FirstEnergy Agrees To Not Adjust Rates For Profit

COLUMBUS, OH — FirstEnergy has agreed to not use a clause in House Bill 6 that would have allowed the company to collect an extra $102 million from customers.

“Under its now removed prior leadership, FirstEnergy built a feeding trough that it thought would guarantee it record profits year after year, filled with unearned money out of Ohioan's pockets” Ohio Attorney General Dave Yost said. "This agreement recognizes the corrupt influence used to guarantee a for-profit company above-market returns for years to come by operation of law."

The out-of-court settlement addressed a mechanism that allowed FirstEnergy to guarantee a level of annual profits using additional fees on customers. The mechanism let FirstEnergy adjust rates to ensure it made at least $978 million a year in perpetuity.

That profit number, $978 million, was set in 2018 when a frigid winter and hot summer boosted the company's revenue.

As part of the settlement, FirstEnergy agreed to:

• FirstEnergy utilities will file an emergency application with PUCO on Monday, Feb. 1 to immediately set the decoupling rider to $0.
• PUCO will then need to hold a meeting to approve the application.
• Once FirstEnergy confirms the rates are no longer being charged, Yost will withdraw the court motion.

House Bill 6 provided a $1.3 billion bailout for two FirstEnergy nuclear plants (now Energy Harbor plants) in Ohio. The legislation is now at the heart of a racketeering investigation involving Ohio House Speaker Larry Householder and other political figures.