Wednesday, 6 August 2008

FirstEnergy’s Ohio utilities come up with Electric Security Plan

The electric utility companies of diversified energy company FirstEnergy Corp. have filed an Electric Security Plan (ESP) with the Public Utilities Commission of Ohio (PUCO).

The filing features Ohio Edison Company (Ohio Edison), The Cleveland Electric Illuminating Company (CEI) and The Toledo Edison Company (Toledo Edison). It would phase in generation rates over a three-year period and incorporate the companies’ distribution rate case that was filed with the PUCO in June 2007.

Anthony J. Alexander, president and chief executive officer of FirstEnergy said the plan “protects customers from the kind of rate shock experienced in other states” while providing for appropriate investments in system reliability

He added, “At the same time, our company will provide up to $50 million to support energy efficiency, demand reduction and economic development and job retention programs under the plan.”

Under the plan, total customer rates - including generation, transmission and distribution - would increase an average of 5.3 percent in 2009, four percent in 2010 and six percent in 2011. Of the 2009 increase, approximately 3.2 percent is related to the companies’ pending distribution rate case. If approved, the ESP would represent the first increase in base rates since 1990 for Ohio Edison and 1996 for CEI and Toledo Edison.

Although the percentage change in rates will vary depending on usage, the impact on a typical residential monthly bill from Ohio Edison based on 750 kilowatt-hours (kWh) would be a decrease of $1.28 in 2009, followed by an increase of $3.06 in 2010 and an increase of $3.67 in 2011.

For CEI, the decrease would be $0.10 in 2009, then an increase of $3.45 in 2010 and $1.29 in 2011. For Toledo Edison, the decrease would be $0.16 in 2009, then an increase of $3.06 in 2010 and $3.30 in 2011.

Proposed rates reflect the end of transition cost recovery for all three companies, including CEI, which was scheduled to continue collecting regulatory transition costs through 2010.
The filing is required under Amended Substitute Senate Bill 221 (Am. Sub. SB 221).

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