Reject FirstEnergy’s So-Called ‘Distribution Modernization’ Rider!

This week, OMA’s energy counsel Kim Bojko of Carpenter Lipps & Leland presented oral argument to the Supreme Court of Ohio urging the court to reject a customer-paid ‘distribution modernization’ rider that the PUCO approved in 2016.

Bojko argued that the PUCO’s decision was in error because the rider was used to shore up FirstEnergy’s finances, not to support grid modernization.

“Don’t let the name fool you. This rider has nothing to do with the distribution service or modernizing the grid,” said Bojko. She emphasized the point, saying, “Not one penny is to be spent on distribution. Instead it is a credit support rider.”

The court’s decision is expected mid- to late 2019. In the meantime customers in FirstEnergy service territory will continue paying this rider, even those who purchase power from a competitive supplier. Customers have already paid approximately $372 million for the first two years of this rider.

This work is supported by the OMA Energy Group; learn more here. 1/10/2019