Client Advisor - FirstEnergy Offers Utility Rebate for Ohio Mercantile Customers

FirstEnergy offers a utility rebate program to encourage mercantile customers to undertake programs that reduce energy consumption. This program is open to customers of FirstEnergy’s Ohio-based electric companies, including The Cleveland Electric Illuminating Co. (The Illuminating Co.), Ohio Edison and Toledo Edison.

FirstEnergy started the program to help reduce electric consumption among customers and meet annual energy efficiency benchmarks established for 2010 to 2012. Senate Bill 221, passed in 2008, requires Ohio’s electric utilities to reduce energy demand by 22.2 percent by the year 2025. Utilities must develop portfolio plans and meet annual benchmarks to measure their progress.

A mercantile customer includes businesses and municipalities that use 700,000 kWh annually (roughly  $7,000) or more in electricity per month when combining its facilities within FirstEnergy's footprint. For example, if a retailer has three stores serviced by FirstEnergy, then the retailer can combine the utility bill of all three stores to reach the 700,000 kWh per month threshold.
 
Examples of projects that reduce energy consumption include installing energy efficient  lighting or HVAC systems, reducing electricity usage in manufacturing or process related  operations, and improving efficiency of refrigeration equipment. Other examples include installing occupancy sensors, air curtains, or energy efficient roofs.
 
If a FirstEnergy customer has undertaken a project to reduce electricity usage since January 1, 2008, or has such plans in the future, they should consider this program.  BMF has a relationship with one of the administrators of the program, which has provided  numerous examples where they helped others claim this rebate.  Examples were both big and small, ranging from a $12K rebate for a retailer upgrading its  
parking lot lighting to a $500K rebate for a grocery store chain.  Since the administrator is paid directly from the utility and not from the customer,  there is no downside to this program.
 
For further information on this program, please contact:
 
Dale Ruther, CPA, CIT, CDS
Partner
330.255.2427
Email
 
Alex Bagne, CPA, MBA, JD
Director, Business Tax Solutions
330.255.2404
Email