Effective May 21, FirstEnergy will extend discounts not only to customers who had the all-electric rate prior to January 1, 2007, but also to customers who rented electrically heated apartments or bought all-electric homes after that date. For more details, see John Funk’s article in the May 11th Plain Dealer: FirstEnergy discount
These lower rates will now apply to 348,000 homes at least through next winter. No decision has yet been made about who will pay for these subsidies that could amount to $100 million to $150 million annually. The Public Utilities Commission of Ohio (PUCO) is working on a permanent resolution to the issue.
In any event, electric costs are expected to increase significantly in the next three to five years. If you have an all-electric home and you want to minimize the risk of losing your discount to political whims, we recommend that you look into ways to become more energy efficient. First, do all you can to reduce drafts and heat losses from your house. Switch from incandescent light bulbs to compact fluorescent bulbs or LEDs. If you replace an appliance, look for an energy efficient model. Finally, if you currently have baseboard (resistant) heating, look into heat pumps or geothermal systems. Heat pumps are twice as efficient as resistant heating, and geothermal is up to 4 times more efficient. For more ideas, see our report on the Pursuit of a Net Zero Energy Home.
