Ohio’s energy landscape is undergoing major changes as state regulators and lawmakers take decisive action affecting FirstEnergy customers and the future of local power generation.

PUCO Slashes FirstEnergy Rate Request

The Public Utilities Commission of Ohio (PUCO) has sharply reduced FirstEnergy’s bid to raise electric distribution rates. The company sought a $190 million boost, but regulators approved only $34 million in revenue adjustments. Under the decision, Ohio Edison and Toledo Edison must lower revenues, while Cleveland Electric Illuminating (CEI) will receive a modest increase. PUCO officials said the ruling ensures FirstEnergy remains accountable for delivering reliable service at fair prices.

$180 Million Refunds + $70 Million Penalty After HB 6 Scandal

In a separate action, PUCO also ordered FirstEnergy’s three Ohio utilities to refund nearly $180 million to customers. Regulators found the company improperly handled ratepayer funds—violations tied to the fallout from the $60 million House Bill 6 bribery and corruption scandal.

Customers will receive credits across three billing cycles, with exact amounts varying by account. FirstEnergy must file the credit calculations later this month.
Beyond the refunds, the utilities were hit with a $70.1 million civil forfeiture for breaking state law and commission rules.

Ohio House Advances Community Energy Pilot Program

Lawmakers are pushing forward on a new approach to local power generation. The Ohio House has passed House Bill 303, creating a Community Energy Pilot Program designed to add up to 1,500 megawatts of small-scale energy projects across the state. The plan prioritizes solar, wind, and natural-gas projects built on brownfields and distressed properties.

Supporters say the program will strengthen the grid, stimulate local investment, and keep more energy dollars within Ohio communities.

The bill now moves to the Senate for consideration.