Watchdogs, auditors say FirstEnergy's $190M rate hike request is too much
FirstEnergy is asking the Public Utilities Commission of Ohio (PUCO) to order its consumers to pay $190 million more for their electric service.
The company says in a statement to 21 News, since its last rate review in 2007, "FirstEnergy's Ohio companies have collectively invested millions of dollars to modernize and strengthen the distribution system."
But some experts say those improvements aren't worth those extra millions.
FirstEnergy's $190 million request to PUCO includes a proposed $46.5 million increase for Ohio Edison customers.
But PUCO hired independent auditors whose findings suggest a total $8.5 million dollar revenue increase, replacing the suggested increase for Ohio Edison's customers with an $18.7 million rate decrease.
Consumer watchdog group Ohio Consumers' Counsel says Ohio Edison should not be the only one of FirstEnergy's companies to see a reduced rate.
"We've carefully looked at the proposal, we've brought experts to the table," public affairs liaison J.P. Blackwood said. "Our data supports a decrease for all three companies: Ohio Edison, Toledo Edison, and the (Cleveland Electric) Illuminating Company."
Blackwood added, the rate cut is something the company has allegedly tried to avoid since it's last rate case in 2007.
"FirstEnergy had gone to some great troubles -- in fact, there was a connection with a scandal-- to try to avoid having this rate case at this time, because they did feel that it was a chance where this rate case might lead to a rate reduction," he noted.
Two former FirstEnergy executives, CEO Chuck Jones and senior vice president Mike Dowling, await trial on charges that they bribed a former PUCO chairman with $4.3 million, in part to avoid their legal obligation to a 2024 rate review, among other favors. They have pleaded not guilty in the case.
The Public Utilities Commission of Ohio has not yet made a ruling on the FirstEnergy rate case, and will be hosting public hearings in Toledo, Cleveland and Akron.
Ohio Consumers' Counsel recommends FirstEnergy customers to attend, or submit comments online to be considered in the case.
A factsheet detailing the Ohio Consumers' Counsel's findings and recommendations can be viewed here.
