Ohio’s electric customers are set to receive long-awaited relief following a $249 million settlement between FirstEnergy and state regulators. The agreement, finalized by the Public Utilities Commission of Ohio (PUCO), will deliver millions in bill credits to residential users across the state.
This settlement is part of FirstEnergy’s effort to resolve ongoing regulatory proceedings tied to previous utility charges. Beyond customer refunds, the deal also allocates additional funding for low-income support and energy efficiency initiatives. For many households struggling with rising energy costs, this move brings temporary financial relief and a more stable rate outlook.
FirstEnergy’s $249 Million Settlement
The settlement affects customers of Ohio Edison, Toledo Edison, and The Illuminating Company. While short-term credits will immediately lower bills, long-term rate changes will vary by region, resulting in small increases or decreases once temporary credits expire.
The Public Utilities Commission of Ohio approved the $249 million settlement to address prior regulatory and rate-related issues involving FirstEnergy’s Ohio utilities. Under this deal, approximately $250 million will be distributed directly to customers through bill credits, in addition to $5 million for residential customers and $20 million dedicated to low-income programs.
According to PUCO Chair Jenifer French, “This settlement reflects a fair outcome for customers while ensuring accountability and transparency moving forward.”
Key Features of the Settlement
| Category | Amount / Detail |
|---|---|
| Total Refund to Customers | $249 million |
| Additional Residential Credits | $5 million |
| Low-Income Assistance & Energy Programs | $20 million |
| Utilities Affected | Ohio Edison, Toledo Edison, The Illuminating Company |
| Implementation Period | Throughout 2026 |
Eligibility Rules
All residential customers of FirstEnergy’s Ohio utilities are eligible for credits, including those currently enrolled in payment assistance or energy-saving programs. Business and commercial accounts may receive proportional credits based on usage.
Low-income households will automatically qualify for additional aid through expanded assistance programs funded by the settlement.
Benefits of the Settlement
The immediate benefit comes in the form of temporary bill credits distributed over approximately three months in 2026. Customers using around 1,000 kWh per month can expect the following:
- Toledo Edison: About $65.61 total credit (roughly $21.87 per month).
- Ohio Edison: Approximately $13–$20 per month in credits.
- The Illuminating Company: Smaller but similar credits distributed evenly over the same period.
Energy policy analyst Michael Turner notes, “This is a welcome short-term win for consumers. While it doesn’t completely erase rising energy costs, it offers real relief for Ohio households.”
Payment and Processing Details
The credit distribution and rate adjustments are expected to appear on bills during the 2026 billing cycles. Here is a detailed breakdown:
| Utility Company | Temporary Credit (Approx.) | Long-Term Rate Impact | Credit Duration |
|---|---|---|---|
| Toledo Edison | $65.61 total | $3.08 decrease/month (post-credits) | 3 months |
| Ohio Edison | ~$60 total | $2.42 increase/month | 3 months |
| The Illuminating Company | ~$55 total | $13.69 increase/month | 3 months |
All credits will appear as line items on monthly billing statements. The changes affect distribution and delivery charges, not the electricity generation portion of bills.
Comparison and Extra Insights
| Category | Before Settlement | After Settlement (2026) |
|---|---|---|
| Average Monthly Bill (Ohio Edison, 1000 kWh) | $142.00 | $139.58 |
| Average Monthly Bill (Toledo Edison, 1000 kWh) | $145.00 | $141.92 |
| Average Monthly Bill (The Illuminating Company, 1000 kWh) | $150.00 | $163.69 |
| Low-Income Assistance Programs | Limited | Expanded to $20 million support fund |
Consumer advocate Lisa Reynolds says, “The most important aspect of this settlement isn’t just the refunds, it’s the sustained funding for programs that help lower bills for those most in need.”
Recent Updates
- January 2026: PUCO formally approved the settlement.
- March 2026: Implementation expected to begin, with credits appearing on monthly statements.
- June 2026: Temporary credits expected to conclude; long-term rate adjustments take effect.
The settlement also sets the stage for future transparency measures, requiring FirstEnergy to provide clearer reporting on utility charges and public communications.
Why This Settlement Matters?
The FirstEnergy settlement brings short-term financial relief and long-term regulatory stability to millions of Ohioans. For families burdened by inflation and rising utility costs, this refund offers meaningful savings.
Energy economist Dr. Sarah Connelly explains, “While this isn’t a rate freeze, it stabilizes distribution costs and provides tangible support to low-income households through targeted programs.”
This agreement also signals increased oversight of utility companies in Ohio, ensuring that future rate adjustments are transparent and justified.
FAQs
When will customers start receiving credits?
Credits will begin appearing on bills around March 2026 and continue for approximately three months.
Will my electricity supplier or generation rate change?
No, the settlement affects distribution and delivery charges only, not the cost of power supply from your chosen energy provider.
Do I need to apply for the credit?
No application is required. Eligible customers will automatically receive the credits on their bills.
What happens after the credits end?
Once the credits expire, small rate adjustments will take effect; some customers will see slight decreases, others minor increases, depending on the utility.
How can low-income households access additional assistance?
Funds will be distributed through existing energy assistance and weatherization programs managed by FirstEnergy and PUCO partners.
