FirstEnergy’s Ohio electric companies said Thursday they plan to file their first three-year rate plan with state regulators by May 22, a move that could reshape how Ohio Edison customers see distribution costs on monthly bills. The filing would cover The Illuminating Company, Ohio Edison and Toledo Edison under a new state law that lets utilities set distribution rates with a forward-looking plan.
The plan would average $800 million a year for neighborhood poles, wires, equipment, facilities and technology, plus another $83 million annually for tree trimming near power lines. It also would keep existing assistance programs in place, add new help for low-income customers and continue a program that helps income-eligible households use energy more efficiently and lower monthly bills. Large customers would also be asked to work with the utility to reduce electricity use during periods of highest demand.
Torrence Hinton said the proposal is meant to balance reliability and cost. “Our TYRP is about careful and balanced planning,” he said, adding that the company is focused on upgrading the electric system customers rely on every day and knows affordability matters. He also said recent upgrades showed what works best and that the three-year plan is being built around the work likely to make the biggest difference while keeping costs in check and clearly showing customers what they are paying for.
The plan matters because it changes the way rates are reviewed. Electric rates were previously based on costs already spent, but Ohio legislation now allows utilities to use a three-year framework that the Public Utilities Commission of Ohio will review and update each year. FirstEnergy said the new approach should give customers a clearer view of planned work and how it affects bills, though it will affect only the distribution portion of the bill and not the cost of electricity supply, which is set by third-party suppliers.
For a typical non-shopping residential customer using about 1,000 kilowatt-hours a month, the company expects only a modest average monthly change over the three-year period. Ohio Edison is projected to see an average annual increase of 2.2%, or about $4.26 a month each year. The Illuminating Company is expected to rise 2.6%, or $5.15 a month, while Toledo Edison is expected to increase 2.8%, or $5.30 a month.
If the Public Utilities Commission of Ohio approves the plan, FirstEnergy said its Ohio residential monthly bill is estimated to grow more slowly on an average annual basis through 2030 than the 10-year average U.S. inflation rate of 3.3%. The filing is due by May 22, and the commission will review the proposal before any changes take effect. For now, the company is betting that better wires, more trimming and clearer billing will be enough to make a rate increase feel like a tradeoff, not a shock.
