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Contact: Marty Berkowitz
(614) 387-2962

OCC supports decision to restore FirstEnergy all-electric discounts

COLUMBUS, Ohio – March 3, 2010 – The Office of the Ohio Consumers’ Counsel (OCC) today supported a decision that temporarily restores discounts to customers of FirstEnergy living in all-electric homes.

The decision by the Public Utilities Commission of Ohio (PUCO) came after the OCC requested that the PUCO restore these discounts and seek a long-term solution that would provide reasonable and equitable rates for all customers.

“We are pleased that the PUCO has adopted the OCC’s recommendation to restore the allelectric discounts,” said Janine Migden-Ostrander, Ohio Consumers’ Counsel. “We will be seeking clarification of the term ‘all-electric’ to ensure it applies to every all-electric customer, including those who were not receiving a discount after Jan. 1, 2007 and Toledo Edison customers.”

The PUCO’s decision returned rates for all-electric customers’ charges to those in effect on Dec. 31, 2008. The lower discounted rates will be in effect within 14 days. A staff investigation into the development of a long-term resolution of FirstEnergy’s rate structure for all-electric customers will be conducted. The findings of the investigation are due in 90 days. FirstEnergy serves about 1.9 million customers in Ohio.

The OCC also asked the PUCO to hold hearings, conduct a full examination of the impact on bills for customers at various winter usage levels and require FirstEnergy to provide bill data. The goal is to ensure fair and affordable rates while balancing the interests of all-electric consumers and other FirstEnergy customers.

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

• All-electric customers from each FirstEnergy territory receive the discounts so all homeowners are paying the same rates;

• Customer allegations that the company promised continuous rate discounts to allelectric customers be investigated;

• The PUCO investigate whether FirstEnergy used ratepayer funds to pay builders to construct all-electric homes and install high-usage hot water tanks;

• FirstEnergy be required to issue two public notices: one informing customers of the investigation and inviting them to participate in local public hearings; the other to explain the temporarily discounted rates and the investigation process;

• FirstEnergy explain why its Feb. 12 proposal to expand generation rate 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 in September; and

• FirstEnergy assist customers with arrearages through extended partial payment plans and annual, rather than quarterly, adjustments to their budget 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 website at www.pickocc.org.