Distribution Modernization Rider
FirstEnergy
Current Rate
−2.3469¢/kWh
PUCO Case
17-2474-EL-RDR
Est. 2017
Credit applied to distribution charges per the 2026 rate case settlement. Previously a positive charge funding grid modernization; restructured to a customer credit effective March 2026.
📜 History & Background
The Distribution Modernization Rider (DMR) was originally approved by PUCO in 2017 as part of FirstEnergy's Electric Security Plan (Case No. 14-1297-EL-SSO). It allowed FirstEnergy to collect approximately $204 million annually from Ohio customers to fund grid modernization projects. The rider became deeply controversial after the Ohio House Bill 6 scandal: in 2020, federal prosecutors charged that FirstEnergy had paid over $60 million in bribes to Ohio officials — including then-House Speaker Larry Householder — to secure passage of HB 6, which provided $1.3 billion in nuclear plant subsidies. The DMR was scrutinized because its funds were used in part to support the bribery scheme. PUCO reopened the case (Case No. 20-1052-EL-RDR) and commissioned an independent audit. The 2026 rate case settlement (Case No. 24-0468-EL-AIR) restructured the DMR entirely, converting it from a positive charge to a customer credit effective March 2026.
⚙️ How It Works
Since March 2026, the DMR appears as a credit of approximately 2.35¢/kWh — reducing your bill rather than adding to it. This reflects the settlement terms under which FirstEnergy agreed to return value to customers following the rate case and the resolution of the HB 6 fallout.
🔒 If You Switch Suppliers
Non-bypassable — the credit applies to all customers on the distribution system regardless of their electricity supplier. Switching suppliers does not affect this credit.