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PUCO to Gradually Eliminate Competitively Neutral All-Electric Credits at FirstEnergy Companies
May 26, 2011
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The Public Utilities Commission of Ohio established an eight-year transition to end the current nonbypassable Residential Generation Credit (Rider RGC) at the FirstEnergy Ohio utilities, which provides a discount to certain electric heating (all-electric) customers.
For the first two years, the level of the discount provided under Rider RGC, which is available to both bundled and shopping customers, will remain frozen (although the actual volumetric rate credit may change annually depending on changes in generation rates).
Following this two year freeze, the FirstEnergy companies shall phase out Rider RGC from its March 31, 2013, level by implementing six equal annual reductions, effective October 31 of each year.
Revenues shortfalls resulting from the credits under Rider RGC shall be recovered from residential customers only, on a nonbypassable basis.
Additionally, PUCO did not modify the credits available to certain residential all-electric customers under Rider EDR (Economic Development Rider) and Rider RDC (Residential Distribution Credit). Rider RDC is available to all qualifying residential distribution customers regardless of their source of generation; however, Rider EDR is bypassable, and only available to customers taking generation from the utility.
PUCO dismissed allegations from various consumer groups that the FirstEnergy companies had marketed the all-electric discount as not expiring, finding that the Commission lacked jurisdiction over such utility marketing claims, and even if it did not, that consumer groups had not established that a contract exists, or has ever existed, between electric heating customers and the companies.
The case is 10-176-EL-ATA.
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