FirstEnergy avoids hefty fines

> Jan 07 - Akron Beacon Journal (Akron, Ohio)
>
> FirstEnergy Corp. on Thursday was granted a waiver by the Public
> Utilities Commission of Ohio for not meeting its 2009 state-mandated
> energy efficiency benchmarks.
>
> The utility had said a failed program to distribute nearly 4 million
> energy-efficient light bulbs that sparked controversy last fall and
> was delayed by the PUCO did not allow it to meet the benchmarks. The
> Akron-based utility also said the commission's rules about how
> companies could meet those benchmarks were not yet approved when it
> applied for the waiver in October.
>
> With the waiver, the utility avoided hefty fines from the commission.
>
> A coalition of consumer and environmental groups, including the Ohio
> Consumers' Counsel, the National Resources Defense Council (NRDC) and
> Citizen Power had objected to First-Energy's request for the waiver,
> saying they believed FirstEnergy's failure to meet the benchmark was
> because of "insufficient efforts to comply with the law."
>
> The groups had asked the PUCO not to give FirstEnergy the waiver, but
> if the commission did grant it, to make sure the utility would have to
> make up the cumulative energy savings in future years.
>
> The commission agreed, granting the waiver at its meeting Thursday,
> but saying it was contingent upon FirstEnergy meeting the revised
> benchmarks within three years. The commission said it would determine
> the new benchmark levels as it considers the utility's three-year
> energy efficiency plan, which is pending before the commission.
>
> FirstEnergy spokeswoman Ellen Raines said the company was pleased with
> the waiver.
>
> "We intend to comply with the revised benchmarks through implementing
> programs outlined in our recently filed three-year plan and are
> hopeful that the commission will approve that filing so that we can
> begin offering our customers the opportunity to save energy and
> money," she said.
>
> Ohio Consumers' Counsel Janine Migden-Ostrander said she and other
> advocates did not think FirstEnergy should get a waiver, but said she
> was pleased that the commission required FirstEnergy to make up the
> energy savings.
>
> "That's really the most important factor, that we get the most energy
> efficiency," she said.
>
> Migden-Ostrander said she hopes the commission will require
> FirstEnergy to fully comply with the revised benchmarks and all of the
> savings they did not reach in 2009.
>
> "We don't think there should be any further breaks given to
> FirstEnergy,"
> she said.
>
> FirstEnergy was criticized in October after announcing it would
> distribute two compact fluorescent bulbs, called CFLs. They use up to
> 75 percent less electricity than traditional bulbs and can last up to
> 10 times longer and were to be distributed door to door in a mandatory
> program.
>
> The company planned to recoup the cost and resulting loss of energy
> use with bills to customers of about 60 cents a month for three years,
> or $21.45.
>
> The company eventually postponed the program after the PUCO and Gov.
> Ted
> Strickland reacted to public outcry and called for a moratorium. The
> company then consulted with what was called a collaborative group
> representing customers to come up with a revised program.
>
> In December, the utility included a voluntary CFL bulb program in its
> three-year plan.
>
> Details are still being worked out on that plan as well as others,
> including home energy audits at a reduced price, the expansion of a
> free thermostat program and rebates to builders to enhance
> construction of energy- efficient homes.
>
> Regulated, investor-owned utilities such as FirstEnergy must reduce
> energy usage by 22.2 percent by the end of 2025 and reduce peak demand
> by
> 7.75
> percent by the end of 2018.
>
> The law required the utility to take action in 2009.
>
> Betty Lin-Fisher can be reached at 330-996-3724 or blinfisher@
> thebeaconjournal.com.
>
>