FirstEnergy Ohio Electric Companies File Sixth Electric Security Plan to Support Continued Reliability Investments and New Customer Programs

Rhea-AI Summary

FirstEnergy Corp. (NYSE: FE) has filed its sixth Electric Security Plan (ESP6) with the Public Utilities Commission of Ohio for its Ohio electric companies. The plan, extending through May 31, 2028, focuses on grid maintenance, customer assistance, and energy efficiency initiatives.

Key components include enhanced tree-trimming programs, smart thermostat rebates, and low-income energy efficiency programs. The company commits to spending $6.5 million annually on customer assistance initiatives without recovery from customers. The plan maintains customer choice in energy suppliers and auction processes for electricity pricing.

If approved, average residential customers using 750 kilowatt-hours monthly would see an initial 2.7% increase ($3.40) on their bills, with an estimated average impact of 1.7% increase over the plan's term. The proposal affects Ohio Edison's 1 million customers, The Illuminating Company's 750,000 customers, and Toledo Edison's 315,000 customers.

Positive

• Commitment to invest $6.5 million annually in customer assistance programs without cost recovery from customers
• Implementation of energy efficiency programs including smart thermostat rebates
• Enhanced grid maintenance and reliability improvements

Negative

• 2.7% initial bill increase for average residential customers
• 1.7% average bill increase over the plan's term

News Market Reaction

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+0.50% News Effect

On the day this news was published, FE gained 0.50%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Proposal includes programs aimed at helping customers better manage their electric bills

AKRON, Ohio, Jan. 31, 2025 /PRNewswire/ -- 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%.

Ohio Edison serves more than 1 million customers across 34 Ohio counties. Follow Ohio Edison on X @OhioEdison and on Facebook at facebook.com/OhioEdison.

The Illuminating Company serves more than 750,000 customers across Ashtabula, Cuyahoga, Geauga, Lake and Lorain counties. Follow The Illuminating Company on X @IlluminatingCo and on Facebook at facebook.com/IlluminatingCo.

Toledo Edison serves nearly 315,000 customers in northwest Ohio. Follow Toledo Edison on X @ToledoEdison or on Facebook at facebook.com/ToledoEdison.

FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation's largest investor-owned electric systems, serving more than six million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate more than 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at firstenergycorp.com and on X @FirstEnergyCorp.

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SOURCE FirstEnergy Corp.

FAQ

How much will FirstEnergy's (FE) ESP6 increase customer bills in Ohio?

The ESP6 will initially increase bills by $3.40 (2.7%) for average residential customers using 750 kilowatt-hours monthly, with an average increase of 1.7% over the plan's term.

What customer assistance programs are included in FirstEnergy's (FE) ESP6?

The ESP6 includes $6.5 million annual spending on customer assistance programs, smart thermostat rebates, low-income energy efficiency programs, and senior citizen bill payment assistance.

When will FirstEnergy's (FE) ESP6 plan expire?

The ESP6 plan will extend through May 31, 2028, beginning upon the approval of new base rates.

How many customers will be affected by FirstEnergy's (FE) ESP6 in Ohio?

The ESP6 will affect approximately 2.065 million customers across FirstEnergy's Ohio utilities: 1 million Ohio Edison customers, 750,000 Illuminating Company customers, and 315,000 Toledo Edison customers.

What grid improvements are included in FirstEnergy's (FE) ESP6?

The ESP6 includes enhanced tree-trimming programs, grid modernization initiatives, and maintenance work including storm restoration improvements.