FirstEnergy Corp. and its Ohio subsidiaries—Ohio Edison, Toledo Edison and The Illuminating Company—reached a settlement with the Public Utilities Commission of Ohio (PUCO) on December 19 2025 that resolves four pending proceedings and provides $275 million in restitution to Ohio customers. The agreement confirms the company will pay the full $250 million order issued by PUCO on November 19 2025, with the remaining $25 million earmarked for residential customers and the state general fund.
The settlement allocates $64 million to the Ohio state general fund and an additional $20 million of the $25 million to low‑income bill‑payment assistance, weatherization, and energy‑efficiency programs. The remaining $5 million is directed to residential customers, ensuring that the restitution is distributed across the customer base while supporting community‑level energy initiatives.
The agreement resolves four PUCO proceedings: the Corporate Separation case, the Distribution Modernization Rider (Rider DMR) and the Distribution Cost‑Recovery Rider (Rider DCR) disputes, and a review of political and charitable spending. Rider DMR had previously been declared unlawful by the Ohio Supreme Court in 2019, and the settlement eliminates the regulatory uncertainty surrounding these riders.
By settling these matters, FirstEnergy removes a decade‑long regulatory overhang that had eroded customer trust and created operational uncertainty. The resolution also clears the way for the company’s $14 billion “Energize365” investment plan, which will upgrade Ohio’s transmission and distribution infrastructure through 2029 and support the company’s transition to a fully regulated transmission and distribution business model.
FirstEnergy Ohio President Torrence Hinton said the settlement “provides even more dollars to our Ohio customers” and signals a renewed focus on transparency, reliability, and community investment. The company’s leadership views the agreement as a critical step toward restoring confidence and positioning FirstEnergy for long‑term growth in a regulated environment.
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