$445 Million in Savings for Ohio Consumers
OCC U.S. Supreme Court Victory Ends Unnecessary Electric Transmission Charges
OCC secured a major legal victory protecting Ohio utility consumers from unnecessary electric transmission charges.
The United States Supreme Court declined to review a ruling by the U.S. Court of Appeals for the Sixth Circuit that struck down the “RTO adder” for Ohio utilities, an incentive that increased profits for transmission-owning utilities participating in regional transmission organizations (RTOs).
OCC argued that the incentive was no longer justified once utilities had already joined an RTO. The Sixth Circuit agreed, ruling that the Federal Energy Regulatory Commission’s approval of the incentive was unlawful.
Because the Supreme Court declined review, the Sixth Circuit’s decision remains in effect –securing hundreds of millions of dollars in savings for Ohio consumers.
Consumer Savings from the Decision:
- $220 million – AEP Ohio customers
- $126 million – FirstEnergy Ohio customers
- $99 million – Duke Energy Ohio customers
Total estimated consumer savings through 2031: $445 million.
Why the Case Matters
The RTO adder increased utilities’ allowed return on equity by 50 basis points, raising electric transmission costs paid by consumers.
Former FERC Chair Mark Christie criticized the incentive as:
“FERC candy taken directly from consumers and redistributed to transmission owners.”
The Sixth Circuit agreed with OCC that the incentive was no longer justified and ordered it removed.
OCC’s Role
OCC challenged the Federal Energy Regulatory Commission’s approval of the RTO adder and defended the victory when utilities asked the United States Supreme Court to review the case.
By declining review, the Supreme Court left the Sixth Circuit decision in place—securing these savings for Ohio consumers.
USSC Case Nos. 24-1304, 24-1318; USCA 6th Cir. Case Nos. 21-4072, 22-3351, 23-3196, 23-3324, 23-3366, 23-3417; Originating FERC Case Nos. ER20-1068-000, ER20-1068-003
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