstEnergy’s Ohio utilities’ current rate plan also will continue through May 2024, and these utilities will file their next base distribution rate case in May 2024.
The settlement has been filed with the PUCO and is subject to final Commission approval.