FirstEnergy’s electric distribution utilities have agreed to record settlement for $306 million in “significantly excessive earnings” to be returned to over two million FirstEnergy residential consumers in addition to commercial and institutional customers. The Stipulation was a global settlement with no party opposing and almost all parties, including OPAE supporting.
If approved, the Stipulation would begin by refunding $96 million to all rate classes based on FirstEnergy’s 2017–19 significantly excessive earnings tests (SEET). The average residential customer will receive $26.91 for the average residential customer and other customer classes would receive $2.68 per megawatt hour (MWh).
Starting in 2022, the remaining $210 million would be refunded as follows:
- $80 million, including $1.87 per month or $22.44 annually to the average residential consumer.
- $60 million, including $1.40 per month or $16.80 annually to the average residential consumer in 2023.
- $45 million, including $1.05 per month or $12.60 annually to the average residential consumer in 2024.
- $25 million, including $.58 per month or $6.96 annually to the average residential consumer in 2025.
The Stipulation resolves ten pending regulatory proceedings related to the 2017-2020 annual earnings tests, a four-year review of FirstEnergy’s electric security plan, and the 2014-2018 energy efficiency audits. Though no party objected, the Commission must still approve the Stipulation, which is expected.