Historical Journal

Merger creates largest rate reduction in Ohio history

Customers in northeast Ohio saw the largest utility rate reduction in the state's history with the merger of Ohio Edison, Cleveland Electric Illuminating and Toledo Edison to form FirstEnergy in 1998.

Negotiated by the Office of the Ohio Consumers' Counsel and the merging electric companies, the rate plan saved residential consumers nearly $500 million. The nine-year plan saved households an average of $536 over the life of the plan.

This year (2006), a final 20 percent reduction from the 1997 base rates was implemented and FirstEnergy is prohibited from filing for an increase. The plan did not prohibit changes in the electric industry such as municipalization or competition among suppliers.

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