AARP Criticizes PUCO's First Energy Ruling as a Corporate Bailout Funded by Ohio Consumers and a Dangerous Precedent

Rider ignores benefits competitive energy market brings Ohio consumers and businesses; harmful to financial security of all Ohioans

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AARP Ohio

Oct 12, 2016, 10:05 ET

COLUMBUS, Ohio, Oct. 12, 2016 /PRNewswire/ -- Trey Addison, Associate State Director of Advocacy for AARP Ohio issued a statement today in response to the Public Utilities Commission of Ohio's (PUCO) decision to accept a First Energy rider that could result in $1 Billion in additional fees to Ohio's consumers over the next three to five years:

AARP Ohio issues statement in response to PUCO's final ruling on First Energy case.

"It is unfortunate PUCO has decided that Ohioans should subsidize the failing business model of First Energy. This creates a terrible precedent by PUCO and others to bailout companies threatening to leave the state, on the backs of the people that work hard and pay their bills every month. Not only will the increase disproportionately impact consumers with low and fixed incomes, it negates any benefits a more competitive energy market brings to businesses and consumers – including lower wholesale energy prices.

Even though this is cloaked in grid modernization, the reality is it is a simple income transfer or corporate giveaway. Noticeably absent in the rider is any language that prevents First Energy from using the bonus funds generated for anything other than grid-modernization. We anticipate that this deal may be voided by the courts or FERC as interfering with the wholesale market and picking winners and losers. AARP intends to continue advocating for transparency in rate-making and utility costs on behalf of our 1.5 million Ohio members and their families."

AARP is a nonprofit, nonpartisan organization, with a membership of nearly 38 million, that helps people turn their goals and dreams into real possibilities, strengthens communities and fights for the issues that matter most to families such as healthcare, employment and income security, retirement planning, affordable utilities and protection from financial abuse. AARP has staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Learn more at www.aarp.org.

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SOURCE AARP Ohio