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Contact: Marty Berkowitz
(614) 387-2962

OCC requests temporary and immediate rate relief for FirstEnergy’s all-electric customers, review rate impact on bills

COLUMBUS, Ohio – February 25, 2010 – The Office of the Ohio Consumers’ Counsel (OCC) took action today on behalf of more than 100,000 customers of FirstEnergy living in “all-electric” homes. The residential consumer advocate filed a pleading with the Public Utilities Commission of Ohio (PUCO) asking for temporary and immediate relief from rate increases that some have reported being as high as 300 percent more than what they were paying a year ago.

“During these difficult economic times, it is imperative that we take action to protect consumers from sudden and drastic rate increases,” stated Janine Migden-Ostrander, Ohio Consumers’ Counsel. “FirstEnergy’s all-electric customers have reported unmanageable rate increases this winter, and we are asking the PUCO to grant temporary relief pending the outcome of a thorough review.”

The OCC’s proposal would temporarily restore the original discounts applied to generation and distribution rates for more than 100,000 FirstEnergy customers currently living in all-electric homes. The OCC’s proposal would not apply to special riders, which historically have increased equally for all customers. FirstEnergy serves about 1.9 million customers in Ohio.

The OCC also is asking the PUCO to hold hearings and require FirstEnergy to provide data that would allow a full review of the impact of its current proposal on bills for customers at various winter usage levels. The goal would be to ensure fair and affordable rates for all customers, balancing the interests of all-electric customers and the remaining FirstEnergy customers.

“The level of increase experienced by many all-electric customers requires that we all conduct a very detailed review of the rate impact on customers to come up with the right solutions,” Migden-Ostrander said. “By making this filing, our intent is to provide the PUCO with an alternative for grappling with this difficult and complex issue.”

In addition to requesting the temporary restoration of discounts, the OCC also is asking that:

• Temporary discounts be applied to each all-electric customer, including Toledo Edison customers, and all other all-electric customers without respect to when they first resided in an all-electric home;

• An appropriate balance be determined in establishing rates for all FirstEnergy customers, taking into account customer allegations that the company promised continuous rate discounts to all-electric customers;

• The PUCO investigate the allegations of customers regarding promises made, including whether FirstEnergy used customer or shareholder money to pay builders to construct all-electric homes and install high-usage water heaters;

• FirstEnergy be required to publish notice of the investigation, inviting customers to participate in local public hearings and send a second notice to all-electric customers explaining the temporary rates and the review process;

• FirstEnergy provide an explanation as to why the proposal it filed on Feb. 12, which included additional credits for some high-usage customers, was not made retroactive to the time when the discounts were removed or the beginning of the winter heating season (September);

• FirstEnergy provide data showing the bill impact of its proposal based on various levels of customer usage; and

• FirstEnergy assist customers with arrearages through extended partial payment plans and annual, rather than quarterly, adjustments to their budget plan.

“As the advocate for all of Ohio’s 4.5 million residential utility households, we recognize that electric, as well as natural gas, customers have been subject to higher rates for a number of reasons. In addition to providing immediate relief to those consumers who have been hit hardest by recent rate increases, we also need to determine how to develop fair rate levels for all customer rates going forward,” Migden-Ostrander said.

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 website at www.pickocc.org.