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Consumers for Fair Utility Rates
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Natural Resources Defense Council
Northeast Ohio Public Energy Council
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Neighborhood Environmental Coalition
Sierra Club
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United Clevelanders Against Poverty

Millions to be saved for FirstEnergy customers

COLUMBUS, Ohio – July 29, 2009 – Residential customers of FirstEnergy will save $178 million because of an agreement reached between members of the Ohio Consumer and Environmental Advocates and the company. The savings come from avoiding interest payments on distribution charges deferred for future recovery which were previously approved by the Public Utilities Commission of Ohio (PUCO) in March.

FirstEnergy also will add $2.5 million into a fuel fund that will aid low-income electric consumers, and a renewable energy credit program will be enhanced that pays residents for the environmental benefits associated with the generation of electricity from renewable energy sources.

“By prepaying costs which the Public Utilities Commission of Ohio already approved for FirstEnergy to recover, customers will get rid of hundreds of millions in interest costs,” Consumers’ Counsel Janine Migden-Ostrander said. “In return for prepaying, consumers will receive more bill payment assistance and increased incentives to produce renewable energy.”

In FirstEnergy’s rate plan, the utility was approved to collect $352 million in deferred distribution costs over 25 years from residential customers. The early payments will result in full collection of the costs by the end of 2010 and will eliminate $178 million in interest payments. The early payments only will be collected during non-summer months (September through May).

The agreement results in an improved residential renewable energy credit program that allows FirstEnergy’s residential customers with renewable generation to be compensated at a fair market renewable energy credit price over 15 years.

“The creation of this program will jumpstart residential renewable energy in Ohio,” Migden-Ostrander said. “With customer-sited renewable energy, bills for these customers can become more manageable while supplying themselves with clean and reliable electricity.”

Low-income customers will have additional aid to help pay their electric bills with the addition of $2.5 million to the fuel fund grant program. This brings the total aid in the program to $8.5 million over three year. The fuel fund provides assistance to families at 200 percent of the federal poverty level or below. The additional $2.5 million will be distributed evenly between Cleveland Electric Illuminating, Ohio Edison and Toledo Edison service territories.

Contacts:

Office of the Ohio Consumers’ Counsel: Anthony Rodriguez, 614-466-9547
Citizen Power: Ted Robinson, 412-421-7029
Sierra Club: Ned Ford, 513-600-4200
Citizens Coalition (Consumers for Fair Utility Rates, Empowerment Center of Greater Cleveland, Neighborhood Environmental Coalition): Joe Meissner, 216-687-1900 ext. 5672
Ohio Environmental Council: Nolan Moser, 707-225-4397
Northeast Ohio Public Energy Council: Leigh Herington, 440-248-1992

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.