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FirstEnergy Ohio Utilities Withdraw Change to Eliminate Switch Fee Exemption; File Tariff to Offer Bill Ready Billing

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Ohio Edison, Toledo Edison, and Cleveland Electric Illuminating have filed revised supplier tariffs with the Public Utilities Commission of Ohio to, among other things, withdraw their previous request to eliminate the current initial switching fee waiver, and to offer bill ready utility consolidated billing.

As only noted in Matters (9/11/09), the FirstEnergy Ohio companies filed revised tariffs with PUCO in September 2009 to eliminate the current waiver of the otherwise applicable $5 switching fee, which is not charged for the customer's initial switch from bundled service to competitive supply.

The FirstEnergy companies have withdrawn this proposal in their latest tariff filings. The switching fee will not be charged for the customer's initial switch to competitive supply, and also will not be charged to any accounts associated with governmental aggregation.

The FirstEnergy utilities have also proposed to offer retail suppliers the option of bill ready utility consolidated billing in addition to the rate ready option.

Other changes in the revised supplier tariff formalize the current credit practices used for supplier registration, including making the $250,000 initial credit amount explicit in the tariff. The applicable FirstEnergy operating company, "shall adjust the [credit] amount required commensurate with the financial risks placed on the Company by an EGS [electric generation supplier], including required recognition of an EGS's performance."

The option to use a surety bond for credit would be removed from the tariff under the changes. The revised tariff also includes an explicit limit on unsecured credit, which a supplier may receive by meeting certain credit ratings criteria, equal to a 5% of a supplier's tangible net worth.

The updated tariff also requires additional information to be included in customer lists, including:

- PLC value (capacity peak obligation)

- Effective date of PLC value

- NSPL value (transmission peak obligation)

- Effective date of NSPL value

The revised tariff also makes explicit the requirement that requested interval data provided to a supplier shall contain 12 months of data.

The newly filed tariff language states that, "[i]f a Certified Supplier wishes to obtain from the Company confidential Customer-specific information about a Customer with whom it is discussing the possibility of providing Competitive Retail Electric Service, the Company will only provide such information after receiving written Customer authorization from the requesting Certified Supplier."

The tariff also includes clearer delineation of Transmission and Distribution loss factors.

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