# Ohio continues move to smarter power system with multimillion-dollar clean-energy agreement

*Published:* 2018-11-09
*Author:* John Finnigan

[![](https://blogs.edf.org/energyexchange/wp-content/blogs.dir/38/files/2017/10/power-972191_960_720-pixabay-300x168.jpg)](https://blogs.edf.org/energyexchange/wp-content/blogs.dir/38/files/2017/10/power-972191_960_720-pixabay.jpg)Over the past few years, Environmental Defense Fund (EDF) has [actively opposed](http://www.edf.org/energy/firstenergy-facts) FirstEnergy in several cases where it sought bailouts for its uneconomic coal plants. We will continue to do so.

But if the utility giant wants to build a cleaner, more modern grid, we are eager to work together. Case in point: We are pleased to report that we [reached an agreement](https://www.edf.org/media/firstenergy-takes-step-toward-cleaner-modern-grid) on FirstEnergy’s plan to spend $516 million on grid modernization, bringing about lower bills, greater customer choice and less pollution.

Following [AEP](https://blogs.edf.org/energyexchange/2017/08/28/new-utility-settlement-will-unlock-millions-in-clean-energy-funding-for-ohio/) and [Dayton Power & Light’s](https://blogs.edf.org/energyexchange/2018/07/09/new-utility-settlement-highlights-how-ohio-utilities-are-leaving-firstenergy-behind-on-clean-energy/) related agreements – both approved earlier this year – and in the midst of the Public Utilities Commission of Ohio’s (PUCO) innovative [PowerForward initiative](https://www.puco.ohio.gov/industry-information/industry-topics/powerforward/), it’s clear Ohio is on a path to a smarter, more sophisticated power system.

**Solving a dilemma**

Ohio’s electric utilities have been grappling with two complex issues in multiple cases pending before the PUCO:

1. How to credit back to customers the savings from the 2018 Tax Cut and Jobs Act; and
2. How to modernize their grid.

FirstEnergy and Commission Staff developed a plan to kill two birds with one stone, combining the cases to ensure credit for the tax cut savings goes back to customers in full and FirstEnergy moves forward with a grid modernization plan.

**Grid mod plan**

FirstEnergy and Commission Staff, with input from EDF, designed a promising Phase 1 grid modernization plan that will deliver significant customer benefits, including:

• **Data access:** FirstEnergy will install 700,000 smart meters and evaluate tools for giving customers better access to their energy-use data, allowing customers more insight and opportunity to save on their energy bills;  
• **Lower bills:** Customers’ rates will reflect the lower operational costs from installing smart meters;  
**• Greater grid efficiency**: FirstEnergy will install [voltage optimization](<http://ny-spfweb/sites/Programs/Energy/Communications/Clean Energy/Fact Sheets/2016 Mar %E2%80%93 Voltage Optimization.pdf>) equipment with a goal of reducing the grid’s energy usage by 4 percent;  
• **Dynamic rates:** FirstEnergy will establish [time-of-use rates](https://blogs.edf.org/energyexchange/2015/01/27/all-electricity-is-not-priced-equally-time-variant-pricing-101/) so customers can choose to use electricity during off-peak times when electricity is cheaper and cleaner;  
• **Environmental metrics:** FirstEnergy will measure the greenhouse gas emission reductions from these clean energy investments;

To ensure customers receive all available benefits, the PUCO Staff will do assessments, and FirstEnergy will provide detailed reporting and establish a collaborative working group – in which EDF will participate – to monitor the plan’s implementation.

This settlement doesn’t represent the end of the road. Ohio still needs to improve the process for providing customers with greater access to their energy-use data, as well as get utilities to follow grid-planning processes that optimize clean energy. We will continue to work with FirstEnergy and the Commission Staff on grid modernization through the PUCO’s ground-breaking PowerForward initiative to achieve these results.

In the meantime, the PUCO should approve FirstEnergy’s grid modernization plan, which will bring cleaner, more efficient power to Ohioans.

*For more on how Ohio can attract innovation and investment through clean energy, please see the new [Powering Ohio report](http://www.poweringohio.org/?utm_source=blog&utm_medium=email&utm_campaign=po&utm_content=dmpost).*