FirstEnergy Corp.'s Ohio electric companies, including Ohio Edison, The Illuminating Company, and Toledo Edison, have submitted a request to the Public Utilities Commission of Ohio (PUCO) to withdraw their current Electric Security Plan (ESP) 5. This plan has been in effect since June 1. If approved by PUCO, the companies will revert to their previous ESP4 plan, which was active until May 31, 2024.
The ESP4 framework provided customers with reliable and affordable power for eight years. Returning to this plan is intended to address uncertainties that arose with ESP5. These issues were expected to be resolved through a rehearing process that was halted by a recent Ohio Supreme Court decision unrelated to the ESP. FirstEnergy's ESP4 would remain effective until a new plan is filed and approved.
Torrence Hinton, President of FirstEnergy's Ohio operations, stated: "We believe there is an opportunity to design a new plan that supports our Ohio electric companies' ongoing investments in the electric system while continuing to maintain affordable rates for customers. We look forward to working with stakeholders to ensure we have a plan in place that supports the needs of customers and communities – including low-income customers – and delivers the reliable, affordable power our customers expect."
Ohio utilities are required to file Electric Security Plans for non-shopping customers. FirstEnergy's ESP4 includes an auction process for pricing and supply determination while allowing customers the option of choosing their energy supplier. Reverting back would also restore about $6 million annually in nonrecoverable spending on energy efficiency programs as well as economic development funding and bill payment assistance.
In returning to ESP4, FirstEnergy plans some modifications from the previously approved version. Proposed changes include enhancements introduced under ESP5 aimed at ensuring competitively priced electricity by increasing supplier participation through risk mitigation measures. These proposals are subject to PUCO approval.
Reverting back could result in approximately $2 savings per month for typical residential non-shopping customers using around 750-kilowatt hours (kWh).
Ohio Edison serves over one million people across 34 counties; The Illuminating Company caters to approximately 755,000 clients across several counties; Toledo Edison serves more than 315,000 individuals in northwest Ohio.
FirstEnergy operates one of America's largest investor-owned electric systems spanning multiple states with extensive transmission lines connecting Midwest-Mid-Atlantic regions.