SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) September 7, 1995
OHIO EDISON COMPANY
(Exact name of Registrant as specified in its charter)
Ohio 1-2578 34-0437786
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
76 South Main Street, Akron, Ohio 44308
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 216-384-5100
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Item 5. Other Events
On September 7, 1995, Ohio Edison Company (Company) filed an
application with the Public Utilities Commission of Ohio (PUCO) for authority
to implement its Comprehensive Rate Reduction and Economic Development Plan
(Plan). The Plan is designed to enhance and accelerate economic development
within the Company's service area and to assure the Company's customers of
long-term competitive pricing for energy services. The Ohio Office of the
Consumers' Counsel and Industrial Energy Users-Ohio have entered a stipulation
with the Company supporting the Plan.
The Plan provides for freezing the Company's base electric rates until
January 1, 2006, at which time base electric rates would be reduced by
approximately $300 million, or 20 percent, on an annual basis. During the ten-
year rate freeze period, which would remain in effect unless certain
significant events occur, transition rate credits will be implemented under
certain conditions for customers served under the Company's General Service-
Large rates (primarily industrial customers). Also, the monthly customer
charge will be reduced for customers served under the Company's General
Service-Secondary and Residential rates. Taken together, these transition rate
credits are expected to reduce operating revenues by approximately $600 million
during the ten-year rate freeze period.
A major component of the Plan is the Company's commitment to reduce
fixed costs during the ten-year period by implementing regulatory accounting
modifications, such as accelerating depreciation of generating assets and
increasing amortization of regulatory assets which are being recovered from
customers. The Company has established aggressive targets to reduce costs and
increase revenue opportunities through its performance initiatives program.
Achieving those targets enables the Company to implement these accounting
modifications and offer the transition rate credits during the Plan period, and
preserve the opportunity to maintain a reasonable return to shareholders. The
Plan includes a cap (based upon the most recent common equity return authorized
for the Company by the PUCO) on the amount the Company may earn applicable to
its common stockholders in any calendar year during the Plan period. If the
cap were to be exceeded, such excess would be credited to customers in a future
period.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
OHIO EDISON COMPANY
/s/ Harvey L. Wagner
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Harvey L. Wagner
Comptroller
Dated: September 7, 1995
