Dive Brief:
- FirstEnergy Solutions has accused its competitors of "ulterior motives" following an invitation by the Public Utilities Commission of Ohio (PUCO) for other companies to comment on an investigation into the company's one-off fees for consumers.
- The comments were targeted unfairly at FirstEnergy and not at the issue of one-off surcharges themselves, FirstEnergy argued.
- The PUCO is investigating a decision, since rescinded for residential customers, by FirstEnergy to charge ratepayers a one-time fee to help cover costs incurred during this year's extreme winter conditions. Business customers still face a 1-3% annual bill surcharge.
Dive Insight:
PUCO's investigation began after some customers, especially those on a fixed rate contract, complained about the surcharge, challenging its legality. FirstEnergy claimed an allowance for such fees is included in customer contracts and is standard industry practice. Other utilities, like American Electric Company, use similar surcharges to cover extra costs.
Ohio consumer advocacy groups argued that just because the possibility of such charges was included in contracts does not mean that customers knew they were there, or what they meant in practice. Consumer groups are campaigning to have the fees scrapped entirely. The Ohio Manufacturers' Association Energy Group, one of the most vocal critics of the fee, said that a "fixed rate" implies no extra fees. This is immaterial, according to FirstEnergy, as the contract clearly states what the utility can and cannot charge customers.
"No one in Ohio is forced to shop with a competitive retail electricity supplier," said FirstEnergy. The company pointed out that other contracts, such as credit card and mortgage agreements, contain similar language. FirstEnergy thinks an effort to educate customers about their contracts would be far more beneficial than scrapping the clause entirely.