Office of the Ohio Consumers' Counsel

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Ohio Consumers’ Counsel supports PUCO decision on FirstEnergy market rate offer

COLUMBUS, Ohio — November 25, 2008 — Today’s decision by the Public Utilities Commission of Ohio (PUCO) to reject FirstEnergy’s market rate offer received the support of the Office of the Ohio Consumers’ Counsel (OCC), the residential utility consumer advocate.

“We are pleased FirstEnergy’s proposal was rejected because it failed to meet a number of fundamental requirements under Ohio’s electric policy,” said Janine Migden-Ostrander, Consumers’ Counsel. “We share many of the PUCO’s concerns which were outlined in the comments the OCC made in this case. We are pleased that the PUCO adopted many of the OCC’s arguments.

“Given that FirstEnergy’s proposed rates under the electric security plan exceed market prices, a properly crafted market rate offer could potentially offer the lowest rate for consumers. However, FirstEnergy’s proposal was certainly not the vehicle to best produce that rate,” Migden-Ostrander said.

FirstEnergy’s electric security plan remains pending at the PUCO in a related case. Through testimony at the PUCO, the OCC has shown that FirstEnergy’s proposed generation and distribution rates are highly inflated over the expected results of setting generation rates by market prices and distribution rates through rate cases. If approved, the electric security plan would result in customers overpaying billions of dollars. The OCC believes FirstEnergy also should improve its reliability and do more to develop energy efficiency and demand side management programs for its residential customers.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC website at www.pickocc.org.