CLEVELAND — FirstEnergy customers could find the start of their summer hit with a much larger electric bill.
The most recent auctions from October, January and March show the average price for electricity is slated to increase from the current weighted price of $52.63/MWh to $101.08/MWh beginning in June.
This price hike is only slated to impact customers enrolled in the default rate, or standard service offer at The Illuminating Company, Ohio Edison and Toledo Edison.
Those who selected their own electric supplier or those enrolled in government aggregate programs should not be impacted.
Matt Schilling at the Public Utilities Commission of Ohio told News 5 there are several factors that can impact these prices.
"The war in Ukraine has put incredible pressure on natural gas prices globally and natural gas is a key fuel for electric generation here in America," he said.
In a statement to News 5, a spokesperson with FirstEnergy said:
Ohio is a deregulated state, and while FirstEnergy’s Ohio utilities are responsible for delivering electricity to your home or business, they do not generate that electricity. That’s the role of an energy supplier. Customers can shop among a wide range of competitive energy suppliers for electric generation, which typically represents about half of a customer’s monthly bill. Our Ohio utilities do not profit from the generation portion of a customer’s bill.
Customers who do not shop for electricity are charged a default generation rate, called the “price to compare.” FirstEnergy’s Ohio utilities update their generation prices for default customers included in the “price to compare” annually based on the results of competitive procurements.
The company’s Ohio utilities’ (Ohio Edison, Toledo Edison and The Illuminating Company) respective prices to compare will be updated effective June 1 unless otherwise ordered by the Public Utilities Commission of Ohio. The prices are adjusted in September to reflect the winter season, and there are also quarterly reconciliations that impact the price to compare that occur in January, April, July and October.
While the prices to compare for June 1 are not yet finalized, they are expected to increase on June 1 based on the results of the most recent competitive procurements. The average weighted price of our three auctions was $101.08 per megawatt hour, up from the current price of $53.62. The current prices to compare for our Ohio utilities are approximately 5.9 cents per kilowatt hour, effective April 1.
A variety of energy pricing options and plans are available from third-party generation suppliers if a customer chooses to shop. A careful review of those options could result in potential savings this summer. When evaluating options, customers should consider:
· Energy price
· Plan structure (fixed or variable rate)
· Contract terms and conditions
· Any taxes, charges or fees that may apply.
Customers who choose not to shop among suppliers can continue to select the default service option. Customers should consult the price to compare under the "messages" section of their electric bill when considering their different alternatives.
At Step Forward's Home Energy Assistance Program (HEAP) offices, leaders told News 5 they began looking at options to better help customers when they first learned of the impending rate hikes a couple of weeks ago.
"The electric customers are coming in droves now," Paul Billups, Energy Assistance Services Director, said. "It’s kind of scary with the anticipated changes happening in June, our summer crisis program starts in July so that's going to affect us in ways we don’t know yet."
Billups explained that they have already seen a 30% increase in calls for their services over the past year due to rising costs for families across the board, including heat and groceries.
To prepare for summer, Billups said they're in the process of hiring more staff to meet the demand, and anyone interested can learn more by clicking here.
To learn more about how to enroll in a different energy supplier or compare rates, click here.
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