FirstEnergy Corp., which owns Toledo Edison, has notified state regulators that it will file a plan in June to increase its distribution rates by $334 million starting in 2009.
By then, all previous fees it collected or costs it had frozen or deferred under Ohio s 1999 electric deregulation law will come to an end.
The Akron said the increase will cover the cost of its power distribution operations over the last nine years, including deferred fuel charges, investments in new equipment and infrastructure, and other upgrades to or maintenance of its grid system.
The rate increase would go into effect Jan. 1, 2009 for Toledo Edison and Ohio Edison customers, and May, 2009 for Cleveland Electric Illuminating customers. Because of deregulation, which froze electric rates since 2000, the increase would be utility s first since 1996.
FirstEnergy said the increase will be offset by the end of other fees and charges customers have paid in part to help the utility repay its debts.
But industry experts said it is unclear what the cost of electricity will be in 2009, so customer bills could rise or fall as a result.
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