YOUNGSTOWN — The Public Utilities Commission of Ohio has approved a request from FirstEnergy Corp., allowing the company to sell low-interest AAA-rated bonds, a move the company says will help pay down deferred costs and slightly reduce its customers’ monthly bills.
FirstEnergy, which operates Ohio Edison, the Illuminating Co. and Toledo Edison, will use the initial bond sales to curb $555 million worth of deferred costs that it passes on each month in small increments to its customers.
Those costs stem from old projects, fuel costs, power purchased on the open market and discounts the company provides, like those going to customers who use nothing but electricity for all their power needs, company officials said.
Typically, Ohio Edison customers see those deferred costs as a line-item on their monthly bills, said Doug Colafella a FirstEnergy spokesman.
Though it is unclear when the company will begin selling the bonds, Colafella added that Ohio Edison customers will see a slight decrease when they are issued, with the line-item going from $3.46 a month to about $3.20, a savings of 26 cents per month.
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