First Energy Fined $250 Million, Refunds Ordered to Customers
Following a long hearing, the Public Utility Commission of Ohio issued over $250 million in fines to First Energy. The penalty comes after the infamous HB6 scandal that has dogged First Energy for nearly 6 years. As a result, customers may see refunds on their bills from the energy giant. But will it be enough for the company to earn back consumer trust?
How Much Are Customers Owed?
To start, PUCO ruled that First Energy wrongly set up a lobbying fund using customer payments. It also found that triple damages were justified. As a result, First Energy must pay about $180 million back to consumers. PUCO also ordered the company return $6.64 million plus interest that it collected from customers through wrongly classed costs. All in all, the refunds will go out over three billing cycles, starting with the December and ending in February.
How Much Will You Get?
In this case, First Energy customers will not get a check from the company. Instead, they will see a credit on their energy bills. To that end, the credits from Ohio Edison, The Illuminating Company, and Toledo Edison will average about $30 per month. So, customers may see $90 in total refunded credits on their bills.
Will CRES Customers Get Refunds?
Customers who switched to third party electric suppliers will also get the credit. Basically, First Energy’s three utilities deliver power to all their customers no matter who supplies their energy. For that reason, customers pay for this as a distribution charge on their monthly bill. Due to Ohio law, PUCO must approve the the utility’s reasons for these charges.
But PUCO found First Energy wrongly used a distribution rider charge to pay for a $60 million lobbying fund. Factor in the triple damages, and this is where the $180 million for customer refunds comes from. Basically, if a First Energy utility delivers power to your home, you will be receiving a credit.
Small Change For A Big Breach Of Customer Trust
It’s not surprising that Ohio consumers take a black view of the company. So far, First Energy has paid over $230 million in federal civil penalties. The company will also pay an additional $23.36 million fine unrelated to HB6. But the company’s trials are far from over. PUCO plans a hearing on whether the company used money from ratepayers for any political spending.
First Energy will end up paying hundreds of millions of dollars in fines for years. But, the stain on the company from HB6 runs long and deep, too. So, it’s unlikely to help customers rinse out its effluent-like taste any time soon.