Centerior setsrate reduction
Cleveland Electric Illuminating Co. (CEI) and Toledo Edison (TE) have received approval of a rate plan that will provide the largest utility rate reduction in Ohio`s history. Implementation of the rate decrease is contingent on approval of a proposed merger between Centerior Energy and Ohio Edison to form FirstEnergy.
The plan, proposed by the Ohio Consumers` Counsel and Centerior Energy, parent company of CEI and TE, will reduce rates by nearly $500 million, or $536 per individual household. The Public Utilities Commission of Ohio approved the plan, which prohibits FirstEnergy from filing a rate increase before 2006.
Centerior Energy and Ohio Edison must receive federal regulatory approval of the proposed merger before the rate decrease can be implemented. The rate plan offers benefits to consumers through 2006 but does not prohibit changes in the electric industry such as municipalization or competition among electric providers.