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Coalition files to block FirstEnergy rate increase

ASSOCIATED PRESS

Coalition files to block FirstEnergy rate increase

Group: Hike unjust to residents

The Northwest Ohio Aggregation Coalition, a local bulk power-buying group formed by 11 area communities, filed an objection Tuesday with federal regulators to block a pending rate hike by FirstEnergy Corp.

The coalition submitted a petition with the Federal Energy Regulatory Commission to intervene and comment on the proposed increase that would guarantee profits over the next eight years at four power plants operated by FirstEnergy, the parent of Toledo Edison.

The Lucas County commissioners said the purchase power agreement under review by the Public Utilities Commission of Ohio would equate to a $3.9 billion bailout for the utility and an unjust rate hike on businesses and residents.

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Tina Skeldon Wozniak, president of the commissioners, said the hike would cost $800 to $1,000 extra a year for families in northwest Ohio.

“This bailout is not good for northwest Ohio. It is mostly good for one company,” she said at One Government Center.

The increase would add a fee averaging about $3.25 on every residential customer’s bill for the first year of the plan to subsidize the four plants until such time as energy prices rise and the plants are profitable again. Then the fee would either remain on bills or turn into a credit if the plants begin to make money, the utility claims.

FirstEnergy spokesman Doug Colafella disputed the $3.9 billion projection given by the elected officials.

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“We believe this is a very reasonable plan and helps protect Ohio jobs and keeps rates stabilized over the long term,” he said.

Contact Mark Reiter at: markreiter@theblade.com or 419-724-6199.

First Published February 17, 2016, 5:00 a.m.

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