FirstEnergy Corp's Ohio utilities are preparing to submit a three-year distribution rate proposal to the Public Utilities Commission of Ohio (PUCO) by May 22, a filing that could increase average residential bills by approximately $4 to $5 per month each year. This marks one of the first major tests of Ohio's new forward-looking ratemaking system, which allows utilities to price anticipated grid investments rather than seeking reimbursement for completed work.
The plan covers The Illuminating Company, Ohio Edison, and Toledo Edison, and targets roughly $800 million annually for infrastructure upgrades including poles, wires, equipment, and technology. An additional $83 million per year is earmarked for tree trimming, which FirstEnergy identifies as the leading cause of outages in Ohio.
For a typical residential customer using 1,000 kilowatt-hours per month, the proposed increases vary by utility: Ohio Edison customers would see a 2.2% hike, or $4.26 per month; Illuminating Company customers would face a 2.6% increase, or $5.15 per month; and Toledo Edison customers would experience a 2.8% rise, or $5.30 per month. These figures are based on customers remaining with the default supply rather than switching to a third-party provider.
The filing comes on the heels of recent storm-cost adjustments and refunds. In February, PUCO directed the three utilities to extend repayment of roughly $245 million in deferred storm-restoration costs over 25 years instead of five, trimming annual revenue by about $39.4 million compared to a previous approval. Customers have already seen bill adjustments from March 1: Illuminating Co. bills rose $9.67, Ohio Edison's increased 87 cents, while Toledo Edison bills fell by $5.05.
Torrence Hinton, president of FirstEnergy Ohio, described the plan as "careful and balanced planning," emphasizing projects that "make the biggest difference" while keeping costs in check. The proposal lands amid ongoing scrutiny of FirstEnergy's regulatory track record. In November 2025, PUCO imposed $250.7 million in penalties and refunds on the utilities for grid-modernization charge violations, with Chair Jenifer French calling it a "cautionary lesson."
Separately, in January, PUCO approved a $275 million settlement covering restitution and refunds for customers, including $250 million in direct payments, $5 million in residential credits, and $20 million for low-income assistance, weatherization, and energy efficiency.
The rate plan is not the only one under review. AES Ohio, a subsidiary of AES Corp, filed a three-year rate proposal in November covering 2027-2029, and Duke Energy Ohio has indicated it plans to request a distribution-rate hike. The PUCO process involves staff reviews, public hearings, customer input, and annual audits, meaning final approved amounts may differ from initial requests.
FirstEnergy's first-quarter earnings are due after the bell on April 28, with a management call the following morning. Investors and regulators will be closely watching the Ohio rate plan ahead of the May 22 deadline.
