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Office of the Ohio Consumers’ Counsel
Northwest Ohio Aggregation Coalition
Citizen Power
Cleveland Housing Network
Consumers for Fair Utility Rates
Empowerment Center of Greater Cleveland
Neighborhood Environmental Coalition
Natural Resource Defense Council
Northwest Ohio Aggregation Coalition
Ohio Environmental Council
United Clevelanders Against Poverty

Consumer groups gain more benefits in FirstEnergy electric security plan agreement

COLUMBUS, Ohio – February 27, 2009 – The Ohio Consumer and Environmental Advocates (OCEA) obtained additional consumer protections in FirstEnergy’s proposed electric security plan as hearings were to begin yesterday. The protections were part of a supplemental agreement that will be added to the agreement signed Feb. 19 by FirstEnergy, Public Utilities Commission of Ohio staff and other parties. The OCEA members did not sign the Feb. 19 agreement because proper consumer protections were not included.

In the supplemental agreement, the OCEA obtained more benefits for residential consumers by adding better terms for government aggregation, low-income payment assistance, a renewable energy credit program and consumer representation in the development of energy efficiency programs.

Parties that have signed the supplemental agreement include: the Office of the Ohio Consumers’ Counsel, Northeast Ohio Public Energy Council (which includes more than 100 local governments in nine counties), Citizen Power, Consumers for Fair Utility Rates, Empowerment Center of Greater Cleveland, Neighborhood Environmental Coalition, Cleveland Housing Network, Natural Resources Defense Council, Northwest Ohio Aggregation Coalition (including the City of Toledo, Lucas County and other local governments), Ohio Environmental Council and United Clevelanders Against Poverty.

The improvement of the terms for governmental aggregation, which allows local governments to band customer together to buy electricity at a competitive rate, will allow approximately 600,000 Northeast Ohio consumers (and potentially consumers in other communities) an opportunity to receive competitive electric service at lower rates than what an electric utility might offer. FirstEnergy agreed to a phase-in credit on generation rates that will remove competitive barriers to aggregation.

A low-income fuel fund of $6 million will be made available to help low-income consumers who are at, or below, 200 percent of the federal poverty guidelines over the next three years. FirstEnergy will allocate $2 million to the fund per year with $330,000 per year to Toledo Edison customers; $695,000 per year to Cleveland Electric Illuminating customers; and $975,000 per year to Ohio Edison customers.

The renewable energy credit program will be created to help residential customers take advantage of renewable energy. The program will pay a fee to residential customers who want to install solar panels or other renewable energy sources to help FirstEnergy meet its renewable energy obligations under Ohio’s new electric energy policy. The program will help offset the costs of the customer-sited renewable energy.

Residential customers also will have greater participation and representation in the development and implementation of energy efficiency programs such as rebates for Energy Star appliances and discounts for home energy audits and weatherization programs. A working group will consist of interested OCEA members and other parties that signed onto the agreement.

Editor’s Note:

Attached are comments from some of the parties that have signed the supplemental agreement filed late yesterday at the PUCO. For additional comments, please refer to the contacts listed below.

Contacts:

Office of the Ohio Consumers’ Counsel: Anthony Rodriguez, 614-466-9547
Citizen Power: David Hughes, 412-421-6072
Citizens’ Coalition (Consumers for Fair Utility Rates, Empowerment Center of Greater Cleveland, Neighborhood Environmental Coalition): Tim Walters, 216-631-5800
Natural Resources Defense Council: Dylan Sullivan, 312-607-6027
Northeast Ohio Public Energy Council: Leigh Herington, 440-248-1992
Northwest Ohio Aggregation Coalition: Leslie Kovacik, 419-245-1893
Ohio Environmental Council: Nolan Moser, 707-225-4397

Compiled Statements about Supplemental Stipulation for FirstEnergy Electric Security Plan Filed February 27, 2009

Office of the Ohio Consumers’ Counsel:

“With the addition of these consumer safeguards, FirstEnergy customers will be able to have more options when it comes to the price they pay for electricity,” said Janine Migden-Ostrander, Consumers’ Counsel. “Additionally, the fuel fund will give many low-income customers more assistance to pay their electric bill and avoid putting them in a position of having to choose which bill to pay.”

Northeast Ohio Public Energy Council:

“This agreement should clear the way for the continuation of governmental aggregation and allows us to reinstate our electric rate discount, beginning in June, for as many as 600,000 customers in the 126 NOPEC-member communities,” said Leigh Herington, executive director of the Northeast Ohio Public Energy Council. “Our ability to enter into this stipulation was enhanced by the tremendous joint efforts of the consumers groups, particularly the Consumer’s Counsel. We know that residential customers will be better off because of all of these efforts.”

National Resources Defense Council:

“With this agreement, we are much more confident that FirstEnergy customers will receive the many benefits of cost-effective energy efficiency, which include avoided global warming pollution, delayed construction of costly new generation, and lowered electricity bills,” said Dylan Sullivan, Natural Resources Defense Council energy advocate. The OCC’s leadership in this fight was exemplary.”

Neighborhood Environmental Coalition:

“We applaud the inclusion of a fuel fund in the supplemental agreement,” said the Rev. Mike Frank of the Neighborhood Environmental Coalition. “This will help poor families maintain their utility service and pay their bills. We do urge Cleveland Electric Illuminating to cooperate with community agencies in implementing this fund.”

Citizens’ Coalition:

“The supplemental agreement improves upon the original agreement,” said Tim Walters, community organizer. “It adds needed provisions for residential customers including for energy efficiency and energy choice.”

Related Releases:

Consumer Groups Not Parties to Proposed Settlement of FirstEnergy Electric Security Plan

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.