Cleveland-area households could be in for a jolt. FirstEnergy’s Ohio electric companies have put a three-year distribution rate plan on the table that could raise the distribution portion of residential bills, potentially adding roughly $100 next year and about $180 a year within three years for a typical home. The proposal, covering The Illuminating Company, Ohio Edison and Toledo Edison, would phase in higher distribution charges beginning in 2027. FirstEnergy says the extra cash would go into storm preparation, more aggressive tree trimming and swapping out aging equipment to cut down on power outages.
As reported by Cleveland.com, the company’s projection that a typical customer could be paying nearly $180 more in three years assumes a household that uses about 750 kilowatt-hours a month. The Office of the Ohio Consumers’ Counsel argues that 1,000 kilowatt-hours is a more realistic benchmark for many Ohio homes. That gap matters, consumer advocates say, because a lower usage baseline can make the projected hit to many customers’ wallets look smaller than it will feel in real life for heavier users.
What the company is asking for
According to FirstEnergy, the plan would average about $800 million a year for upgrades to neighborhood poles, wires and other equipment, plus roughly $83 million a year for expanded tree trimming around lines. The utility says locking in a three-year framework helps smooth out customer bill changes and lets it target spending on reliability. It estimates average annual distribution increases of about 2 to 3 percent for a non-shopping residential customer who uses around 1,000 kilowatt-hours a month. The filing also stresses that this proposal touches only the distribution section of the bill, while electricity supply prices are set separately by third-party suppliers.
How regulators will review it
The plan arrives under the new ratemaking rules created by Ohio’s House Bill 15, which set up an option for three-year rate plans and sped up review timelines. As laid out in FirstEnergy’s recent regulatory filings, the company expects the Public Utilities Commission of Ohio process to move faster than a traditional base-rate case, with a final order generally due within about 360 days after the application is complete. PUCO staff will dig into the evidence, and the case docket will include formal windows for public comment and for outside parties to step in and challenge or support the plan.
Who’s pushing back
Consumer advocates and major power users are already lining up. Cleveland.com reports that the Ohio Consumers’ Counsel is closely examining the company’s math, while industrial players including Nucor and the Ohio Energy Leadership Council have filed to intervene. They argue that FirstEnergy will need to prove that the size and cost of its proposed tree-trimming program and storm-readiness work are justified before customers are asked to foot the bill…