History of All Electric Crisis of Winter 2010
Beginning in May/June 2009, FirstEnergy eliminated the long standing, all electric space and water heating discount rate schedules and consolidated these 21 separate schedules into one standard residential schedule for each company. In addition, a large rider RDD was accelerated on the distribution portion of the bill which caused large increases for all residential customers. In an attempt to provide relief to customers who were previously on one of the 21 special schedules, two temporary credits were implemented for all kwh usage above 500kwh. These credits totaled approximately 3.6 cents. However, due to the enormous increase in the overall retail rates, these credits proved ineffective. Many customers who were previously on one of the special rate schedules saw utility bill increases ranging from 60% to 100%, and a public outcry ensued.
On Wednesday, March 3, 2010, the PUCO issued an (emergency order) (press release)giving FirstEnergy until March 17 to file new tariffs to temporarily reinstate the all-electric rates that were in effect in December 2008 (Gov. Strickland's first letter). On April 15, the PUCO made another press release (full order) that clarified the order by including more properties and stating that the rate relief would be in effect at minimum until the end of the 2011 winter heating season. The additional properties included those moved into after Jan 1 2007 as long as the property had previously received the discount. After receiving an extension, FirstEnergy filed new tariffs effective May 21 to comply with the April 15 ruling. (Gov. Strickland's second letter)
All discounts are suspended during the summer months of June, July, August, and begin again in September. Note: FirstEnergy is the parent company for Ohio Edison, Toledo Edision, and CEI (Illuminating Company).
On September 24, 2010, the PUCO Staff released its report of and potential solutions for the all-electric issue.
The six Public PUCO Hearings were held in the Fall of 2010, and testimony is documented in the PUCO Docket.
The Evidentiary Hearing was held in February 2011, and testimony is documented in the PUCO Docket.
The PUCO Commission made its decision on May 25, 2011. In summary, the Commission ruled that the full discount (frozen rates) would be in effect for the first two years, and thereafter, the RGC credit would be phased out over the next six years. The EDR and RDC credits would remain on a going forward basis. The credits would only apply to those residences using electricity as their primary or sole source of electricity, thus eliminating the RGC credit immediately for load management customers not heating with electricity. (Read Full PUCO Decision)
View OCC's Powerpoint Overview of All-Electric History
Original CKAP Permanent Solution Requirements
(Published March 2010)
1. A permanent, all-electric rate differential on generation and distribution charges for nine months of the year for all-electric heating, load management, and water heating customers that stays with the property upon transfer to a new owner, including homes, apartments, and condos. The rate differential should be equivalent to the pre-2007 declining block structure.
2. The rate differential should be given to EVERY property, even those currently excluded because they were built or converted to all-electric after Jan 1, 2007.
3. Overcharges made by FirstEnergy between May 2009 and May 2010 should be refunded in full.
4. FirstEnergy must NOT raise the rates of other ratepayers, but rather absorb the cost of this program which benefited FirstEnergy for the last 30 years. FirstEnergy made verbal and written promises to owners and builders alike to entice them to go all-electric, and they must not be allowed to break these promises and charge others for their breach of contract!