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Ohio Supreme Court declares FirstEnergy's grid fee illegal

Homeowners using an average of 750 kilowatt-hours of electricity a month pay $30 more a year to cover the cost.
Credit: FirstEnergy

COLUMBUS, Ohio (AP) — The Ohio Supreme Court has rejected a 2017 decision by state utility regulators that allowed FirstEnergy to charge an additional fee to be spent toward modernizing the electric grid.

In a 4-3 decision Wednesday, the court sided with environmental and consumer groups that had challenged the so-called distribution modernization rider to FirstEnergy's rate plan.

The temporary additional charge has generated between $204 million and $168 million annually since 2017. Homeowners using an average of 750 kilowatt-hours of electricity a month pay $30 more a year to cover the cost.

The court said it was "wishful thinking" by the Public Utilities Commission of Ohio staff to assume the money would be used as intended, when no "real requirements, restrictions, or conditions" were imposed.

A spokesman said FirstEnergy is evaluating its options.

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