Ohio PUC Reinstates Requirement For FirstEnergy Utilities To File Rate Case By End Of ESP IV

The Public Utilities Commission of Ohio has reinstated the requirement that Ohio Edison Company, The Cleveland Electric Illuminating Company and The Toledo Edison Company (the FirstEnergy Ohio utilities) shall file a distribution rate case by May 31, 2024.

The rate case may potentially serve as a forum to address the allocation of costs between delivery rates and default service

PUCO had previously required the FirstEnergy EDCs to file a rate case by such date, as part of adopting the EDCs' electric security plan (ESP) IV, which ends on May 31, 2024. However, after the distribution modernization rider (DMR) was struck from the ESP by the Ohio Supreme Court, PUCO in a subsequent order held that it was no longer necessary or appropriate for the EDCs to be required to file a new distribution rate case at the conclusion of the current ESP

In denying a motion to vacate orders related to the DMR filed by the Environmental Law and Policy Center, PUCO reinstated the requirement to file a rate case

In opposing the Environmental Law and Policy Center's motion to vacate, the FirstEnergy EDCs had said that they would not oppose if the Commission reverses that decision and requires the companies to file a base distribution rate case at the end of the current ESP.

PUCO stated, "We have noted that, while the Commission is aware of reports containing allegations against FirstEnergy Corp. regarding its conduct in the passage of Am. Sub. H.B. 6 and the subsequent referendum, we are determined to act in a deliberate manner, based upon facts rather than speculation, and with due consideration to the limits on our statutory authority over FirstEnergy Corp. and over the political and charitable activity of all public utilities in this state ... However, we also note that it is the policy of this state to ensure the availability to consumers of adequate, reliable, safe, efficient, nondiscriminatory, and reasonably priced retail electric service. A distribution rate case will ensure a thorough review of the Companies’ rates and service. Therefore, given the unique circumstances at this time and in the interests of both transparency and state policy, we find it necessary and appropriate to revisit our prior decision and reinstate the requirement that the Companies file a distribution rate case by May 31, 2024, the end of ESP IV. Moreover, this decision will not unduly prejudice FirstEnergy given the Companies’ representation that they will not oppose the reinstatement of this requirement."

Case 19-361-EL-RDR