Does FirstEnergy Deserve Rate Hikes?
FirstEnergy customers have dealt with a lot of problems. The utility has failed to keep the power flowing for the past four months. The company has yet to face any penalties for their role in the HB6 bribery scandal. Despite all this, they still want to raise electric rates for their customers. But what has FirstEnergy done? Have they tried to make things right? More importantly, do they deserve millions of dollars in rate increase?
How Much Money Does FirstEnergy Want?
FirstEnergy recently filed a request to raise their income by $190 million. If approved, this rate hike would increase distribution charges for the company’s three Ohio utilities. The OCC estimate that Illuminating Company customers would see their bills spike by about $13 a month. Ohio Edison bills would jump by $3 a month, and Toledo Edison bills would see a $1.50 rise.
FirstEnergy Blackouts And Scandal
The utility claims their current distribution rates are not enough cover the costs to repair and upgrade their grid. But, both customers and lawmakers don’t believe FirstEnergy’s claims.
First of all, the utility’s rate filing came after towns in northeast Ohio saw 13 blackouts from May to August. Several cities saw several hot days without AC. Plus, local grocery stores and eateries lost food when their fridges failed. As a result, local mayors formally asked PUCO to investigate. That process is now underway.
On top of this, the utility is in the middle of hearings before PUCO for its part in the HB6 corruption scandal. The bribery scheme reportedly defrauded Ohio customers of $1.3 billion. In June, FirstEnergy presented three of its four evidentiary cases. PUCO will likely hear the final fourth one next year.
While the rate hike review will likely take over a year, it could reveal new details. Since the utility has yet to face any penalties from PUCO in this case, lawmakers promise to scrutinize the rate request closely.
AES Ohio And CenterPoint Rate Increases
In the meantime, FirstEnergy is not alone in rate hike filings. Both AES Ohio and CenterPoint also requested rate increases.
CenterPoint Energy wants to raise rates by about $12 per month for the average utility bill. Meanwhile, AES Ohio seeks to raise rates by a staggering $22 per month on the average bill. If accepted as is, these increases would raise profits by millions of dollars for each company.
After Scandal Hearings, Will FirstEnergy Rates Rise?
While it’s too early to know if FirstEnergy’s rate hike will go through. But if it does, customers of all three of their utilities will pay it in their distribution charges. However, you can help offset these rate increases by locking in the cheapest rates in town.
That’s why you should shop for electricity deals at https://www.ohenergyratings.com. We’ll also keep you up to date on the news that could affect your bills.