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Ohioans have a right to be upset over electricity hikes

Anger and outrage are echoing throughout the Mahoning Valley — and all of Ohio, really — now that FirstEnergy has announced many utility users will see their rates doubling.

Indeed, those rumblings are warranted.

Starting June 1, FirstEnergy default customers — those who purchase electricity directly from the company and not another retail supplier — saw their electricity rates skyrocket.

FirstEnergy companies include Ohio Edison, which services the Mahoning Valley, as well as Toledo Edison and the Illuminating Co.

Ohio Edison customers were paying 5.8 cents per kilowatt hour as of May 31. It jumped to 12.39 cents per kWh the next day. For Toledo Edison customers, it went from 5.9 cents per kWh to 12.41 cents. For Illuminating Co. customers, it went from 5.9 cents per kWh to 12.40 cents.

An average FirstEnergy customer uses about 750 kWh per month, according to the company.

The new higher rates will last through May 2024 and affect only customers on FirstEnergy’s standard service offer.

Among those expressing shock and outrage recently were state officials representing the Mahoning Valley. With summer just arriving, think of what the bills will be for those — like most of us –using air conditioning. Think of how businesses will be affected. And that’s not to mention residents who live on fixed incomes.

With the high inflation rates we all face, simply put, no one can afford this large utility rate hike.

FirstEnergy maintains the increase came due to increased cost of wholesale electricity through competitive auctions. Officials there say the electricity is provided “at cost” to customers. When FirstEnergy participated in the power auctions in the spring and fall of 2022, natural gas prices were very high, but have since dropped.

The Public Utilities Commission of Ohio, which approved auctions for FirstEnergy in 2016 as part of an eight-year plan, oversees the auctions “to ensure the bidding process was open, transparent and adhered to procedural guidelines — basically confirming it was a fair auction,” said Matt Schilling, PUCO spokesman.

After the recent state corruption scandal involving FirstEnergy, it’s no wonder that Ohioans have lost patience and trust in the company.

The scandal involved former Ohio House Speaker Larry Householder and others being found guilty of collecting $60 million in bribes from the company for a $1.1 billion bailout of two failing nuclear power plants owed by a subsidiary of FirstEnergy.

FirstEnergy admitted July 22, 2021, that it conspired to commit honest services wire fraud, agreed to pay a $230 million penalty for its involvement in the scandal and signed a deferred prosecution agreement that could result in dismissal of the charge.

“Ohioans deserve better than utility companies who double our electric rates after orchestrating a massive bribery scheme to get a bailout,” said state Rep. Nick Santucci, R-Howland.

Meanwhile, state Rep. Al Cutrona, R-Canfield, blames the nation’s energy policy — pointing out the Biden Administration’s attack on coal helped trigger a less diversified energy policy.

Indeed, that could be part of the problem. The fact is, however, FirstEnergy — the state’s energy experts — should have seen this energy crisis brewing and began making arrangements to head it off with methods other than passing it on to the utility users. Instead, the company left itself vulnerable to market conditions, failing to act with the necessary urgency ahead of time.

FirstEnergy must feel the wrath not only of the utility users who simply cannot afford the drastic price increase, but also of our state Legislature as a whole.

FirstEnergy electric bills are divided into delivery and supply. FirstEnergy is responsible for delivering electricity. Due to state deregulations of the energy markets, customers can choose a supplier, though FirstEnergy becomes the default supplier if one is not selected.

Unfortunately, the best advice right now is for customers who purchase their electricity directly from FirstEnergy to switch providers.

PUCO encourages consumers to compare offers from retail suppliers for an apples-to-apples comparison chart. Customers can evaluate the price-to-compare on residential bills against other supplier offers.

Be cautious, however, when searching for a new option, and be sure to read the fine print before signing on. Other providers might offer variable rates (rather than fixed rates), and large increases could be built in at the end of the contract.

Options for other retail suppliers can be found at at www.energychoice.ohio.gov.

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