Office of the Ohio Consumers' Counsel

Media Center

Contact: Ryan Lippe
(614) 466-7269

Ohio Consumers’ Counsel: Added consumer benefits will help FirstEnergy customers

COLUMBUS, Ohio – March 25, 2009 – Today’s approval of benefits for residential customers of FirstEnergy is good news and should have long-term positive impacts, according to the Office of the Ohio Consumers’ Counsel (OCC).

The benefits were included in a supplemental agreement spearheaded by the OCC who jointly participated with other advocates as the Ohio Consumer and Environmental Advocates. The advocates did not sign an original agreement involving FirstEnergy’s electric security plan because it did not include sufficient benefits for residential consumers and environmental interests. Both the original and supplemental agreements were approved today by the Public Utilities Commission of Ohio (PUCO).

“The approval of the additional benefits we negotiated will help the affordability of electricity for consumers in Northern Ohio,” said Consumers’ Counsel Janine Migden-Ostrander. “The consumer and environmental advocates group was able to negotiate benefits that should have a lasting impact on the ability for customers to save money. Commitments reached through the agreement will improve the likelihood of savings through governmental aggregation, provide more low-income assistance and put additional incentives in place for households to install renewable energy resources.”

The benefits obtained by the Ohio Consumer and Environmental Advocates include:

Improving the terms for governmental aggregation, which allows local governments to band customers together to buy electricity at a competitive rate. Better terms 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 those offered by the electric utility. FirstEnergy agreed to a phase-in credit on generation rates that will remove competitive barriers to aggregation that might otherwise exist if the PUCO orders a phase-in of new generation rates.
Creating a fuel fund of $6 million to help, over the next three years, low-income consumers who are at, or below, 200 percent of the federal poverty guidelines. FirstEnergy will allocate $2 million to the fund per year with $330,000 per year for Toledo Edison customers; $695,000 per year for Cleveland Electric Illuminating customers; and $975,000 per year for Ohio Edison customers. This allocation is based on the number of residential customers in each service territory.
Creating a credit program to help residential customers take advantage of renewable energy. The program will pay a fee to residential customers who 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 renewable energy that customers install on their property.
Allowing greater residential consumer 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 include interested groups from the Ohio Consumer and Environmental Advocates and other parties that signed the agreement.

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.