The proposed FirstEnergy Ohio rate increase comes from a new Three-Year Rate Plan. FirstEnergy's three Ohio utilities filed it with the Public Utilities Commission of Ohio (PUCO): Ohio Edison, The Illuminating Company and Toledo Edison.
If it's approved as filed, typical residential customers would see gradual yearly increases in the distribution part of their bills. Take a typical residential customer who buys power from the utility (not a competitive supplier) and uses about 1,000 kWh a month. FirstEnergy estimates the average yearly impact at:
- Ohio Edison — about $4.26 more per month each year
- The Illuminating Company — about $5.15 more per month each year
- Toledo Edison — about $5.30 more per month each year
Is the FirstEnergy Ohio Rate Increase Already in Effect?
No. The plan was filed in May 2026 and is still under PUCO review. The PUCO can approve, change or reject parts of it.
These increases are proposed, not final.
Why Is FirstEnergy Using a Three-Year Plan?
Ohio law now allows utilities to use a more forward-looking approach to distribution rates. Instead of only recovering money already spent, a utility can lay out its planned investments over a three-year period.
FirstEnergy says the goal is to make grid investment more predictable, rate changes more gradual and reliability planning more transparent.
How Much Would Ohio Edison Rates Increase?
For a typical residential customer using 1,000 kWh a month, FirstEnergy estimates an average increase of about 2.2% a year. That's roughly $4.26 more per month each year over the three-year plan. That applies to the distribution portion of the bill.
How Much Would Illuminating Company Rates Increase?
For The Illuminating Company, FirstEnergy estimates about 2.6% a year, or roughly $5.15 more per month each year. Again, that's the proposed distribution impact.
How Much Would Toledo Edison Rates Increase?
For Toledo Edison, the estimate is about 2.8% a year, or roughly $5.30 more per month each year — the largest of the three.
What Is the Money Meant to Pay For?
FirstEnergy says the plan would invest an average of about $800 million a year in upgrading the distribution system across the state. The plan is meant to support work like pole replacements, wire upgrades, grid technology, reliability improvements and faster outage restoration. FirstEnergy says spreading that investment over several years should make rate changes more predictable.
Does the Plan Affect Electricity Supply Prices?
No, and this is one of the most important points for Ohio homeowners.
FirstEnergy's Three-Year Rate Plan covers distribution. It doesn't set the price of the electricity itself. Ohio customers can buy their power from the utility's default Standard Service Offer, a competitive retail supplier or a municipal aggregation program. So your total bill may change differently from the proposed distribution increase.
Why This Matters
Imagine the distribution part of your bill goes up $5 a month, but your supplier rate drops enough to save you $12 a month. Your total bill could actually go down. The reverse can happen, too.
That's why “FirstEnergy rate increase” doesn't necessarily mean your total bill goes up by exactly that percentage.
Temporary Credits Can Also Muddy Comparisons
FirstEnergy Ohio customers received sizable temporary bill credits earlier in 2026 as part of a PUCO-approved settlement. So comparing one 2026 bill to another without checking for credits can give you the wrong idea about what actually changed.
A clean comparison looks at base distribution charges, your supplier rate, any temporary credits and your monthly kWh.
Does Data-Center Growth Matter for FirstEnergy Ohio?
Ohio is seeing fast data-center growth, but the biggest concentration of it right now is in AEP Ohio territory.
FirstEnergy customers are still connected to the broader regional system through PJM, the regional grid operator. So major regional load growth can affect transmission planning, capacity markets and generation needs. But the pending Three-Year Rate Plan is mainly a local distribution infrastructure plan, not a data-center tariff.
Why Distribution Still Matters
Distribution is the local system that carries electricity from the regional grid to your house: poles, transformers, local wires, substations and smart-grid equipment. Those assets need ongoing replacement and upgrades no matter who supplies your electricity.
What Does the Proposed Increase Mean for Your House?
Say your home uses 15,000 kWh a year, and efficiency upgrades bring that down to 12,000 kWh. You've just taken 3,000 kWh out of the line of fire for supply costs, usage-based charges and future market increases.
Distribution costs won't disappear entirely, since some charges are fixed or structured differently. But lowering your home's total usage can still reduce your long-term energy costs.
Step 1: Check Which FirstEnergy Utility Serves You
Are you with Ohio Edison, The Illuminating Company or Toledo Edison? The proposed yearly impact is different for each one.
Step 2: Check Your Supplier
Find your supplier's name, price per kWh, contract term and whether the rate is fixed or variable. Also find your utility's Price to Compare (its default supply price). A supplier problem can matter a lot more than a $4–$5 distribution change.
Step 3: Evaluate the House
Look at your annual kWh, HVAC, insulation, heat-pump backup heat, EV charging and any new loads. The rate plan tells you what the utility may charge. The house determines how much energy you need.
Step 4: Evaluate Solar
Solar can reduce the electricity you buy from the grid. But in Ohio, the numbers depend on your utility, your supplier, the distributed-generation rules, roof exposure, system cost and current tax law. That includes the fact that the 30% federal residential solar credit ended for new systems after 2025.
Step 5: Evaluate Battery Storage Separately
A battery can keep essentials running during an outage — sump pumps, well pumps, the refrigerator, furnace controls, internet and medical equipment. That's a different kind of value than cutting what you spend on electricity.
The Ashborn Approach
Ashborn Partners helps Ohio homeowners separate utility rates from household energy problems. We look at your supplier, usage, HVAC, solar, battery storage and whole-home efficiency before recommending a solution.
A proposed rate increase tells you what may change.
Your home tells you what to do about it.
FirstEnergy’s Ohio Three-Year Rate Plan remains subject to PUCO review. The projected annual bill impacts above are utility estimates for non-shopping residential customers using 1,000 kWh per month and are not final until approved.