Particle.news
Download on the App Store

Supreme Court Lets Ruling End Ohio Utility 'RTO Adder,' Clearing Path to $400 Million in Savings

Ohio's mandate to join a regional transmission organization meant the add-on no longer functioned as an incentive.

Overview

  • On Nov. 12, the U.S. Supreme Court declined utilities’ appeal, leaving the Sixth Circuit’s January decision in place.
  • The Ohio Consumers’ Counsel estimates more than $400 million in bill reductions through 2031 from removing the 0.5% transmission surcharge.
  • FirstEnergy and Duke customers are set to receive refunds for charges collected since February 2022, with timing still to be determined.
  • AES Ohio never received permission to levy the fee and FERC blocked AEP Ohio from collecting it in December 2022, so their customers will not get refunds.
  • FERC established the RTO adder more than two decades ago to promote voluntary RTO membership, but the court found Ohio’s mandatory participation undermined its rationale.