Northeast Ohio Public Energy Council to provide electric settlement refunds

Consumer advocacy by the Ohio Consumers’ Counsel and the Northeast Ohio Public Energy Council led to a historic settlement at the Public Utilities Commission of Ohio, resulting in FirstEnergy refunding $306 million in “significantly excessive” profits to 2.1 million customers.

The first refund installments, averaging $26.91 for residential customers, appear as bill credits on this month’s Cleveland Electric Illuminating, Ohio Edison and Toledo Edison bills.

Non-residential customers received $2.68 per mWh. The remainder of the refund will be paid out to customers as credits on their electric bills over the next five years. The average FirstEnergy residential customer will receive a total of $85.71 paid in installments as follows:

• $1.87 per month ($22.44 annually) per consumer (for $80 million in total will be credited in 2022, through a monthly bill credit)

• $1.40 per month ($16.80 annually) per consumer (for $60 million in total will be credited in 2023, through a monthly bill credit)

• $1.05 per month ($12.60 annually) per consumer (for $45 million in total will be credited in 2024, through a monthly bill credit)

• $0.58 per month ($6.96 annually) per consumer (for $25 million in total will be credited in 2025, through a monthly bill credit)

The settlement involves profits cases under a 2008 utility ratemaking law known as Senate Bill 221, which requires refunds of charges for “significantly excessive” utility profits.

About a decade ago, AEP Ohio refunded the most money any electric utility was required to refund to consumers for “significantly excessive” profits at $43 million. The 2008 law limits electric utility refunds to “significantly excessive” profits and allows electric utilities to keep excessive profits. ∞