FirstEnergy Ohio Utilities File 'Settlement' in Electric Security Plan Case Seeking Ratepayer Support for Affiliate FES Plants

The FirstEnergy Ohio utilities have filed what they termed in a news release a "settlement" in their electric security plan proceeding which would set default service procurement for the period, but has become most notable for FirstEnergy's sought provision that would require ratepayer support for various FirstEnergy Solutions generating plants (with output sold into the market and not used to serve SSO load).

Signing the stipulation were the FirstEnergy utilities, Ohio Power (which is seeking similar treatment of PPAs), Ohio Energy Group, Nucor Steel Marion, and certain other local agencies.

Parties not signing the stipulation include PUCO Staff, the Ohio Consumers' Counsel, Industrial Energy Users-Ohio, and competitive generators and retail suppliers.

The stipulation would approve the sought FirstEnergy Solutions long-term PPAs as filed (click here for background), with modifications to the Retail Rate Stability Rider rate design (to recover PPA costs) for Rate GS, GP, GSU and GT customers, such that those classes' costs are recovered based on demand, not usage.

Notable provisions of the stipulation include:

• The default service Generation Cost Reconciliation Rider (Rider GCR) shall be recovered via a bypassable charge unless the Rider balance exceeds 10% of the applicable generation expense in two consecutive quarters. Currently, the Rider becomes nonbypassable if the deferral balance exceeds 5% for a given calculation period.

• The utilities will continue to offer the Economic Load Response Program Rider (Rider ELR), which would have otherwise expired, but the program will now be open to shopping customers as well as those taking supply from the utilities. Participation is limited to customers who are currently taking service under Rider ELR plus up to 75,000 kW of additional Curtailable Load from customers who have historically been eligible for Rider ELR but are not currently taking service under Rider ELR.

• The utilities will continue to offer the Generation Service Rider Time-Of-Day Option

• The utilities will continue to offer the Economic Development Rider – Automaker Credit Provision (Rider EDR (h)). The discount will be limited to $0.01 per kWh for kWh usage exceeding the automakers' Baseline Usage. The Economic Development Rider - Automaker Charge Provision (Rider EDR (i)) will continue as well.

• In order to transition more gradually to market based pricing customers taking service on the utilities' General Service - Transmission tariff (Rate GT), the Economic Development Rider – General Service – Transmission (Rate GT) Provision (Rider EDR (d)) will be modified from the ESP IV application to more gradually phase down the provision. The charge for June 1, 2016 through May 31, 2017 will remain at $8.00 per kVa of billing demand and will reduce by $2.00 per year in each of the subsequent years of the ESP IV.