FirstEnergy Corp.’s Ohio distribution subsidiaries – The Illuminating Company, Ohio Edison and Toledo Edison – have filed a Three‑Year Rate Plan (TYRP) with the Public Utilities Commission of Ohio (PUCO) that will be submitted by May 22. The plan outlines a $800 million annual investment in infrastructure upgrades and $83 million for tree trimming, aimed at improving reliability while keeping distribution‑rate increases modest.
The plan projects average annual bill increases of 2.2% ($4.26 per month) for Ohio Edison, 2.6% ($5.15 per month) for The Illuminating Company and 2.8% ($5.30 per month) for Toledo Edison, based on a typical residential load of 1,000 kWh per month. The increases apply only to the distribution portion of the bill and exclude supply costs, ensuring customers see a clear link between the plan’s investments and their monthly charges.
The filing is made under Ohio’s new legislation that allows utilities to set distribution rates using forward‑looking three‑year plans, replacing the previous cost‑based rate‑setting framework. The legislation is designed to give regulators and customers greater predictability and to align rate recovery with planned capital expenditures.
FirstEnergy’s electric distribution companies serve roughly six million customers across Ohio and neighboring states. The company recently secured a $275 million settlement with PUCO to resolve investigations related to the House Bill 6 scandal, and a November 2025 base‑rate case order that clarified rate base, return‑on‑equity and storm‑restoration cost recovery. The TYRP is part of a broader $36 billion Energize365 program that will run through 2030.
Torrence Hinton, President of FirstEnergy Ohio, said the plan is built on careful, balanced planning that prioritizes reliability and affordability. He added that recent upgrades have demonstrated what works best, and that the three‑year plan focuses on the work that will make the biggest difference while keeping costs in check and clearly explaining what customers are paying for.
Analyst coverage has noted the regulatory context, with Jefferies raising its price target to $52 from $50 while maintaining a Hold rating, citing the company’s improved regulatory outlook ahead of its first‑quarter 2026 earnings call.
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