Ohio consumers may soon see changes to their electric rates, after a new order from the Public Utilities Commission of Ohio (PUCO).

The PUCO announced Wednesday that it is ordering Cleveland Electric Illuminating Company, Ohio Edison, and Toledo Edison to gradually pay off the roughly $245 million of previously deferred storm restoration expenses over the course of 25 years rather than a 5-year period. In turn, the PUCO has ordered that consumer rates be updated to match the change. In many regions this will mean lowered rates for consumers.

The commission credited the adjustment to affordability concerns.

In response to the order, Ohio electric companies will be making the following rate adjustments:

  • Ohio Edison will set rates to lower its annual revenues by approximately $24.5 million.
  • Toledo Edison will set rates to lower its annual revenues by approximately $29.5 million.
  • Cleveland Electric Illuminating Company will set rates to increase its annual revenues by approximately $48.7 million. (This is lower than it would have been under the original 5-year plan).

The costs outlined under the deferred storm restoration expenses are, however, still subject to audit, PUCO said in a Wednesday statement. If the utility companies cannot justify every cent of the $245 million fund, rates may be adjusted again.

Overall, the Wednesday order will result in a revenue reduction of roughly $39.4 million for the three utility companies.

The Ohio Consumers' Council (OCC) issued a response to the change, saying it will have "immediate bill impacts" on Ohio households. However, the OCC also warned that extending the payment period could result in higher costs for consumers over time. Shifting costs into the future requires "rigorous oversight" the council added.

"We appreciate the PUCO reducing near-term bill impacts, but longer recovery periods can raise total costs—making strong oversight essential to protect consumers," Maureen Willis agency director of the office of the Ohio Consumers' Counsel said.