The Cleveland Plain Dealer first reported today that FirstEnergy Solutions is preparing to charge "2 million of its 2.7 million retail customers" an "RTO Expense Surcharge," due to the high cost of PJM ancillaries.

On its website, FirstEnergy Solutions says it, "is charging those customers whose contracts treat these additional charges from PJM as a 'pass-through event.' The amount of this one-time charge – called the RTO Expense Surcharge – will appear on your May, June or July bill. For an average residential customer, the charge will be approximately $5 to $15. The charge for small business customers will be approximately 1 to 3 percent of the total amount you spend on generation annually."

Under an FAQ, FES says:
"Q. Aren’t these costs already included in my price?"
"A. No. During this period of extreme temperatures, significant increases in energy consumption and emergency operations, PJM incurred extremely high ancillary service costs to purchase additional reserve generation needed to keep the bulk electric system reliable. These costs and additional charges were, in turn, invoiced by PJM to suppliers serving customers throughout the region. Pursuant to your agreement with FirstEnergy Solutions, these additional costs and charges are deemed a “Pass-Through Event.” This provision in the contract is intended to protect the customer with a lower fixed price, and allow FirstEnergy Solutions the flexibility to respond to an extraordinary, unpredictable and unforeseen event such as we had in January. As a result, electric generation costs for the month of January will be adjusted through a charge, which will appear as a separate line item on your bill. This charge will not change your contract price."

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FES Residential Surcharge Site

FES Business Surcharge Site

Cleveland Plain Dealer