Akron manufacturing client on Ohio Edison Schedule GS-3. Bills show Distribution Investment Rider (DIR) of $0.00892/kWh. PUCO Case 20-1629-EL-RDR approved this but the rate seems excessive compared to other FirstEnergy territories. Pennsylvania is only $0.00634/kWh.
FirstEnergy distribution investment rider - Ohio
Bob - Ohio has higher distribution investment costs due to aging infrastructure. The DIR covers smart grid upgrades and storm hardening. Rate is reviewed annually by PUCO.
I audit both Duke Energy Ohio and AEP Ohio. Their distribution riders are similar to FirstEnergy. Ohio just has higher infrastructure costs than neighboring states.
Distribution investment riders vary significantly by state based on infrastructure needs and regulatory policy. The key is ensuring the utility is following PUCO-approved calculations and not over-recovering costs.