EXHIBIT 99
FirstEnergy Corp.
Comparison of Proposed Rate Stabilization Plan versus Current Restructuring Plan
Current Plan Rate Stabilization Plan Section
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Generation Rate o Frozen Through 2005 o Frozen through 2005
("little g") o Then market-based o Effective 1/1/06, generation charge by tariff, shall equal II.1 & I.5
"little g" in effect as of 12/31/05 plus any riders or
charges implemented.
o Beginning 01/01/06 and thereafter, may be adjusted,
with Public Utilities Commission of Ohio (PUCO) approval,
within certain limits for actual net cost increases above
the 2002 reference year for:
o an increase in the costs of fuel, including emission
allowances consumed, lime, stabilizers and other
additives, fuel disposal; nuclear security; and
environmental costs, including the cost of capital during
new construction. Nuclear security, fuel disposal and/
or environmental costs increases may be recovered only if
they are mandated by-law regulation or court order,
o an increase in regulatory costs incurred on or after
1/1/06 and mandated by law, regulation or administrative
or court order, and
o an increase in taxes.
o The actual net cost increases may be deferred for
recovery through the Extended RTC.
Residential o 5% reduction on generation o The prior 5% generation rate credit will be flowed to I.12,
Customer Generation rates ("big G" which includes residential customers:
Rate Reduction little g, the RTC and the o As a reduction to GTC from 1/1/04 to 12/31/05, then
GTC) through 2005 o As a reduction to RTC, then
(approximately $60 million o As a reduction to extended RTC
per year)
Monthly o Through the RTC collection o The prior monthly residential rate customer credits (OE - I.2
Residential period $1.50/month, CEI & TE - $5.00/month) will be flowed to
Customer Rate o OE - $1.50/month residential customers:
Credits o CEI & TE - $5.00/month o As a reduction to GTC from 1/1/04 to 12/31/05, then
o As a reduction to RTC, then
o As a reduction to extended RTC
Page 1 of 6
FirstEnergy Corp.
Comparison of Proposed Rate Stabilization Plan versus Current Restructuring Plan
Current Plan Rate Stabilization Plan Section
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Competitive o Effective 01/01/06, Company o A competitive bid process will be established to test the IV.1 - 4
Bidding Process shall provide a Standard generation price provided for under the Plan against market
Service Offer for generation prices. The PUCO may hold a hearing to determine if it
at market-based rates is in the best interest of all customers to accept the
results of the bidding process, giving consideration to
the fact that acceptance would terminate this Plan.
o No more often than annually, the PUCO may undertake or cause
the Companies to undertake a competitive bid for generation
service for the totality of the load within the respective
service areas of the Companies.
o Such bids must be sufficient to meet the supply requirements
for all customer classes of all of the Companies,
including customers served under special contracts and by
alternative suppliers.
o The bidding process shall cover a period commencing at
least 12 months after the PUCO's determination as to
whether or not to accept the results of such bidding process.
o The bidding process shall be established within 6 months
of the approval of this Plan (the process shall be similar to
that used in New Jersey).
Distribution o Frozen through 2007 o Frozen through 2007, except for additional revenues necessary I.6
Rates to recover net cost increases of complying with changes in
laws or regulations related to environmental, taxes, or in
event of rate emergency, or for increased costs for
reliability which may be deferred for recovery through the
Extended RTC.
Tariff Rate Riders o Rates can be adjusted to o Rates can be adjusted to reflect costs paid, incurred, or I.4
(e.g.,universal reflect costs paid, incurred, collected in connection with the universal service fund rider,
service fund, or collected the temporary energy efficiency rider, the state and local tax
energy efficiency, rider, and other riders or tariffs such as the right of way or
state and local line extensions tariffs.
taxes, etc.)
Transmission o Frozen through 2005 o Beginning 01/01/06, retail transmission, net congestion and I.7
Rates ancillary service charges or rates may be adjusted to reflect
applicable FERC approved charges or rates.
Generation o Through 2005 o Through 2005, less the monthly residential rate credits and II.2.a
Transition the residential customer generation rate reduction from
Charge (GTC) 1/1/04 to 12/31/05 as discussed on page 1.
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FirstEnergy Corp.
Comparison of Proposed Rate Stabilization Plan versus Current Restructuring Plan
Current Plan Rate Stabilization Plan Section
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Rate o Not applicable o Effective 01/01/06 the RSC will be a non-bypassable charge II.2.a,
Stabilization for usage through 12/31/08 or the termination date of this II.3, II.4,
Charge (RSC) Plan. II.9
o The RSC shall equal the charge previously attributable to
the unbundled GTC (before residential rate credits).
o In exchange for the payment of the RSC, the Companies
shall serve as the provider of last resort and bear the
risks, costs and assume the volatility associated with rate
and price certainty during the Plan period.
Regulatory o Through full recovery of RTC o The RTC for each of the Companies shall continue to be II.6
Transition costs effective through the earlier of when a certain level of kWh
Charge (RTC) o Company-specific kWh targets sales are attained by each Company or a specific date is
o Ends no later than 2010 reached for each Company.
o OE: Through 12/31/07
o CEI: Through 12/31/09
o TE: Through 12/31/08
o The RTC charge will be reduced effective 1/1/06 to reflect
continuation of the 5% generation rate credit and customer
charge credit for residential customers.
o The termination of this Plan shall not affect the
recovery of regulatory transition costs.
o Cannot be extended for economic conditions, sales levels or
shopping credit deferrals.
Extended o Not applicable o The RTC charge will be extended to recover the shopping II.8
Regulatory credit incentive deferrals and other deferrals created
Transition Charge pursuant to this Plan, but no later than 12/31/10.
(Extended RTC) o Termination of this Plan shall not affect the recovery
of regulatory deferred costs or the extended RTC charge to
customers as set forth in this Plan.
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FirstEnergy Corp.
Comparison of Proposed Rate Stabilization Plan versus Current Restructuring Plan
Current Plan Rate Stabilization Plan Section
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Shopping Credits o Offered at predetermined levels o Through 2005, the Companies waive the right to seek VIII.6 ,
(market-support prices from reductions in the shopping credits but credit for 2005 will II.2.b
original settlement) with be at the 2004 level.
incentives through 2005 o Commencing 01/01/06 through the earlier of the termination of
o Company has right to request the Plan or 12/31/08, shopping customers shall receive a credit
reduction in credits equal to their generation charge, including applicable riders
or charges
o The shopping credit shall be increased to include 65% of the
RSC for Government aggregators and commercial/industrial
customers that enter into full-service contracts with an
alternative provider prior to 12/31/04 for the period 1/1/06
through 12/31/08. If any customer returns to the Company for
service during the term of such contract, then the Company may
charge such returning customer current market prices for a
period of 6 months.
Deferred Shopping o Company defers incentives o Through 2005, the Companies defer shopping credit incentives II.9-10
Incentives and without carrying charges and for recovery through the extended RTC.
Other Plan later collects through o Effective 1/1/04 through 12/31/05, the Company shall defer
Deferrals extension of RTC the amount by which little "g" is less than the market support
o Shopping credits are the last prices used in determining customers' shopping credits
costs recovered o The Companies will begin, upon approval of this Plan, to
accrue and defer interest on the shopping credit incentive
deferral balances and other deferrals created by the Plan.
The interest rate shall be the overall cost of the
long-term debt for each Company.
Market Support o Through 2005 o If the Companies do not maintain at least 20% shopping by IV.4
Generation (MSG) class, as currently determined, then the Companies will
continue to make available for that class MSG up to the
amount required to be made available to that class under
the original rate stipulation, but not greater
than the amount needed to attain 20% shopping for such class.
o The Companies may make changes in the structure or
implementation of the MSG process to accommodate changes in
RTO requirements, if necessary.
o MSG will be offered at a price equal to 85% of the generation
charge for such customers but not lower than 1.5 cents per kWh.
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FirstEnergy Corp.
Comparison of Proposed Rate Stabilization Plan versus Current Restructuring Plan
Current Plan Rate Stabilization Plan Section
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Returning o Can return through 2005 o New customers and all customers returning to a Company's I.9, II.2.b
Customers generation service, shall be entitled to receive service
under this Plan as reflected in the Companies' respective
tariffs and the PUCO's current rules regarding minimum stay
and notice shall apply.
o Any Government aggregator or commercial/industrial
customers that entered a three-year full-service contract
with an alternate provider that returns to a Company's
generation service during the term of that contract may be
charged current market prices for a period of 6 months.
The Company may spread the excess charges over 12 months,
without interest for billing purposes at the customers'
option.
o A customer's ability to receive service shall not negate
liability on the part of any defaulting generation supplier.
Amortization o Mortgage-style amortization for o Upon approval of this Plan, the Companies shall change the II.7-8
Schedule GTC and RTC until company- amortization schedules for regulatory transition costs, not
specific KWH targets are including deferred shopping credit incentives and the other
reached deferrals created by this Plan, so that all regulatory
o Then amortize shopping transition costs will be fully amortized from 1/1/04 through
incentive deferrals specific date or sales levels.
o Amortization will reflect the use of the effective interest
(mortgage-style) amortization method.
o After completing full amortization of regulatory transition
costs, will begin amortization of shopping incentive and
other deferrals on a dollar-for-dollar basis as the
Extended RTC revenues are received.
o See Application Attachment 5 for amortization schedule to
be adopted 1/1/04 for regulatory transition costs, not
including shopping credit deferrals and other deferrals
created under this Plan.
Energy Efficiency o $5 million per year in grants o $5 million per year in grants through 2005 III.1
through 2005 o $1.25 million per year in grants from 2006 through 2008
o $2.0 million for OE unless the Plan is terminated early.
o $2.0 million for CEI o $0.5 million for OE
o $1.0 million for TE o $0.5 million for CEI
o $0.25 million for TE
Page 5 of 6
FirstEnergy Corp.
Comparison of Proposed Rate Stabilization Plan versus Current Restructuring Plan
Current Plan Rate Stabilization Plan Section
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Economic o Not applicable o Commencing 1/1/06 through 12/31/08, unless the Plan is III.2
Development terminated early, the Companies will make available up to
$5.0 million during the term of this Plan.
o $2.0 million for OE
o $2.0 million for CEI
o $1.0 million for TE
Early Termination o Not applicable o The Plan will remain in force until 12/31/08, unless the PUCO V.1
terminates the Plan early.
o The PUCO may determine to terminate this Plan early V.2
for any reason, effective as of any January 1, but not sooner
than 1/1/06.
o Acceptance of the results of the competitive bidding V.3
process shall terminate this Plan effective upon the date
that the Companies' customers commence to receive service
under the competitive bid process.
o Termination of this Plan shall not occur sooner than 12 V.4
months after the PUCO's decision to terminate the Plan.
o The termination of this Plan shall not affect the recovery II.6
of regulatory transition costs, including shopping credit
incentive deferrals or deferrals created pursuant to terms
of this Plan.
o The Companies may terminate the Plan if any generating units VI.1
currently owned by any of the Companies which in the
aggregate exceed 250 MWs are permanently shut down,
retired, or abandoned as a result of environmental
requirements, including a decision by the Companies
not to install or make environmental additions or changes.
o If the PUCO upon hearing, or any court of competent VIII.7
jurisdiction on appeal rejects all of any part of the Plan,
or otherwise modifies any of its terms, the Companies
shall thereafter have the right to withdraw and terminate
this Plan by giving written notice to the PUCO within 30
days of the order on rehearing or by the court.
Corporate o By 12/31/05 o The deadline for corporate separation plan will be extended VII.2
Separation until 12 months after termination of this Plan, unless
otherwise extended further by the PUCO, or until 12/31/08,
whichever is earlier.
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