The Press Newspaper
Three days after the Public Utilities Commission of Ohio modified a rate plan filed by utility companies of FirstEnergy Corp., the companies announced they are withdrawing their application for the plan.
Of the 2009 increase, about 3.2 percent pertains to the companies’ pending distribution rate case.
FirstEnergy had estimated the impact on a typical residential monthly bill in the Toledo Edison service area – based on 750 kilowatt-hours of usage - would have been a decrease of 16 cents this year followed by increases of $3.06 and $3.30 in 2010 and 2011 respectively.
After reviewing modifications made to the plan by the PUCO, FirstEnergy announced it “… no longer maintains a reasonable balance between providing customers with continued rate stability and a fair return on the companies’ investments to serve customers.”
The PUCO reduced the base generation rates in the FirstEnergy proposal and said it determined that market rates have declined significantly since FirstEnergy filed its ESP application.
Under state law, utilities are required to provide consumers with a standard service offer, consisting of either a Market Rate Offer (MRO) or electric security plan. In November, the PUCO rejected FirstEnergy’s MRO application, which would have based consumers’ bills on bids by potential suppliers.
Alan Schriber, chairman of the PUCO, said the FirstEnergy MRO proposal “didn’t demonstrate that its competitive selection process would result in an open, fair, and transparent process.”
When it announced it was withdrawing its ESP, FirstEnergy said it would implement a competitive bidding process for procuring electric generation for delivery from Jan. 5 through March 31, 2009. The process would be for customers who choose not to selective an alternative supplier.
Bids were due Dec. 31, 2008 and another bidding process will be conducted later to meet supply needs beyond March 31.
“The Request for Proposal is being conducted to ensure that customers have a reliable supply of electricity following the Public Utilities Commission of Ohio’s actions to deny the companies’ Market Rate Offer filing and significantly alter their Electric Security Plan…” the company said.
Combined, Toledo Edison, Ohio Edison, and Cleveland Electric Illuminating service about 2.1 million companies in Ohio.
Rate reduction requested