From Jefferson County:

Potomac Edison/FirstEnergy has a public image to restore. In fairness to the customers, the ones who recieved overwhelming bills of a 120-day usage for one month's billing period should be shown restitution. That would be the first step to restoring their reputation and consumer confidence in their customers.

Of particular note is that on about April 1, 2012 MP and PE changed over from the prior Allegheny Power billing system to the billing system of FirstEnergy. 
Within the eleven months prior to the initiation of the general investigation, customers of the Companies filed  approximately 750 Requests for Assistance (RFAs) related to billing practices in addition to nearly seventy formal complaints.
Staff noted a significant increase in RFAs concerning the Companies' billings beginning in January 2013, particularly RFAs directly related to estimated bills.

A major Staff concern is the future impact on MP and PE customers affected by recent problems whether storm related, related to meter reading staffing problems, or route renumbering projects that have been unreasonably billed. Since both estimation methods generally rely on historical usage data, how is MP, in the customer example of Attachment 3, going to produce reasonable usage estimates for that customer in the forthcoming "winter heating season" given the obviously bad usage data that has been generated? How for all other similarly affected MP and PE customers?

Staff is very concerned that the unreasonable billings sent to  customers who previously received bills based on unreasonable estimates will be  self-perpetuating. As both the estimation methods generally rely on historical usage data, it seems likely that MP and PE will produce unreasonable usage estimates in the future because they are relying on historical bad usage data the utilities based on bad estimates. Staff does not currently agree that the Companies' recently implemented initiatives, set forth on Page 14 of its report, are sufficient to resolve this proceeding without further investigation.

The Companies report that it reassigned meter readers to assist in storm restoration after Super Storm Sandy caused damage on October 30, 2012, which would account for MP averaging 27% of customers receiving consecutive estimated bills in November 2012 and PE averaging 23%. In December 2012, PE
continued to average 23% of customers receiving consecutive estimated bills and MP
averaged 31%.  While Super Storm Sandy went through West Virginia on October 30, 2012 FirstEnergy's responses and responses to individual complaints indicate that meter readers were reassigned to assist in storm restoration which presumably accounts for the November 2012 27% for MP and 23% for PE, but fails to explain why December 2012 was even greater for MP at 31% and the same for PE at 23%.
Technical Staff believes the trends shown on Attachments 1 and 2 are indicative of problems with the Companies' billing practices and cannot be attributed solely to the Summer 2012 Derecho and Super Storm Sandy.  The foregoing table and Attachments 1 and 2 indicate that MP and PE have current billing problems that are not likely to  disappear because the causes of those problems occurred in the past such as from the Derecho and Hurricane Sandy.

After reviewing the Companies' report and their responses to discovery requests, Staff believes it requires additional information in order formulate final recommendations in this general investigation proceeding. Staff is  seeking this information through a separately filed second set of discovery requests. Staff will continue to review this matter and submit final recommendations in accordance with a procedural schedule to be established by the Commission.

Two years ago, Greentech Media asked if utilities could rebuild trust with customers. According to a recent study by Accenture, it appears that it hasn't happened yet.

Less than one-fourth of consumers trust their utility, 9 percent below last year and the lowest figure since Accenture began the annual survey four years ago. Globally, customer satisfaction also dropped 12 percentage points to 47 percent in the past year alone.

The result is that people are increasingly looking past the utility for energy-related services. Home services providers, security companies and commercial retailers are all taking a piece of what could be new revenue streams for utilities. More than 70 percent of consumers surveyed by Accenture said they would consider a provider other than the utility for energy services if it were available.

“Utilities need to consider radically rethinking their customer satisfaction investments with a targeted approach to simplifying the consumer energy experience, addressing the concerns of dissatisfied consumers and closing the expectation gap,” said Greg Guthridge, managing director for Accenture Energy Consumer Services, in a statement. Increasingly, consumer engagement cannot just be a panel topic at smart grid conferences, but instead must become a core undertaking for utilities.

In the next few years, utilities will not only have to build out those platforms while also maintaining and upgrading an aging electrical grid, but also do it all while providing a level of customer service many have never had to provide before.

“Many utilities are at an inflection point at which they should redefine their role in consumers’ lives and refocus on building a base of trust,” said Guthridge. “The first step is making interactions simple, and in particular, getting the basics right the first time."

Merger benefits increased significantly from '11 to '12 to '13. As I said, Gary's going to speak more to that, but this is the pretax earnings impact associated with those and you'll see that, that's in excess of $1 billion.

We're also targeting O&M reductions beyond the synergies of between $75 million and $175 million in 2012 and 2013. We expect asset sales in the range of $800 million to $900 million per year, and we expect to reduce debt by $1.5 billion to $2.2 billion over this time period.

...we continue to look for opportunities to reduce O&M. I just want to give you one, very quick example, of what we're doing on the O&M side.

We closed the transaction February 28 of last year. There are roughly 75 major applications that have to get integrated between the 2 companies. For some of the operating savings to occur, those systems have to be integrated. I'm pleased to say that our IT folks are basically going to integrate all of those applications in record time, and they'll make their cut-over shortly. They've had 5 test runs, so you'll see that some of the synergy has been accelerated and some of the synergies too, become, as we integrate our systems. And we're quite pleased with where we are. We'll continue to look for incremental costs. It's kind of our nature. But we're not going to do anything simply for a short-term benefit that puts the company at a longer-term risk. That's just not something we are going to do. Everything we are doing is to place FirstEnergy in the best possible forward position.