Distribution Uncollectibles
FirstEnergy
Current Rate
0.0229¢/kWh
Est. 2009
Recovers the cost of uncollectible distribution accounts across the customer base.
📜 History & Background
The Distribution Uncollectibles (DUN) rider allows FirstEnergy to recover the cost of unpaid electricity bills from customers who default on their distribution accounts. All utilities experience some level of uncollectible accounts, and PUCO allows utilities to recover these as a legitimate cost of service through a dedicated rider rather than folding them into base rates (where they could only be adjusted in a full rate case). The DUN rate is periodically adjusted based on actual uncollectible experience.
⚙️ How It Works
A small per-kWh charge (approximately 0.023¢/kWh) is assessed on all customers to fund a pool that offsets the distribution revenue lost to uncollectible accounts. This spreads the cost of bad debt across the entire customer base rather than leaving it as a utility loss.
🔒 If You Switch Suppliers
Non-bypassable — bad debt on distribution accounts affects all distribution customers regardless of their electricity supplier.