Press Release

PUC Finalizes Settlement with FirstEnergy that Includes $200,000 Contribution, Restitution to Some Customers over Terminations

Published on 12/3/2009

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement with FirstEnergy that includes a $200,000 contribution and restitution for some customers, ending an informal investigation into terminations that occurred between Aug. 11, 2008, and Aug. 26, 2008.

The Commission voted 3-2 to direct the company to pay a $175,000 contribution to the Dollar Energy Fund and $25,000 to FirstEnergy’s Low Income Usage Reduction Program (LIURP).  Dollar Energy is a non-profit organization that provides financial assistance to customers who are on a low or fixed income.  LIURP helps reduce household electric use through weatherization and education.

Also as part of the settlement agreement, FirstEnergy agrees to credit within 30 days each unlawfully terminated customer $50-$200 to their accounts depending on the length of their terminations.  Under the proposed settlement, FirstEnergy also agrees not recover the costs of the settlement from its ratepayers.

On Oct. 29, 2008, the PUC’s independent Prosecutory Staff initiated an informal investigation into FirstEnergy’s handling of 492 unlawful terminations that occurred between Aug. 11, 2008, and Aug. 26, 2008.  It was determined that due to a computer system malfunction, FirstEnergy failed to properly deliver the 10-day notice of terminations required by law under Chapter 14 of the Public Utility Code.  In addition, 446 of the 492 terminations were unable to be reached in the required 3-day notice of termination.  The accounts terminated were located in the Pennsylvania Electric Co. (Penelec), Metropolitan Edison Co. (Met Ed) and Pennsylvania Power Co. (Penn Power) territories.

If the matter had been litigated, Prosecutory Staff would have contended that FirstEnergy violated certain sections of the state’s Public Utility Code and the Commission’s regulations while FirstEnergy would have contested the matter.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. M-2009-2112849

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