TOLEDO, Ohio — By May of 2024, Ohio FirstEnergy consumers will likely see another price increase. Rates increased back in June of 2023, too, when prices doubled, but the electric services company told WTOL 11 that the difference lies in where the increase comes from.
The June increase was due to supplier rates and customers had and still have control over which supplier receives that money.
The potential increase in 2024, however, is due to FirstEnergy company rates rising.
Toledo Edison spokesperson Lauren Siburkis said the company did not benefit from the supplier rate increases at all. Toledo Edison serves 316,000 customers and the usage grows every year.
"As our infrastructure ages and as our customers are using more energy, it's important to make investments in our electric system to keep up with the worsening storm systems that we are seeing and also to meet the electrification goals of our customers," Siburkis said.
She said FirstEnergy needs $500 million in investments per year over the next eight years to ensure the company meets its reliability goals and provides reliable energy to more than two million consumers across Ohio.
And FirstEnergy does not plan to foot the entire bill.
"So our customer using around 750 kilowatt hours per month will likely see a $3.11 increase on their bill in the first year and then from there it will go down to about 0.5% increase on their electric bills," she said.
It's all outlined in the FirstEnergy electric security plan, which is currently just a proposal from the company to the Public Utilities Commission of Ohio. The plan is set to be reviewed in a hearing on Nov. 7 and a decision is not expected until early 2024.
"Utility representatives will present their case and why they think their application is in the public interest and after that court-like hearing plays out it, will go to the five-member PUCO to enter a decision on that case," said PUCO spokesperson Matt Schilling.
The commission is still accepting consumer opinions on FirstEnergy's proposal, which Schilling says weighs heavily on the commission's final decision.
Siburkis said if the electric security plan is approved, it will then be out of consumers' control.
Members of Toledo's City council are weighing in and opposing the proposal. Council will vote on a proposal on Oct. 9.
According to council documents, FirstEnergy has asked the state to approve a plan that would give the company $1.4 billion. But Siburkis said that the number is not accurate.
"We did not come up with that number and we do not know how a third party calculated that number, so it's simply inaccurate to say it's a $1.4 billion rate plan," she said.
Council member George Sarantou provided WTOL with the following statement:
"FirstEnergy on April 5, 2023, filed 12 applications with the Public Utilities Commission Of Ohio (PUCO) seeking a $1.4 billion increase in electric rates for Toledo Edison. Therefore, the $1.4 billion is based on FirstEnergy's filing on April 5, 2023. The rate increase would occur from 2024 through 2032, based on their filing to PUCO. I spoke with J.P. Blackwood of the Ohio Consumers Council.
As the sponsor of this resolution, I am extremely concerned that since Toledo Edison recently raised our rate by 109% - residential customers were paying 5.9381 cents per kWh to 12.4065 cents per kWh, why do they need another huge rate increase? This increase went into effect on June 1, 2023. Furthermore, this outrageous rate increase will hurt all residential customers of Toledo Edison, as well as commercial and industrial customers.
From an economic development point of view, our region very often loses out to other areas of Ohio and the nation, because our companies and residents are paying some of the highest electric rates in Ohio and the USA."
Schilling said public input is encouraged. To do so, visit the "Contact Us" page on PUCO's website.