PUCO approves limited term electric security plan for FirstEnergy

COLUMBUS, OHIO (March 4, 2009) – The Public Utilities Commission of Ohio (PUCO) today approved a limited term electric security plan (ESP) for FirstEnergy. The plan is part of a supplemental agreement reached by the parties in the case last month.

“I commend the parties for their hard work in arriving at an agreement in this case,” PUCO Chairman Alan R. Schriber stated. “This limited term ESP will provide stable and predictable rates for FirstEnergy’s customers.”

Under the limited term ESP, FirstEnergy will provide electric generation service to its customers at the rate of $0.06987 per kilowatt hour through May 31, 2009. The company will obtain any needed power from FirstEnergy Solutions Corp. during this time period.

The limited term ESP allows FirstEnergy to continue to defer purchased power costs for Cleveland Electric Illuminating through May 2009. The parties agreed in the stipulation that the process used by FirstEnergy was not imprudent.

On July 31, 2008, FirstEnergy filed an application for an 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 it was withdrawing and terminating its ESP application. On Jan. 14, the Commission approved FirstEnergy’s application to recover purchased power costs subject to a prudency review by the Commission.

On Feb. 19, 2009, FirstEnergy filed an amended electric security plan application with an attached stipulation and recommendation. An evidentiary hearing took place on Feb. 25, 2009 addressing the limited term ESP. On Feb. 26, 2009, the parties submitted a supplemental stipulation.

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.

A copy of today’s Commission second finding and order is available at www.PUCO.ohio.gov. Click on the link to the Docketing Information System (DIS) and enter the case number 08-935-EL-SSO.

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