Office of the Ohio Consumers' Counsel

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Contact: Ryan Lippe
(614) 466-7269

Some FirstEnergy customers will see lower rates beginning in 2009

COLUMBUS, Ohio – January 7, 2009 – FirstEnergy will not be allowed to continue charging some of its customers for adders that were scheduled to expire at the end of 2008. This will result in lower interim rates for residential customers. Today’s decision by the Public Utilities Commission of Ohio (PUCO) follows the Office of the Ohio Consumers’ Counsel and other consumer groups’ recommendations to reduce rates for FirstEnergy’s residential customers beginning in 2009.

The adders, called regulatory transition charges, were initially approved under FirstEnergy’s electric transition plan and added hundreds of dollars per year to the bills of residential customers served by Ohio Edison and Toledo Edison. The charges will be allowed to continue for customers of Cleveland Electric Illuminating since the regulatory transition collection period for that operating company has not yet expired.

“Removing the regulatory transition charges from these FirstEnergy companies’ tariffs follows the law,” said Janine Migden-Ostrander, Consumers’ Counsel. “These companies have already collected all of the transition charges they were entitled to under the law. Consumers in the Toledo Edison and Ohio Edison service territories will be happy to know they will be getting the rate relief they deserve.”

FirstEnergy asked the PUCO in December to extend all of its current rates, including the adders, after the utility rejected a modified electric security plan that would have lowered generation rates below those requested by FirstEnergy. The electric security plan was required under the state’s energy law to establish new rates for expiring rate plans.

The regulatory transition charges are related to expenditures that had not been recovered by utilities as Ohio attempted to move from a fully regulated to a competitive generation market. Under Ohio law, they must expire once a utility has fully recovered the cost, which for Ohio Edison and Toledo Edison was Dec. 31, 2008, and for Cleveland Electric Illuminating is Dec. 31, 2010.

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 Web site at www.pickocc.org.