File #: R-538-23    Version: 1 Name:
Type: Resolution Status: Approved
File created: 9/29/2023 In control: City Council
On agenda: 10/10/2023 Final action: 10/10/2023
Title: Opposing the proposed rate increase by FirstEnergy Corporation and urging the Public Utilities Commission of Ohio (PUCO) to rule against FirstEnergy Corporation's ESP for their Ohio distributors proposed rate increase; and declaring an emergency.
Sponsors: George Sarantou, Theresa Morris, Nick Komives, Cerssandra McPherson, Vanice Williams
Attachments: 1. Hyperlink

Label

Council Members Sarantou, Morris, Komives, McPherson, Williams, Hobbs and Gadus

 

Title

Opposing the proposed rate increase by FirstEnergy Corporation and urging the Public Utilities Commission of Ohio (PUCO) to rule against FirstEnergy Corporation’s ESP for their Ohio distributors proposed rate increase; and declaring an emergency.

 

Summary

WHEREAS, Toledo Edison is a subsidiary of the publicly traded national electric utility company FirstEnergy serving more than 300,000 customers throughout Toledo and northwest Ohio; and

 

WHEREAS, as of June 1, 2023 Toledo Edison rates are currently climbing from 5.9383¢ per kWh to 12.4065¢ per kWh, a 109% increase, essentially doubling the cost of electricity for many customers in our area; and

 

WHEREAS, FirstEnergy is now asking for an estimated $1.4 billion rate hike through an Electric Security Plan (ESP) that Ohio utilities are required to file that outlines how they will provide power to customers and the proposed FirstEnergy ESP seeks to further increase electricity costs for residential consumers beginning June 2024 through spring of 2032; and

 

WHEREAS, ESP’s have historically been used as a tool by electric utility companies to facilitate more rate increases in between traditional rate hikes, providing more security for the utility company than for consumers; and

 

WHEREAS, The Ohio Consumers’ Counsel (OCC), our state’s advocate for residential utility consumers, supports Ohio Senate Bill 143 to ban ESP rate hikes, and vehemently opposes the proposed FirstEnergy rate increase during this time when Ohioans are already facing financial difficulties due to inflation and higher energy prices; and

 

WHEREAS, the residents of northwest Ohio, and specifically Toledo, Ohio have historically been burdened with paying higher electricity rates that negatively impact our economic development and our ability to attract employers and companies to our city; NOW, THEREFORE,

 

                     Be it resolved by the Council of the City of Toledo:

 

                     SECTION 1.  That the City Council does hereby declare its intent to urge the Public Utilities Commission of Ohio (PUCO) to rule against FirstEnergy Corporation’s Ohio distributors proposed rate increase.

 

                     SECTION 2.  That this Resolution hereby is declared to be an emergency measure and shall be in force and in effect from and after its adoption.  The reason for the emergency lies in the fact that this resolution needs to be submitted to the Public Utilities Commission of Ohio prior to their October 7th hearing, and that the same is necessary for the immediate preservation of the public peace, health, safety and property.

 

Vote on emergency clause:  yeas 12, nays 0.

 

Adopted:  October 10, 2023, as an emergency measure:  yeas 12, nays 0.

 

Attest:                                          

Gerald E. Dendinger                                          Matt Cherry

Clerk of Council                                          President of Council

 

Approved:                                                               October 10, 2023

Wade Kapszukiewicz

Mayor