Currently, Illuminating Company customers are paying for past construction costs for generation plants under a rider called the Regulatory Transition Charge. This rider is scheduled to expire on December 31, 2010. Thus, for purposes of budgeting for 2011, you may assume that your electric costs will decrease by the amounts shown below, based upon your rate schedule.
- Residential: 1.1849 cents per kilowatt hour (kWh)
- Secondary: 1.1448 cents per kWh
- Primary: 1.1070 cents per kWh
- Subtransmission: 1.1026 cents per kWh
- Transmission: 0.5205 cents per kWh
These decreases will be offset by increases in other Illuminating Company riders for certain rate schedules:
- For all customers, a new Deferred Fuel Cost Recovery Rider will take effect on January 1, 2011 at a rate of 0.0492 cents per kWh. This would be $0.49 per 1,000 kWh.
- For residential customers, the Residential Deferred Distribution Cost Recovery Rider will increase by 0.7086 cents for each of the first 500 kWh, through May 31, 2011. This rider is zero during the summer months of June, July and August. The maximum increase is $3.54 per month for the first five months of 2011.
- For Secondary Service customers, the Non-Residential Deferred Distribution Cost Recovery Rider will increase by 1.1448 cents per kWh, through May 31, 2011. This rider is zero during the summer months of June, July and August. This would be $11.45 per 1,000 kWh for the first five months of 2011, and would exactly offset the reduction in the transition charge.
These are the changes that are known at this time; there could be others. Note also that these rates are effective through May 31, 2011. FirstEnergy has filed a new rate plan to be effective on June 1, 2011, but the Public Utilities Commission of Ohio has not yet ruled on the filing.
