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Contact: Ryan Lippe
(614) 466-7269

PUCO decision allows FirstEnergy rates to increase

COLUMBUS, Ohio – January 21, 2009 – Residential customers of FirstEnergy will pay more for the distribution of their electricity, but not as much as the utility had requested, the Office of the Ohio Consumers’ Counsel (OCC) announced today.

Based on a decision issued today by the Public Utilities Commission of Ohio (PUCO), FirstEnergy will receive approximately $137 million in additional annual revenue from customer rate increases. However, much of the requested rate increases not permitted by the PUCO were based upon deferred costs that could result in unjustifiable future rate increases.

“OCC worked tirelessly finding ways to reduce the rate increase proposed by FirstEnergy,” said Janine Migden-Ostrander. “We acknowledge that the utility’s proposed rate increase has been trimmed down, but remain concerned about the hardship of higher rates on customers. We will likely ask the PUCO to reconsider its decision.”

FirstEnergy proposed a $338 million annual revenue increase in June 2007.

The OCC’s experts testified that FirstEnergy’s request should have been significantly reduced. According to the OCC, FirstEnergy failed to justify any rate increases for Cleveland Electric Illuminating and Ohio Edison and recommended that the proposed increase for Toledo Edison customers be cut from $71 million to $24 million.

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.