Ohio Edison Rate Proposal Worth Watching

Ohio Edison Co. has asked the Ohio Public Utilities Commission (PUC) to reduce rates and cap base rates until 2006, thereby extending its present rate freeze for an additional 10 years. The plan, which is supported by the Office of Consumers' Counsel and the Industrial Energy Users-Ohio, would decrease base rates, currently frozen at 1990 levels, by almost $600 million over the next 10 years. Residential and small business rates would decrease by $1 a month until January 1, 2001, and by $1.50 per month thereafter. Major industrial and commercial customer rates would decrease based on electric use. In 2006, rates for all customers would be cut by about 20 percent, or $300 million annually, below current levels. Plan rates would not be affected by future Edison plans to build new plants, remove or retire generating plants from service, or purchase bulk power.