PUCO grants fuel recovery for FirstEnergy

COLUMBUS, OHIO (Jan. 14, 2009) – The Public Utilities Commission of Ohio (PUCO) today approved FirstEnergy’s application to recover fuel and associated purchased power costs subject to a prudency review by the Commission. This will continue to stabilize electric rates for all FirstEnergy customers.

FirstEnergy will recover the difference in costs incurred for purchasing power and the revenue the company is collecting through its generation rate plus the rate stabilization charge.

In a separate proceeding, the Commission directed FirstEnergy to file tariffs by Jan. 15, 2009 that are consistent with the Commission’s Jan. 7, 2009 finding and order. That Commission finding and order modified the tariffs filed by FirstEnergy on Dec. 22, 2008 to terminate the regulatory transition charges (RTC) for Ohio Edison and Toledo Edison as the company’s rate certainty plan (RCP) set an end date of Dec. 31, 2008 for these charges. RTC for Cleveland Electric Illuminating is scheduled to continue through Dec. 31, 2010 as outlined in the RCP.

On July 31, 2008, FirstEnergy filed an application for an electric security plan (ESP) and a market rate offer (MRO). On Nov. 25, 2008, the Commission denied FirstEnergy’s application to establish a MRO. On Dec. 19, 2008, the Commission modified and adopted an ESP for FirstEnergy. On Dec. 22, 2008, FirstEnergy filed notice with the Commission that they were withdrawing and terminating their ESP application. The company also filed proposed tariffs.

On Jan. 7, 2009, the Commission modified and adopted tariffs for FirstEnergy, in accordance with Senate Bill 221, that reflect FirstEnergy’s most recent standard service offer as outlined in the company’s RCP approved by the Commission in January 2006. On Jan. 9, 2009, FirstEnergy filed a motion requesting a stay on the tariff filing requirement. FirstEnergy also filed an application requesting approval to recover fuel costs. That same day, a PUCO attorney examiner granted FirstEnergy’s request to extend the filing date of the tariffs to give the Commission time to address the issues raised by the company.

On May 1, 2008, Gov. Ted Strickland signed SB 221 into law, marking the one year anniversary of the date he outlined his Energy, Jobs, and Progress Plan to stabilize electricity prices, create jobs, and expand Ohio’s green energy industry. SB 221 became effective on July 31, 2008 and incorporates a system under which rates would be set by the PUCO and outlines a path for electric utilities to implement market-based pricing.

FirstEnergy must file tariffs consistent with today’s Commission finding and order and subsequent entry by Jan. 15, 2009. The tariffs will take effect on Jan. 1, 2009 on a services rendered basis. Copies of today’s Commission decisions are available at www.PUCO.ohio.gov. Click on the link to the Docketing Information System (DIS) and enter case number 09-21-EL-ATA for the fuel cost recovery finding and order or 08-935-EL-SSO for the tariff entry.

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