...the companies "choked/came back in/ and said it's a deal ... only ask is completion of NEPA by Oct '12."

In October of 2009, the Court remanded the rate methodology back to FERC, finding that the Commission had not provided sufficient record evidence to justify its findings that the existing allocation practice for new facilities at and above 500 kV was unjust and unreasonable, and the Commission had not adequately supported its conclusion that the postage-stamp methodology was just and reasonable. The court found that the Commission’s reliance on the difficulty of measuring benefits for above 500 kV facilities, and the resulting likelihood of litigation, failed to justify the Commission’s decision. The court stated that the Commission had failed to show “the absence of any indication that the difficulty exceeds that of measuring benefits to particular utilities of a smaller-capacity transmission line.” The court further found that the Commission failed to justify requiring PJM to adopt a region-wide, postage-stamp cost allocation methodology for new transmission facilities that operate at or above 500 kV.

Meyers said the companies have been aware of the issues and will assist the PSC.

“It’s just an exercise that we need to go through, and hopefully, when we come to the end of the investigation and the recommendations and everything else, we can be stronger for it and have a good outcome for our customers,” Meyers said.

FINDINGS OF FACT
1. FirstEnergy recently acquired control of Mon Power and PE. Monongahela Power Company, et al., Case No. 10-0713-E-PC (Commission Order, December 16, 2010).
2. Certain FirstEnergy customers in West Virginia have received high bills which may be attributable to estimated OT average bills that may not have reasonably reflected historical usage and require further review.

1. Following the acquisition of Mon Power and PE in 2010, what changes, if any, to meter reading and customer billing has FirstEnergy implemented?
2. What data does FirstEnergy use to derive estimated or average bills?
3. To what extent has FirstEnergy reviewed or analyzed each current method of calculating estimated or averaged monthly bills of West Virginia customers after the acquisition of Mon Power and PE?
4. What was the effect of the severe storms in 2012 on how FirstEnergy calculated bills or its meter reading practices?
5. What is the total number of complaints received by First Energy from West Virginia customers about meter reading, estimated bills or average billing. Please provide a breakdown by complaint category.
6. What percentage of FirstEnergy customers in West Virginia had actual company employee meter readings (i) from one to five times per consecutive twelve month period, (ii) six times per consecutive twelve month period, (iii) more than six times per consecutive twelve month period over the last twenty-four consecutive months?
7. Did FirstEnergy maintain and incorporate historical billing data that pre-dated the merger into its calculation of estimated bills or average payment plans?
8. Describe in detail the manpower and equipment currently used to provide meter reading to Mon Power and PE customers and provide the same information for that activity prior to the FirstEnergy acquisition.
9. Describe in detail the manpower and equipment currently used to provide billing and customer service to Mon Power and PE customers and provide the same information for that activity prior to the FirstEnergy acquisition and after the FirstEnergy acquisition.
10. Describe the meter reading scheduling for Mon Power and PE, and describe the alternatives and options that are available to Mon Power and PE to reschedule or otherwise handle unexpected interruptions to normal meter reading schedules such as weather related incidents, unscheduled employee leave, transportation equipment failures or other such disruptive incidents.
11. Does FirstEnergy collect metrics regarding its customer service call center or other customer service contacts with ratepayers for any purpose including internal evaluations, planning and budgeting, or external reporting to other regulatory agencies? Provide a twenty-four month summary of each available customer service metric for all customers and separately for West Virginia customers along with a brief description of each metric.
12. What assistance does FirstEnergy provide to customers that receive large actual bills following a period of estimated bills?

The purpose of this general investigation is not to address individual customer bills directly. We recognize that considering the high level of formal and informal filings by individual customers to date, there may be a tendency for individuals to want to address their grievances in this proceeding. Each customer is entitled to specific evaluation of the particulars of individual billing and payment issues and such evaluation is best accomplished through the formal and informal review processes available for individual complaints. Customer-specific, formal and informal matters will continue to be resolved individually. This proceeding will focus on the practices, policies and procedures in place at Mon Power and PE and evaluate the strengths and weaknesses at a structural level.

We feel that the current billing problems are an unanticipated consequence of the company’s efforts to reduce expenses that can only be corrected by making sure that the company is being adequately funded to read meters with the frequency stipulated by the tariff.  This deficiency can only be remedied through a new base rate case. We also request that amounts necessary to read meters as required that were not spent by the company over the past two years be refunded to ratepayers, and that the Commission impose any and all fines, penalties and reprimands available under its authority consistent with its findings, among other relief measures.

The problems stem from a series of issues connected with several large storms and with FirstEnergy's acquisition of the utilities' former parent, Allegheny Energy in early 2011, according to company spokesman Todd Meyers.

Bills are based on alternate months of actual meter readings and estimates, Meyers said.

During storm response — including, since the acquisition, Hurricane Irene in August 2011, the derecho in June 2012 and superstorm Sandy in October 2012, as well as smaller storms — meter readers may be called off their routes to watch lines that have been reported down until line crews arrive. They return to reading meters on schedule, so the readings that are missed during those periods aren't made up and result in three estimates in a row — which can result in large true-up bills when those meters are read in the fourth month.

In addition, as FirstEnergy began transitioning from Allegheny's system in which meter readers conducted meter maintenance and other functions as well to its own system in which they only read meters, some staff in the Potomac Edison service area switched to other positions, creating a temporary staffing shortage in mid-2012, Meyers said.

And another phase of transition in early 2013 called "renumbering," in which routes were adjusted, also resulted in a one-time long billing cycle, he said — which, again, created problems primarily in the eastern panhandle.