On August 25, 2010, the Public Utilities Commission of Ohio (PUCO) approved a stipulated three-year electric security plan (ESP) for FirstEnergy's electric distribution utilities in Ohio in Case No. 10-388-EL-SSO. The parties to the stipulation represented a wide variety of customer classes, including governmental aggregators, manufacturers, hospitals, secondary and post-secondary schools, low-income residential customers, and the PUCO Staff. Among other things, the PUCO-approved ESP:
- Establishes a competitive bid process (auctions) by which retail generation rates will be established for the time period June 1, 2011 through May 31, 2014
- Implements an 80% load cap that not only prevents a bidder from winning more than 80% of the load available in the auction, but extends the load cap to include post-auction assignments of load
- Recognizes that there will be no minimum stay period or standby charges for residential and small commercial customers not participating in a governmental aggregation
- Creates an RFP process by which FirstEnergy will obtain renewable energy credits (RECs) through long term contracts
- Continues a distribution base rate freeze through June 1, 2014
- Establishes the Delivery Capital Recovery Rider (Rider DCR), which will allow FirstEnergy to recover the costs of distribution improvements up to a maximum of $390 million over the three-year life of the ESP
- Prevents FirstEnergy's retail customers from being held responsible for certain costs associated with its transition from MISO to PJM, including MISO exit fees, PJM integration costs, and at least $360 million in legacy RTEP costs
- Continues the interruptible demand response programs available to industrial customers under Riders ELR and OLR
- Provides funding to three political subdivisions and four trade associations representing manufacturers, hospitals, small businesses, and colleges for assistance with the implementation of energy efficiency projects
- Provides important economic development incentives to the Cleveland Clinic and domestic automaker facilities in Ohio
- Creates a pilot LED streetlight program for the City of Cleveland
- Continues the fuel fund available to low-income customers.
Parties have 30 days to file applications for rehearing, and FirstEnergy retains the power to reject the modified ESP and explore other alternatives for the procurement of its generation supply from June 1, 2011 through May 31, 2014.