The Public Utilities Commission has approved a new rate plan for FirstEnergy and American Electric Power, turning aside an aggressive ad campaign from critics that the so-called "electric security plan" was a bailout. The vote was unanimous but did include some modification to reduce chances of larger rate hikes.
Reaction to FirstEnergy's plan is coming from those in favor of it and against it.
In a statement, Akron mayor Dan Horrigan says the plan is both "good for Ohio and good for Akron", saying it balances interests of customers, economic development and the environment" and provides "eight years of stability"
The Sierra Club of Ohio is not a fan, again calling the order a "bailout". They say the PUCO "failed Ohioans" by - quote - "forcing them to subsidize aging, costly coal and nuclear plants, while guaranteeing profits for FirstEnergy's shareholders."
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(PUCO) The Public Utilities Commission of Ohio (PUCO) today adopted with modifications stipulations to the electric security plan (ESP) for FirstEnergy’s Ohio distribution utilities. The Commission order modifies the stipulation to limit bill increases. The ESP also promotes a modernized grid and continued customer shopping for electricity. The plan will ultimately determine the standard service offer (SSO) from June 1, 2016 through May 31, 2024.
“The Commission order strikes the highly challenging balance between consumers’ interests in cost-effective electric service and the vested interests of other diverse stakeholders,” said Chairman Andre T. Porter. “Today’s opinion and order affirms Ohio’s commitment to encourage a modernized grid and retail competition.”
The Commission’s opinion and order includes the approval of the Retail Rate Stability (RRS) rider which is intended to stabilize retail rates in FirstEnergy’s service territory. The Commission has incorporated additional safeguards for consumers through enhanced PUCO oversight including regular audits and monitoring of rider RRS. In order to protect customers against price fluctuations and provide additional rate stability, the Commission has modified the stipulations to limit average customer bills. Included in the Commission’s decision, the utilities’ base distribution rates will remain frozen for the eight-year term of the ESP.
The Commission, through today’s opinion and order, reinforces retail competition in Ohio for customers, competitive suppliers and businesses through innovative technologies and complementary safeguards. The Commission directs FirstEnergy to submit a grid modernization plan to the PUCO. Advanced technologies will reinforce Ohio’s energy infrastructure, enable customer engagement through data sharing with competitive suppliers, help utilities better respond to service issues, promote energy efficiency and encourage innovation in the competitive marketplace.
Additional value for Ohio’s consumers and businesses is highlighted in this order through contributions to low-income and economic development programs including a funding commitment from FirstEnergy for energy conservation and job retention programs and the continuation of the automaker credit.
FirstEnergy has established a goal of a 90 percent carbon emissions reduction from 2005 levels by 2045 and over 800,000 megawatt hours of annual energy savings through a restart of energy efficiency and peak demand reduction programs. Additionally, FirstEnergy has committed to submit a plan to procure at least 100 megawatts of renewable resources.
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(FirstEnergy, news release) FirstEnergy Corp.'s (NYSE: FE) Ohio utilities today announced that the Public Utilities Commission of Ohio (PUCO) approved, with certain modifications, Powering Ohio's Progress, their proposed Electric Security Plan (ESP). The approved plan is the result of a comprehensive settlement reflecting the diverse interests and concerns of 17 signatories, including the PUCO Staff and parties that represent residential, low-income, commercial and industrial customers, as well as competitive energy suppliers, schools and organized labor.
The plan will establish electric service for customers of FirstEnergy's Ohio utilities – Ohio Edison, Cleveland Electric Illuminating and Toledo Edison – over an eight-year period from June 1, 2016 through May 31, 2024. It outlines a series of steps to help safeguard customers against rising energy prices in future years, preserve key power plants that serve Ohio customers, reinstate energy efficiency programs, evaluate smart grid technologies, and includes a goal to reduce carbon dioxide (CO2) emissions by at least 90 percent below 2005 levels by 2045. The Commission also added certain additional customer protections.
The plan outlines a new retail rate stability provision related to a proposed eight-
year Purchased Power Agreement (PPA) with the Davis-Besse Nuclear Power Station in Oak Harbor, Ohio, the W.H. Sammis Plant in Stratton, Ohio, and a portion of the output of Ohio Valley Electric Corporation (OVEC) units in Gallipolis, Ohio, and Madison, Ind.
This arrangement will keep a diverse set of fuel sources available to generate electricity, rather than risking more plant closures that put our region at risk of higher energy prices in the years ahead.
"Today's decision will help protect our customers against rising electric prices
and volatility in the years ahead, while helping to preserve vital baseload power plants that serve Ohio customers and provide thousands of family-sustaining jobs in the state," said Charles E. Jones, FirstEnergy President and Chief Executive Officer. "The plan will also extend FirstEnergy's longstanding support for the customers and communities we are privileged to serve in Ohio, through a comprehensive settlement reached between our utilities and a broad array of stakeholders."
FirstEnergy's Ohio utilities expect to file new rates with the PUCO by May 2,
following the completion of a competitive auction process to buy electric generation
supply for their non-shopping customers. FirstEnergy expects that the vast majority of its Ohio utility customers will see lower total bills after these auctions. Over the eight-year term, the arrangement is projected to generate hundreds of millions in customer savings as retail power prices increase over time.
FirstEnergy's plan also establishes a goal to reduce companywide CO2 emissions
by at least 90 percent below 2005 levels by 2045. This is among the most aggressive targets in the utility industry, representing a potential reduction of more than 80 million tons of CO2 emissions. A carbon reduction report will be filed by November 1, 2016 highlighting a strategy to promote fuel diversification and carbon reduction, recognizing that energy efficiency, renewable energy resources, and other advanced resources may be part of the strategy.
FirstEnergy also will contribute more than $102 million over the life of the plan to
help low-income customers pay their electric bills, as well as provide energy efficiency and economic development funding for low-income customers and communities.
