Update: In FirstEnergy’s 2009 SSO order, the Commission authorized CEI to defer and recover as a regulatory asset its power costs and related carrying charges through a Deferred Generation Cost Recovery Rider (Rider DGC).  The rider was for recovery of uncollected purchase power costs for the time frame January 1, 2009, through May 31, 2009.  Full recovery of the deferred costs associated with this rider is expected to occur by approximately 2021.  In its May 25, 2011, Order in Case No. 10-176-EL-ATA, the Commission authorized Ohio Edison and CEI to defer and recover as a regulatory asset the costs and associated carrying charges associated with the transition of all electric customers toward market pricing beginning in 2011.  This recovery was to be accomplished through a Residential Electric Heating Recover Rider (Rider “RERl”) with full recovery of the deferred costs associated expected by approximately June 2014.

On May 3, 2012, as amended, FirstEnergy filed an application seeking authority to recover Phase-In Costs and financing costs, issue PIR Bonds, and impose and collect Phase-In-Recovery Charges.  Through the application. FirstEnergy requested authority to establish a new Phase-In-Recovery Rider (Rider PIR) in order to recover securitized costs associated with its existing riders (i.e., DFC, DGC, and RERl).  Once the Rider PIR is approved and effective, Riders RERl, DGC, and DFC will be withdrawn.  All of these existing riders for which there are uncollected balances constitute Phase-In Costs to be financed through the proposed securitization in this case.  FirstEnergy also requested authority to develop a revenue requirement for Rider PIR based on the securitization costs of each company’s special purpose entity (SPE).  The allocated revenue requirement is to be divided by the expected kWh sales in order to arrive at proposed Rider PIR rates.  Once approved, the rates will be included in the EDUs tariff and will remain in effect until the next scheduled update.  On October 17, 2012, the Commission approved the securitization finding that such securitization will result in a cost savings of approximately $104,000,000.  Customers will have an estimated Phase In Recovery Charge of 0.3851¢/kWh for CEI, .3198¢/kWh for Ohio Edison and .0250¢/kWh for Toledo Edison.