Today, FirstEnergy (FE) announced updates to its DSE2 rider rates, effective July 1, 2012.  New rates will be significantly higher for most customers throughout FirstEnergy-Ohio territory, including customers of Ohio Edison (OE), the Illuminating Company (CEI), and Toledo Edison (TE).    These new rates are in response to aggressive energy efficiency mandates that have been placed on Ohio’s distribution utilities.  Because Ohio distribution utilities remain revenue neutral, FirstEnergy passes on the costs associated with these mandates to their customers through a charge called the “Demand Side Management and Energy Efficiency (DSE2) Rider.”

All except TE’s General Service – Secondary (GS) and General Service – Primary (GP) customers will see significant increases in DSE2 rates on July 1 and most will experience increases in the triple digits.  Hardest hit are OE General Service – Transmission (GT) customers who will see their rates increase nearly 625%, from 0.0410₵ per kilowatt hour (kWh) to 0.2972₵ per kWh.   The table below shows FirstEnergy’s new DSE2 rates and compares them to the current rates that were implemented on January 1, 2012 (table no longer available).

Mercantile customers (i.e., non-residential customers whose combined accounts use more than 700,000 kilowatt hours per year or are part of a national account) have the ability to become exempt from this rider by completing energy efficiency projects.  In doing so, these customers benefit, not only from a reduction in electric costs associated with exemption from the rider, but also from the overall reduction in their electric consumption.  If you have not already done so, contact Brakey Energy so that we may help you identify qualifying energy efficiency projects and help you become exempt from this increasingly expensive rider.