FIRSTENERGY Coalition asks state regulators to hear arguments against plan

COLUMBUS (AP) -- A coalition of consumer groups, energy suppliers and business groups asked state regulators to hear their arguments against a plan by FirstEnergy Corp. to ensure rate stability in return for a fee.
The city of Cleveland was joined by two groups that buy power in bulk for communities, five power suppliers, two trade groups and the Ohio Consumers' Counsel in asking the Public Utilities Commission of Ohio on Monday to hear oral arguments in the case on April 26.
FirstEnergy has asked the commission to rule in its rate case by the end of April. The PUCO could accept the FirstEnergy plan, reject it or modify it.
The utility, which is the parent company of Ohio Edison and other electricity providers in northern Ohio, wants PUCO to approve the charge once the market for electricity opens in its service area.
The charge, $15 for an average bill, would be levied in exchange for a generation rate freeze for FirstEnergy customers. Those who switch suppliers originally would have received a 65 percent credit for the charge on their bills, but FirstEnergy upped that to 100 percent in a February filing. Customers who switch back, however, would pay the market price.
Consumers' Counsel Janine Migden-Ostrander, whose office represents residential customers in rate cases, said the rate plan would lead to higher, more volatile rates while eliminating chances for customers to save by switching providers or buying in bulk. She said the plan could lead to rate increases up to 50 percent by 2008.
The commission will consider the coalition's request, PUCO spokeswoman Shana Gerber said.