Update: On November 14, 2016, OMAEG submitted an application for rehearing of the PUCO’s Fifth Entry on Rehearing adopting Rider DMR, which will collect from customers approximately $132.5 million per year, adjusted for recovery of taxes, for a total of three years, with a possible extension of two additional years. In its application or rehearing, OMAEG asserts that the PUCO erred in approving Rider DMR given it is an unlawful subsidy and corporate bailout of FirstEnergy Corp. and fails to incentivize grid modernization. Further, OMAEG asserts that Rider DMR is an unlawful transition charge in violation of PUCO regulations and recent precedent. Other groups also filed applications for rehearing, several of which were supportive of OMAEG’s arguments.
FirstEnergy argues in its application for rehearing that the PUCO should adopt its proposed modifications to Rider DMR, including, extending the term of Rider DMR to eight years; adding a value to Rider DMR to account for the economic development impact of maintaining the corporate headquarters in Akron, Ohio; using a CFO to debt ratio of 15%; using a three-year average of CFO to debt ratio in calculating Rider DMR; assigning an allocation factor of 34% to 40% for Rider DMR; and extending the exclusion of Rider DMR revenues from the SEET calculation for the potential extended term of Rider DMR. Additionally, FirstEnergy asserts that the PUCO erred in permitting customers who may benefit from participating in the Rider NMB pilot program to work with Staff and FirstEnergy to determine if such participation is appropriate. Memorandum contra applications for rehearing are due on Friday, November 25th.
