For Immediate Release
Contact: Matt Schilling
(614) 466 7750
COLUMBUS, OHIO (June 20, 2013) – The Public Utilities Commission of Ohio (PUCO) today confirmed the execution of FirstEnergy’s transaction to securitize deferred costs resulting in a savings of approximately $106 million to the company’s customers.
Through the Commission’s order on October 10, 2012, FirstEnergy was able to securitize approximately $445 million in deferred costs, with the final customer savings exceeding the original projections. This was the first use of the recently enacted Securitization Act created by House Bill 364 (HB 364).
“The final outcome of our order is a clear win for all parties,” PUCO Chairman Todd A. Snitchler stated. “It was the Commission’s goal in driving this legislation that these transactions would result in benefits for both the ratepayers in Ohio and the utilities.”
HB 364 allows Ohio’s electric distribution utilities to issue low-interest; long-term bonds to replace certain types of deferred costs that otherwise would have higher carrying costs, resulting in savings for ratepayers.
A new Phase-in Recover Rider (PIR) will replace the companies’ existing Deferred Fuel Cost Recover Rider (DGC), Generation Cost Recovery Rider (DGC) and the Residential Electric Heating Recover Rider (RER1) where applicable.
More information regarding FirstEnergy’s securitization order is available online at www.PUCO.ohio.gov. Click on the link to the Docketing Information System (DIS) and enter the case number 12-1465-EL-ATS.
The Public Utilities Commission of Ohio (PUCO) is the sole agency charged with regulating public utility service. The role of the PUCO is to assure all residential, business, and industrial consumers have access to adequate, safe and reliable utility services at fair prices while facilitating an environment that provides competitive choices. Consumers with utility-related questions or concerns can call the PUCO Call Center at (800) 686-PUCO (7826) and speak with a representative.
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