Could Fine Proceeds Go To Customers?
Frequent power outages have hit Lakewood energy customers for the past two years. PUCO investigated the issue and found that First Energy failed to meet obligations to their customers. As a result, PUCO is seeking a $3 million fine against the utility for the Lakewood blackouts. Now some customers and others argue they bore the cost of the blackouts, not the state, and they deserve to be paid. But Ohio law doesn’t work that way. So, will Lakewood consumers get anything from a FirstEnergy fine for the these Cleveland outages?
Why Fine First Energy?
When PUCO reviewed this summer’s black outs and found that lasted much longer than normal. On top of that, they that FirstEnergy crews had used lawn sprinklers to cool overheating transformers.
For this reason, PUCO proposed a $3 million fine on FirstEnergy for the repeated outages.
How Fine Affects Customer Bills
According to Ohio law, any fine FirstEnergy may pay goes to the State of Ohio’s General Fund. In effect, this means that none of the money will go to customers. However, PUCO could change that in its ruling.
As you can guess, this isn’t a popular decision. Critics argue that while the decision punishes First Energy it abandons families and businesses that suffered from the frequent outages. As a result, the OCC is seeking bill credits or some other pay-back scheme. Meanwhile, state representative Tristan Rader has proposed utility reform to include automatic bill credits after long outages.
Could Fine Improve Lakewood Grid?
Lakewood City Council member Tom Bullock publicly asked First Energy CEO Brian Tierney about his town’s power failures. Tierney answered the town’s electrical systems are old and need replacing. In fact, wires used in the area were only state of the art between 1910 and 1950! Replacing them could cost hundreds of millions of dollars and require up to 9 years of work!
For this reason, First Energy argues that the money should be used to fund local upgrades. While this makes sense to some, critics point out that PUCO granted FirstEnergy a return on its investment for repairing and upgrading its grid. So where did all that money go?
What Lakewood Customers Can Do Today?
As of August 26, PUCO has yet to make a decision regarding the fine. So, unless PUCO changes its mind when it rules, customers won’t see a dime of it. We’ll keep an eye on this Ohio energy story and will report any updates as they come to light.
In the meantime, you can shop for the best electricity rates in town right here at https://www.ohenergyratings.com. You can also count on us for tips and news that could affect your bills.