COLUMBUS — A third-party audit report examining FirstEnergy’s Ohio utilities’ rates related to the political and charitable spending in connection to House Bill 6 during the 133rd General Assembly is now available.
This audit report is a part of the PUCO’s four ongoing proceedings to investigate issues related to FirstEnergy and the passage of House Bill 6 during the 133rd General Assembly.
The audit, performed by Marcum, LLP, examined 53 payments totaling $75,324,603 made in support of the passage of HB 6 and subsequent referendum efforts, as well as lobbying and charitable expenses.
Impact to Ohio utilities
Of the 53 payments, parts of six payments by FirstEnergy Service Corp. and FirstEnergy Solutions totaling $5,833,333 impacted FirstEnergy’s three Ohio electric distribution utilities, Cleveland Electric Illuminating Company, Ohio Edison, and Toledo Edison. From these six payments, $4,866,233 was allocated to FirstEnergy’s three Ohio utilities. Of that amount, $14,534 was charged to the utilities’ customers in pole attachment rates. Pole attachment rates are generally only paid by other utilities, telecom providers and municipal corporations.
The remainder of these six payments allocated to the Ohio utilities were booked to the utilities’ delivery capital recovery or demand side management riders; however, the audit report describes there was no impact to customer rates as the utilities had already reached PUCO-established limits on expenses that could be recovered from customers through rates.
These findings are consistent with a 2021 PUCO audit of the utilities’ delivery capital recovery rider.
The remaining 47 payments were booked to accounts for FirstEnergy Corporation, FirstEnergy Solutions, or other affiliates, meaning they were not expenses of and had no impact to the Ohio utilities.
Audits and ongoing proceeding next steps
The PUCO opened four investigations related to FirstEnergy and House Bill 6.
A PUCO administrative law judge will issue an entry in the near future seeking comments on the audit report issued.
An evidentiary hearing on the Ohio utilities’ compliance with corporate separation regulations begins on Oct. 9, 2024.
An evidentiary hearing regarding the PUCO’s review of the utilities’ delivery capital recovery rider and distribution modernization rider is scheduled to begin Feb. 3, 2025.
A copy of the audit report is available on the PUCO website at www.PUCO.ohio.gov by clicking the link to “Docket Information System” and searching for case 20-1502-EL-UNC.
The Public Utilities Commission of Ohio (PUCO) is the sole agency charged with regulating public utility service. The role of the PUCO is to assure all residential, business and industrial consumers have access to adequate, safe and reliable utility services at fair prices while facilitating an environment that provides competitive choices. Consumers with utility-related questions or concerns can call the PUCO Call Center at (800) 686-PUCO (7826) and speak with a representative.
