FirstEnergy to refund $306 million

The Public Utilities Commission of Ohio has approved a settlement agreement with the three FirstEnergy utilities, Toledo Edison, Ohio Edison and Cleveland Electric Illuminating Co., directing them to refund customers $306 million.
The settlement resolves 10 pending regulatory proceedings related to annual earning tests from 2017-20, a review of FirstEnergy’s electric security plan and energy efficiency audits for the years 2014-18.
The agreement calls for the utilities to refund $96 million related to the utilities’ 2017-19 annual earnings tests. Residential customers would receive a one-time bill credit of about $27. Non-residential customers would be provided about $2.60 per megawatt hour credit over six months.
The remaining $210 million would be refunded as monthly bill credits:
-$80 million during 2022
-$60 million during 2023
-$45 million during 2024
-$25 million during 2025
In September 2020, the PUCO opened a 4-year review of the FirstEnergy electric security plan to ensure its terms remain favorable when compared to a market rate option.
Ohio law requires the PUCO to review electric annual earnings of distribution utilities through what is called significantly excessive earnings tests (SEET). The regulator examines the utilities’ annual return on equity compared to similar situated utilities across the country.
The SEET test cases for 2017-20 were resolved under the agreement and provide the $96 million for customers.
In addition to the three utilities and PUCO, other parties signing on to the agreement include the Office of Consumers’ Counsel, Ohio Energy Group, Industrial Energy Users – Ohio, Nucor Steel Marion, Inc., Interstate Gas Supply, Northeast Ohio Public Energy Council, Ohio Hospital Association, Ohio Partners for Affordable Energy, and the Kroger Co.