Lower Rates Coming To FirstEnergy Customers
Many FirstEnergy customers in Ohio struggled with rising energy bills last year. Thankfully, cheaper prices are around the corner. Recently, the PUCO slapped down a FirstEnergy request to raise electricity rates. Instead, it cut the company’s $190 million income request and told it update its base rates. There’s a lot to unpack so let’s see how FirstEnergy customers may see lower rates this coming year.
Why FirstEnergy Rates Will Lower
Earlier this year, FirstEnergy requested a $190 million rate hike. The company explained it was to recover money spent on grid upgrades and raise income. But, the company’s role in the HB6 scandal did not help its rate request. In fact, PUCO had already ordered FirstEnergy to pay fines and refund $180 million to its customers.
Basically, the case boiled down to how much income FirstEnergy made from rates. PUCO found that Ohio Edison and Toledo Edison distribution rates and charges exceeded what was just and reasonable. Instead, PUCO only granted FirstEnergy $34 million per year income raise. Both Ohio Edison and Toledo Edison would need to cut their rates in order to cut their yearly income. However, this past summer, the Illuminating Company struggled with numerous outages. For this reason, PUCO agreed that northeast Ohio needs more upgrades to its grid. As a result, it allowed that utility to raise its rates.
According to the Ohio Consumers’ Counsel, an average 1000 kWh monthly bill would look like:
- Ohio Edison drops from $170.23 to $167.80
- Toledo Edison rates drop from $173.30 to $164.21
- Illuminating Company bill rises from $173.61 to $178.35
So, on balance, most FirstEnergy customer bills may fall by $3-$9 during the coming year.
Saving On Electricity
The PUCO ruling is great news for FirstEnergy customers this coming year. In addition to refunds, they may see their bills drop by a few dollars this year. And with energy prices rising, that’s a good thing.
All the same, however, that’s not the only way to save on Ohio electricity. The best way is to shop for deals from the best electric supplier. And the place to compare plans in Ohio is right here at https://www.ohenergyratings.com. We’re also your source for news and tips that could affect your bills.