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) November 15, 1996
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
Corporation) 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: 1-800-736-3402
Item 5. Other Events
On November 15, 1996, FirstEnergy Corp. filed an application
with the Public Utilities Commission of Ohio (PUCO) seeking
authority for a Comprehensive Rate Reduction and Economic
Development Plan (Plan). The Plan is designed to enhance and
accelerate economic development within the service areas of The
Cleveland Electric Illuminating Company (CEI) and The Toledo Edison
Company (Toledo) - operating companies of Centerior Energy
Corporation (Centerior) and to provide CEI's and Toledo's customers
with long-term competitive pricing for energy services. The plan
would take effect after the proposed merger of Ohio Edison Company
(Company) and Centerior receives necessary regulatory and
shareholder approvals. The merger, which was announced in September
1996 and is expected to be finalized by the end of 1997, will
result in the Company, CEI and Toledo becoming subsidiaries of
FirstEnergy Corp. The Ohio Office of the Consumers' Counsel and the
City of Toledo have entered into a stipulation with FirstEnergy
supporting the Plan.
The Plan, similar to one that was approved by the PUCO in 1995
for customers of the Company, would provide interim rate credits
(estimated to aggregate $390 million over the period) for CEI's and
Toledo's residential and certain commercial customers through the
year 2005, but would otherwise keep present base rates in force
until that time (except in the event of significant changes in
environmental, regulatory or tax laws). Effective January 1, 2006,
base rates for all customers of CEI and Toledo would be reduced by
approximately $310 million, or 15 percent, on an annual basis from
current rates.
CEI and Toledo would commit to reduce fixed costs associated
with generating station investment and/or regulatory assets through
2005, for regulatory accounting purposes, through asset
revaluation, depreciation and/or amortization of at least $2
billion more than what would have been recognized without the Plan.
The Plan includes earnings caps for CEI and Toledo which could
trigger credits to customers if their returns on common equity, for
regulatory purposes, exceed 11.5% for calendar years from inception
of the Plan through 1999, 12.0% in 2000 and 2001 and 12.59% from
2002 through 2005.
The regulatory plan for the Company that was approved by the
PUCO in 1995 will not be affected by the Plan submitted by
FirstEnergy Corp.
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
----------------------------
Harvey L. Wagner
Comptroller
Dated: November 25, 1996
