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Split Opinion Over FirstEnergy Rate Plan

A plan from FirstEnergy could result in higher electric bills for the next three years, but there's debate over whether the short-term increase might save money in the long-run. From our Statehouse bureau Andy Chow has more.

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FirstEnergy's Power Purchase Agreement is a plan to pass part of the costs of operating a nuclear power plant and several coal plants on to the ratepayers.

FirstEnergy says the typical monthly bill go up an average of $2.20 over the first three years but the plan will end up saving customers $2 billion over 15 years.

But Dan Sawmiller, with the Ohio Sierra Club's Beyond Coal Campaign, says FirstEnergy's estimates are "incredibly rosy."

Sawmiller: "The FirstEnergy companies have a profit-driven incentive to make these rosy projections. This is a deal that bails out their generation companies that is currently in a lot of trouble."

And the Ohio Consumers' Counsel thinks it will cost ratepayers $3 billion. Hearings before state regulators start soon.