The Ohio Supreme Court overturned the Public Utilities Commission of Ohio’s approval of a FirstEnergy bailout that left customers footing a nearly $600 million bill. The bailout — misleadingly named the Distribution Modernization Rider (DMR) — has cost customers up to $204 million annually since it was approved in 2017, and, as the Supreme Court ruled, provided no guarantees the funds would go to grid modernization, nor that there were proper customer safeguards in place. Instead, those funds could be siphoned off from FirstEnergy’s Ohio utilities, and used to bail FirstEnergy Corp. out of its poor coal and nuclear investments.

Utility bailout attempts in Ohio continue to lose out to reason

Appellant, Sierra Club, in accordance with Sections 4903.11 and 4903.13 of the Ohio Revised Code and Supreme Court Rules of Practice 3.11(D)(2), 5.05, and 10.02, hereby gives notice to the Supreme Court of Ohio and to the Public Utilities Commission of Ohio (“Appellee” or “Commission”) of its Appeal to this Court from Appellee’s Fifth Entry on Rehearing entered in its journal on October 12, 2016 (Attachment A) and Appellee’s Eighth Entry on Rehearing entered in its journal on August 16, 2017 (Attachment B) in Commission Case No. 14-1207-ELSSO. Appellant was a party of record in the Commission case from which this appeal is taken.

Environmental groups bring case against potential billion dollar utility bailout to Ohio’s highest court

FirstEnergy’s no-strings-attached bailout staged for Ohio’s highest court

In the matter of the Applicant Ohio Edison Company , the Cleveland Eelectric Illuminating Company, and the Toledo Edison Company for authority to provide for a standard service offer persuant to R.C. 4928.143 in the form of an Electric Security Plan. On rehearing, the Commission finds that the Companies' Proposal to modify Rider RRS should not be adopted and that the Staff's alternative proposal to establish Rider DMR should be adopted. Further, the Commission makes additional modifications to the Stipulations approved by the Commission to ensure that the Stipulations, as a package, benefit ratepayers and the public interest and that the Stipulatioiis violate no important regulatory principles or practices.  

Customers will be forced to pay costly subsidies for FirstEnergy and its shareholders

Ohio leading nation in coal retirements; has an opportunity to lead the country in clean energy production and manufacturing

A missed opportunity to require FirstEnergy to modernize the grid

On March 31, 2016, the Commission approved the Third Supplemental Stipulation1 in this proceeding, which sets forth an Electric Security Plan (“ESP”) for the Ohio Edison Company, The Cleveland Electric Illuminating Company, and The Toledo Edison Company (collectively, “FirstEnergy” or “Companies”). Rehearing is necessary because the Commission‟s Order is unlawful and unreasonable. Simply put, the governing law and the facts of this case do not, and cannot, justify forcing customers to assume the risks of merchant generation while guaranteeing FES and its shareholders all of their costs and a rate of return.

Petition finds bailout illegal and costly; comes days after federal regulators require review of same bailout transaction

Advocates hopeful ruling signals end to “sweetheart deal,” bailout

Opinion In the Matter of the Application of Ohio Edison Company, The Cleveland Electtic Illuminating Company, and The Toledo Edison Company for Authority to Provide for a Standard Service OfferPursuant to R.C. 4928.143 in the Form of an Electtic Security Plan.

Statement from Earthjustice, who helped defend customers at the hearings before the Public Utilities Commission of Ohio

Earthjustice is litigating in Ohio against proposals by two major utilities to force customers to prop up eight outdated power plants—seven coal and one nuclear—for the next 15 to 35 years. Proposals by FirstEnergy and American Electric Power could cost customers billions of dollars while guaranteeing profits for corporate shareholders who should instead be investing…

Earthjustice is litigating against proposals by FirstEnergy and American Electric Power that could cost customers billions while guaranteeing profits for corporate shareholders.

Ohio was on track to source about an eighth of its energy from renewables— and then reversed course under pressure from fossil fuel-friendly state assemblymen.