FirstEnergy Corp.'s (NYSE: FE) Ohio electric companies – Ohio Edison, The Illuminating Company and Toledo Edison – have filed a proposed Electric Security Plan (ESP) with the Public Utilities Commission of Ohio (PUCO) that supports their commitment to investing in and maintaining the electric grid while providing customer assistance programs and energy efficiency initiatives that help customers manage and control their electric bills.
Utilities in Ohio are required to file plans to establish electric service for their customers, and this proposal is FirstEnergy's sixth ESP (ESP6).
Torrence Hinton, FirstEnergy's Ohio President: "We believe this plan supports our Ohio electric companies' ongoing investments in the electric system in a cost-conscious manner for our customers. We're committed to making the right investments to ensure a modern, more reliable grid, and we will continue working with interested stakeholders to ensure an open and thorough review of our proposal."
ESP6 preserves the ability for customers to select their own energy supplier and maintains an auction process to determine the pricing and supply of electricity for customers who rely on their company for all aspects of their electric service. The plan also retains recent enhancements to the auction process aimed at boosting participation by energy suppliers – which will help keep bills as low as possible for customers who don't shop.
The companies propose that the ESP6 term would begin upon the approval of new base rates and extend through May 31, 2028. ESP6 supports additional investments in the electric system, including grid modernization, maintenance such as storm restoration work and increased tree trimming, energy efficiency programs and bill assistance measures that aim to keep customers' needs and expectations top of mind. The plan includes:
- Provisions to enable the companies' continued maintenance of the distribution grid, including an enhanced tree-trimming program to accelerate the removal of trees and brush, which are a leading contributor to outages during major weather events.
- Energy efficiency programs for residential customers, including a smart thermostat rebate program and a low-income energy efficiency program, to help them save energy, reduce their bills and ease their environmental impact, as well as continuing the companies' demand response program for commercial and industrial customers.
- Commitment to spend $6.5 million each year of the ESP, without recovery from customers, on initiatives to assist customers and enhance the customer experience, including low-income and senior citizen bill payment assistance programs.
If ESP6 is approved, the average FirstEnergy Ohio residential customer using 750 kilowatt-hours of electricity per month could expect to see an initial increase of approximately $3.40, or 2.7%, on their electric bill. Over the term of the plan, the estimated average impact on these customers' bills is an increase of 1.7%.
