First Energy $275 Million Customer Relief
It’s been quite some time since news first broke about the HB6 corruption scandal. After a lengthy hearing before PUCO, First Energy has worked out an agreement to repay customers for its role in the HB6 scandal. But how will this money be repaid and what can you expect? Here’s what you need to know about the First Energy $275 million settlement.
First Energy Settlement Details
Last month, PUCO ordered First Energy to refund customers $250 million for its actions during the HB6 scandal. So, to end to close the matter, the utility made a settlement with the Office of the Ohio Consumers’ Counsel (OCC) and 12 other parties. The agreement includes:
- FirstEnergy must repay $275 million to customers. This includes $250 million in bill credits in 2026 as well as $25 million in additional penalties.
- This also includes $25 million in additional penalties. About $20 million of this chunk will go to low income bill payment help and energy saving programs.
This agreement affects all First Energy Ohio customers, including those who shop for the best electric supplier. But while the settlement closes the door on the four related cases before PUCO, the HB6 matter is not over. The utility still faces charges that it illegally used customers’ payments for for political or charitable purposes.
Is Settlement Enough for Ohio Customers
This settlement includes one of the largest penalties in US history. PUCO also cut First Energy’s ask for $183 million in profits to just $34 million. In fact, the OCC pushed for $132 million in rate cuts to lower the company’s rate of return. Yet, despite this, PUCO also granted a rate increase to First Energy’s Illuminating Company which saw numerous outages last summer.
On top of this, FirstEnergy announced that it would file their next rate case early this year. So Ohioans may still see their distribution rates rise further and sooner.
What First Energy Customers Do Next?
Bill credits are a welcome relief for First Energy customers facing rising electricity rates. Nevertheless, utilities are spending more and more on expanding their grids to cover rising demand. So bills will keep rising. But smart energy shoppers can do a lot to cut their costs to stay ahead of those increases.
The best way is to shop for the best energy deals in town, right here at https://www.ohenergyratings.com. You can also count on us for news and tips that could affect your bills.