For Immediate Release
Contact: Matt Schilling
614 | 466 7750
COLUMBUS, OHIO (Oct. 10, 2012) – The Public Utilities Commission of Ohio (PUCO) today approved an application by FirstEnergy to securitize approximately $555 million in previously approved deferred costs. This is the first use of the recently enacted Securitization Act created by House Bill 364.
“Today’s ruling will ultimately lead to long-term savings for FirstEnergy’s customers,” PUCO Chairman Todd A. Snitchler stated. “By securitizing deferred costs, FirstEnergy will take advantage of lower interest rates available through the bond market and pass the savings on to ratepayers.”
The new Phase-in Recover Rider (PIR) will replace the existing Deferred Fuel Cost Recover Rider (DGC), Generation Cost Recovery Rider (DGC) and the Residential Electric Heating Recover Rider (RER1), effectively saving customers approximately $104 million.
The Commission will retain an independent financial advisor to assist in reviewing the final financing terms upon the company’s issuance of the bonds. The Commission also has co-equal decision making authority with the utility with respect to the structure and pricing of the bonds.
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.
The Commission’s opinion and order issued today in case number 12-1465-EL-ATS will be available online at www.PUCO.ohio.gov. Click on the link to Docketing Information Center and enter the case number.
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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