FirstEnergy May Raise Rate Again
Ohio has been paying some of the highest electricity rates around. But, FirstEnergy customers may be looking at even higher bills in the future. That’s because FirstEnergy has filed to raise the distribution rate for each of its Ohio utilities again! But lawmakers and ratepayers are standing up and crying foul. This does leave two important questions though. Why does FirstEnergy want more money and why is there so much opposition this time around?
How Much Is FirstEnergy Rate Rise?
FirstEnergy has asked to raise $190 million to cover repairs and major investments and in their grid. The increase would show up in the utility distribution charges of your bill. For example, let’s say that you use 1000 kilowatt-hours (kWh) of energy per month. Illuminating Company customers would see bills rise from $173.61 to over $186. Likewise, Ohio Edison bills would rise from $170.23 to about $173.22. And lastly, Toledo Edison customer bills would rise from $1171.74 to $173.30.
Why Oppose FirstEnergy Filing
Back in February, FirstEnergy filed an electric security plan (ESP) that would raise rates twice over the next few years. The Office of Consumer’s Council (OCC) opposes the increase because it hikes bills for low and middle-income families.
The rate increase also hits hard after lawmakers ended subsidies to two FirstEnergy owned coal plants. The subsidies were originally part of the scandal-rocked House Bill 6 (HB6) that passed in 2019. The company has since paid over $300 million in fines to settle criminal charges linked to bribery. But, the subsidies were left in place and have cost ratepayers roughly $100 million annually for five years.
FirstEnergy contends it hasn’t increased distribution rates since 2007. Though PUCO has yet to rule, a consultant advised a smaller $8.5 million increase. Meanwhile, the OCC argues that PUCO should rule for a rate cut of $132 million per year instead.
Finally, some lawmakers point out that FirstEnergy laid off about 350 employees. They say that PUCO should consider these layoffs when reviewing the rate case.
How FirstEnergy Customers Can Save Money
Right now, we have to wait and see how PUCO decides on the FirstEnergy rate request. There is a chance that rates could rise, which means bigger bills, especially during the summer and winter months. But you can start saving money right now, with these simple strategies:
- Use a programmable thermostat to turn back the dial 7 degrees for 8 hours a day
- Replace old heating and cooling systems with energy-efficient options
Let’s not forget that you can also shop for the cheapest electricity rates in town right here at https://www.ohenergyratings.com. We’re also your first choice for news and tips that could affect your bills.