FIRSTENERGY CORP. Ruling would allow application for higher rates
Consumer advocate protests because of high utility costs in northern Ohio.
COLUMBUS (AP) -- FirstEnergy Corp. would be allowed to apply for higher electricity rates if the cost of its fuel increases under a ruling Wednesday by state regulators.
The Public Utilities Commission of Ohio modified its June 9 order that the Akron-based utility accept bids for electric power beginning next year. FirstEnergy, the Ohio Consumers' Counsel and other customer groups asked the PUCO for a rehearing in the case.
State regulators authorized power suppliers to bid to provide electricity to FirstEnergy Corp. customers. If competitors cannot beat FirstEnergy's price by January, the company will be allowed to freeze rates for three years in exchange for a customer fee, estimated at $15 for an average monthly bill.
The commission's modification allows FirstEnergy to apply for adjustments in fuel costs it passes on to customers. If customers buy energy from a different supplier, they would not pay for the adjustment, the commission said. The commission in its June order had denied FirstEnergy's plan to adjust its fuel charge.
Reaction
Consumers' Counsel Janine Migden-Ostrander, whose office represents residential customers in rate cases, said she was disappointed that the commission allowed FirstEnergy to apply for fuel-charge adjustments.
"Residents of northern Ohio already have the highest rates in the state," she said.
FirstEnergy spokeswoman Ellen Raines said the company would have no comment until it has reviewed the order.
Meanwhile, company's Davis-Besse nuclear power plant reactor unexpectedly shut down Wednesday during testing, marking the first problem for the plant since it resumed generating electricity at full capacity in April after being shut down for two years.
No workers were in danger, and two U.S. Nuclear Regulatory Commission inspectors were present when the shutdown occurred, said NRC spokesman Jan Strasma.
Todd Schneider, spokesman for FirstEnergy Corp., which owns the plant, said the cause of the shutdown was unknown.
"It's looking like it could be related to some routine testing that was being conducted at the time," he said.
Strasma said there was a routine surveillance test being conducted on one of four reactor trip circuit breakers. He said the circuit breaker shuts down the reactor as a safety precaution.
"All plant safety systems functioned normally," Strasma said.
Schneider said the reactor was expected to be restarted within a few days.
The plant along Lake Erie in northern Ohio was closed in February 2002 for routine maintenance. A month later, inspectors found corrosion on the reactor. Leaking boric acid had eaten almost through a 6-inch-thick steel cap. The damage led to a review of 68 similar plants nationwide.
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