DCRdistribution🔒 Non-bypassable

Delivery Capital Recovery

FirstEnergy

Current Rate

1.3510¢/kWh

PUCO Case

07-551-EL-AIR

Est. 2009

Recovers return on incremental distribution capital investment since the last base rate case. Charged as 45.7849% of the customer's distribution energy charge (≈1.35¢/kWh at the base tariff distribution rate). Non-bypassable.

📜 History & Background

The Delivery Capital Recovery (DCR) rider was established in PUCO Case No. 07-551-EL-AIR to let FirstEnergy recover a return on distribution capital investment made between full rate cases. Ohio utilities earn an authorized return on their rate base — the net value of assets used to provide service — and DCR is the in-between-rate-case mechanism for adding new distribution plant to that base without a separate full rate proceeding for each investment.

⚙️ How It Works

DCR is charged as a percentage of the customer's base distribution energy charge (currently 45.7849% for Rate RS, equivalent to roughly 1.35¢/kWh on the October 2024 base distribution rate). It is reset quarterly and rolls into the rate base at the next general rate case.

🔒 If You Switch Suppliers

Non-bypassable — distribution capital recovery applies to all customers regardless of supplier choice, since the distribution infrastructure serves all customers.