FirstEnergy Ohio Utilities File Settlement Agreement in Electric Security Plan

FirstEnergy Corp.'s

Ohio utilities today filed a joint stipulation agreement demonstrating broad support for Powering Ohio's Progress, their proposed Electric Security Plan (ESP) currently pending before the Public Utilities Commission of Ohio. The proposed stipulation reflects the diverse interests and concerns of 15 signatories, including parties that represent residential, commercial, industrial and low-income customers, as well as organized labor and schools. The agreement supports FirstEnergy's proposed ESP that outlines plans for its Ohio utilities – Ohio Edison, Cleveland Electric Illuminating and Toledo Edison – to provide electric service to customers for a three-year period from June 1, 2016 through May 31, 2019. Parties to the settlement include the City of Akron, Ohio Energy Group, Council of Smaller Enterprises, Cleveland Housing Network, Consumer Protection Association, Council for Economic Opportunities in Greater Cleveland, Citizens Coalition, Nucor Steel Marion, Material Sciences Corporation, Association of Independent Colleges and Universities in Ohio, International Brotherhood of Electrical Workers Local 245, Ohio Power Company and FirstEnergy's three Ohio utilities. Powering Ohio's Progress has also received widespread support from organizations throughout the state that represent the interests of more than one million Ohioans. More than 1,100 letters of support have already been docketed in the case, and 15 local communities have passed resolutions endorsing the plan. "The proposed settlement reflects broad support for our ongoing efforts to keep electric rates affordable for businesses and consumers in Ohio," said Leila Vespoli, Executive Vice President, Markets and Chief Legal Officer at FirstEnergy. "Our ESP will help assure reliable electric service and protect jobs by keeping vital baseload power plants available to serve Ohio customers. It will also help safeguard customers from rising retail prices from expected energy and capacity price increases in future years." Under Powering Ohio's Progress, customers will continue to receive additional benefits and savings opportunities in the years ahead. The plan includes a 15-year Economic Stability Program that supports the state's economic future by helping ensure that critical baseload power plants remain available to serve electric customers. Additional benefits include: Freezing base distribution rates through May 31, 2019. Since 2009, residential customers' distribution rates have increased an average of only 40 cents per month, or 1 percent, based on typical usage of 750 kilowatt-hours per month. Preserving $1 billion in annual statewide economic benefits, more than $52 million annually in local and state property and payroll taxes, and an estimated 3,000 direct and indirect jobs created by operations at the Davis-Besse, W.H. Sammis and Ohio Valley Corporation (OVEC) power plants in Ohio. Contributing up to $23 million in economic development funding and energy efficiency assistance for Ohio communities, colleges and universities, small businesses, and low-income customers during the three-year term of the plan. Contributing up to $7 million to help low-income customers pay their electric bills and to fund the establishment of an independent Customer Advisory Agency designed to preserve and grow the competitive retail electric market for all FirstEnergy residential customers in Ohio. Helping ensure key baseload electric generation remains available to serve Ohio customers and power Ohio's economy. Continuing to provide generation supply to non-shopping customers through a competitive bid process. Retaining customers' option to shop for a competitive electric supplier. Supporting continued investment in distribution system reliability. FirstEnergy is a diversified energy company dedicated to safety, reliability and operational excellence. Its 10 electric distribution companies form one of the nation's largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. Follow FirstEnergy on Twitter @FirstEnergyCorp.