FirstEnergy proposes 3-year electric rate hike

SANDUSKY — FirstEnergy is asking state regulators to approve a three-year rate increase to the distribution portion of residential electric bills, prompting pushback from consumer advocates who say the hike will hit vulnerable Ohioans hard. The utility company filed a request with the Public Utilities Commission of Ohio to increase rates starting in 2027. The distribution charge covers the cost of delivering electricity to homes, paying for poles, wires, tree trimming and system maintenance. FirstEnergy stated it plans to spend about $800 million per year on its distribution system and $83 million annually for tree trimming. The proposal comes as Ohio families continue to face higher costs for food, housing, gasoline and other essentials. The Office of the Ohio Consumers' Counsel, the state's residential utility consumer advocate, has formally intervened in the case to challenge the increase. Sue Daugherty, director of the Erie County senior advocacy group Serving Our Seniors, emphasized that the proposed hike — which could amount to roughly $15 more per month or $180 a year by the end of the phase-in — is not a trivial expense for older residents on fixed incomes. "According to the Social Security Administration, about one-quarter of the aged live in households that receive at least 90% of family income from Social Security," Daugherty said. "Many may see an increase of $15 more per month as small, but it isn't." Daugherty noted that the average cost of a Medicare prescription drug plan is $34.50 a month and is unlikely to drop over the next three years. "Both are equally vital to afford," she said. Daugherty also contrasted the proposed rate hike for everyday consumers with the multimillion-dollar compensation packages of utility executives. According to recent SEC proxy statements, FirstEnergy CEO Brian Tierney received more than $13 million in total compensation for the 2025 fiscal year. "The cost increase is not for producing electricity. It is to pay Ohio Edison more money for sending the electricity over the wires to get to the homes of residential electric consumers," Daugherty said. "It is up to residents, who consume electricity, to voice the impact this rate increase will have on their ability to remain connected." While public hearing dates have not yet been scheduled, the OCC encourages residents to make their voices heard. Consumers can submit public comments online through the PUCO website or mail a letter referencing Case No. 26-0347-EL-AIR to the Public Utilities Commission of Ohio in Columbus. For more information or to access the OCC's consumer alert, residents can call 1-877-742-5622 or visit occ.ohio.gov.