In re Application of Ohio Edison Co.Annotate this Case
The Supreme Court affirmed in part and reversed in part the order of the Public Utilities Commission of Ohio (PUCO) that modified and approved an electric-security plan (ESP) for the FirstEnergy Companies, holding that the Commission erred in modifying the ESP to add a distribution modernization rider (DMR) that was not part of the original application.
The Commission concluded that the DMR, which allowed the FirstEnergy Companies to collect between $168 to $204 million in extra revenue per year, was valid under Ohio Rev. Code 4928.143(B)(2)(h) because the revenue it generated would purportedly serve as an incentive for the companies to modernize their distribution systems. The Supreme Court reversed the Commission's order as it related to the DMR and remanded with instructions to remove the DMR for the companies' ESP, holding that the DMR did not qualify as a proper incentive under section 4928.143(B)(2)(h) and that the conditions placed on the recovery of DMR revenue were not sufficient to protect ratepayers.