Opposition to Electricity Rates Going up in Ohio

An electricity security plan was recently approved in Ohio but it faces opposition because of the fact that it is going to mean higher rates for consumers. The plan was agreed upon by the Public Utilities Commission of Ohio and FirstEnergy Corp. among other interested parties. The result of the plan is to allow FirstEnergy Corp. to adjust rates upwards from June 2011 through at least May 2014. FirstEnergy says that the rate hikes are necessary in order for the company to be capable of upgrading and maintaining its wires, transformers, substations and the other equipment it uses to supply energy to Ohio customers.

Distribution-rate increases would rise significantly in the area. This would occur over a period of time with four different relevant bidding sessions taking place over the next two years. Opponents of the plan point out that utilities in the area were given approval for a rate hike in 2009 and that this new plan is double the amount allowed by that rate hike. There are 2.1 million FirstEnergy customers in Ohio who would be affected by this rate increase.

Consumer advocates and environmental advocates both oppose this plan. Citizen Power, the Northeast Ohio Public Energy Council, the Ohio consumer’s counsel and the Natural Resources Defense Council are among those who have voiced their opposition. The major reason that these people are opposed to plan is because they believe that consumers cannot afford increased payments at this time.

Ohio has been hit hard by the recession. Many people in the state are out of work. Things don’t seem to be improving rapidly in this area. This makes it impossible for consumers to consider paying higher and higher electricity bills. The one recourse that these customers do have is to choose an alternative energy supplier. There are competitive suppliers in the area that could be used instead of FirstEnergy. People who choose to work with such competitive suppliers might be able to keep their electricity costs down while also sending a message that rate hikes aren’t going to be accepted by consumers. And, of course, reducing energy use in the home will help to keep costs down as well.

Source: http://www.ohio.com/business/89094557.html