State Regulators Approve Short Term Rate Hikes
State regulators have approved a pair of deals that allow FirstEnergy and AEP to impose multi-billion dollar rate increases on electricity customers to subsidize some older coal-fired and nuclear power plants.
The Public Utilities Commission unanimously passed the power purchase agreements, which the companies say have clear benefits to the companies and to consumers.
PUCO chair Andre Porter noted the plans had been amended to stabilize customer bill rates and limit potential impact:
“The commission opinion and order today modifies those stipulations to ensure that the end result is in the best interest of all Ohioans,” said Porter.
Opponents are likely to challenge the decisions. The Ohio Consumers’ Counsel had estimated the rate hikes could add up to to $5.9 billion over eight years. It’s unclear what the total will be under the commissions’ changes to the plans.