FirstEnergy Ohio Utilities Obtain Approval to Extend Successful Electric Rate Plan
FirstEnergy Corp.'s (NYSE: FE) Ohio utilities announced that the Public Utilities Commission of Ohio approved their proposed Electric Security Plan (ESP). Today's ruling allows the FirstEnergy Ohio utilities – Ohio Edison, Cleveland Electric Illuminating and Toledo Edison – to essentially extend their current ESP for two additional years and establish electricity prices for their customers through May 31, 2016.
The current ESP is widely considered a success and has resulted in price certainty and more than $10 million in annual economic development funding for Ohio communities and low-income assistance to utility customers. Extending the plan by an additional two years allows the FirstEnergy Ohio utilities to conduct additional power auctions to secure generation supply over a longer duration of time for customers who do not shop for a competitive supplier. This should help to shield customers from potential price volatility by blending energy and capacity prices over the term of the plan.
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