FirstEnergy faces new criticism over failed plan

February 20, 2010 at 12:00a.m.

AKRON (AP) — FirstEnergy Corp. is fending off new criticism over an abandoned plan to automatically distribute energy-saving light bulbs to its customers and charge them more than the cost of the bulbs.

The parent company of Ohio Edison wants to pass along to consumers $772,000 in costs related to the scrapped program, drawing the ire of a state consumer watchdog.

“Collecting costs for a failed program that provides no tangible benefits for residential consumers cannot be allowed,” said Ohio Consumers’ Counsel Janine Migden-Ostrander.

Objections filed by Migden Ostrander this week will be considered by regulators at a March 2 hearing, Shana Eiselstein, a spokeswoman for the Public Utilities Commission of Ohio, said Friday.

Akron-based FirstEnergy had intended to mail two compact fluorescent light bulbs to each of its customers. It dropped the plan last fall after it was revealed that the company planned to add a $21.60 surcharge to electric bills for the bulbs, which cost $3.50 to buy and distribute. Lawmakers called for a moratorium amid an uproar from consumers.

FirstEnergy came back in December with a revised three-year energy-efficiency plan that would allow consumers to take light bulbs from the company voluntarily. It also proposed that costs associated with the original bulb program — including $427,000 for marketing, $120,000 in storage fees and $225,000 in administrative costs — be paid for by customers.

“We believe the costs are fair, accurate and were appropriately incurred until the program was suspended,” said Ellen Raines, a FirstEnergy spokeswoman. “The law allows the company to request recovery for those costs, which we have.”

Raines noted that the program was approved by regulators.

The law permits certain costs to be recovered, but only if consumers stand to benefit, and that’s not the case, maintained Anthony Rodriguez, a spokesman for the Ohio consumer’s counsel.

If FirstEnergy’s revised plan is approved by the public utilities commission, light bulbs could be distributed to consumers who want them this spring.