![]() AEP, FirstEnergy and Dayton Power & Light transferred their utilities’ former power plants to affiliates.īy the time that finally happened, lawmakers passed Senate Bill 221. Duke Energy sold almost all of its generation assets early on. Ohio’s law to deregulate sales of electricity generation passed in 1999, but it took roughly a decade before utilities actually spun off their power plants. How cross-subsidies affect customer bills AEP Ohio’s customers also pay a Phase-In Recovery Rider for “ fuel that was consumed but not billed to customers from 2009 to 2011.” For example, FirstEnergy’s Rider PIR pays debt service on fuel and purchased power that apparently were first acquired more than a decade ago. Some current costs also reach back to earlier generation activities. For the sample used for the Illuminating Company, the Customer Charge was $4.00, but AEP Ohio customers paid $8.40. Even where charges have the same names, amounts may vary. Other utilities’ electric bills may have the same or different riders and may group them under different parts of the bill. ![]() The next four items fall within the Cost Recovery Charges, Eck said. The first eight items are included in the bill’s Distribution Related Component, according to FirstEnergy spokesperson Christopher Eck. This guide to deciphering bill rider charges would apply to a sample 2019 residential bill for FirstEnergy’s Illuminating Company. Still to come are charges to cover subsidies for two FirstEnergy nuclear plants and for coal plants, and to reflect HB 6’s changes to the energy efficiency and clean energy standards. ![]() Shifts costs for FirstEnergy discounts to certain customers who have all-electric heating in their homes. Residential Electric Heating Recovery Rider Generally covers costs from grid operator PJM for using the bulk transmission system and related services.ĭebt service for refinancing costs for fuel and purchased power, much of which was initially bought at least a decade ago. Rates fall for entities using more electricity.Īdministrative costs for low-income programs and consumer education programs.Įconomic incentives from the utility shift costs to other customers, including various industrial and commercial users. Shifts costs of low-income customers who can only afford to pay a set percentage of their income.Ĭustomers using 2,000 kWh or less per month pay about half a cent per kWh. Shifts costs for uncollectible charges so paying customers are effectively paying for others who don’t pay their bills. Going forward, HB 6 will cut these charges but guts the energy efficiency and renewable energy standards. The average has been about $5.61 per month, including about $2 monthly savings even if customers don’t take part in those programs. The charge does not reflect savings from those programs. Utility costs for energy efficiency and peak demand reduction programs. However, earlier charges for the rider aren’t refundable.ĭemand Side Management and Energy Efficiency Rider The Ohio Supreme Court held this rider was unlawful in June 2019, so an August 2019 order required FirstEnergy utilities to refund the unlawful no-strings-attached credit support rider for the month of July. Recovers costs for investments in the distribution system. (based on a sample 2019 bill from FirstEnergy’s Illuminating Company)įor smart grid metering, effective July 1, 2019. It will also scale back the state’s energy efficiency and renewable energy standards. Bills will also jump by a few dollars each month after utilities implement a new law, House Bill 6, meant to bail out two of FirstEnergy’s nuclear plants and two 1950s-era coal plants. However, many of the concepts will be similar. Here’s a guide to what all the small print says - and what it doesn’t say - on a sample bill for a residential customer of FirstEnergy’s Illuminating Company. And the bills don’t clearly detail all charges to consumers. But they all have one thing in common: They’re hard for many people to understand. With different utilities serving specific parts of the state, Ohioans’ electric bills and the tariffs that govern them vary. Read the previous installment: How affiliate arrangements, subsidies and riders led to higher electric bills in Ohio - even as power prices declined. This article is part of a joint investigative project by Eye on Ohio and the Energy News Network.
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