-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, XYzAPYXTRxT8UvJ4sRfErqLRmPSK0XGp7auNi4KvlsOatZaczUbfvZMu+2pny4+a mO3ZYtFYrZIhXDP2AqzFwA== 0000073960-95-000011.txt : 19950908 0000073960-95-000011.hdr.sgml : 19950908 ACCESSION NUMBER: 0000073960-95-000011 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950907 ITEM INFORMATION: Other events FILED AS OF DATE: 19950907 SROS: CSX SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: OHIO EDISON CO CENTRAL INDEX KEY: 0000073960 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 340437786 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-02578 FILM NUMBER: 95570862 BUSINESS ADDRESS: STREET 1: 76 S MAIN ST CITY: AKRON STATE: OH ZIP: 44308 BUSINESS PHONE: 2163845100 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) September 7, 1995 OHIO EDISON COMPANY (Exact name of Registrant as specified in its charter) Ohio 1-2578 34-0437786 (State or other jurisdiction of (Commission (I.R.S. Employer incorporation or organization) File Number) Identification No.) 76 South Main Street, Akron, Ohio 44308 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 216-384-5100 Item 5. Other Events On September 7, 1995, Ohio Edison Company (Company) filed an application with the Public Utilities Commission of Ohio (PUCO) for authority to implement its Comprehensive Rate Reduction and Economic Development Plan (Plan). The Plan is designed to enhance and accelerate economic development within the Company's service area and to assure the Company's customers of long-term competitive pricing for energy services. The Ohio Office of the Consumers' Counsel and Industrial Energy Users-Ohio have entered a stipulation with the Company supporting the Plan. The Plan provides for freezing the Company's base electric rates until January 1, 2006, at which time base electric rates would be reduced by approximately $300 million, or 20 percent, on an annual basis. During the ten- year rate freeze period, which would remain in effect unless certain significant events occur, transition rate credits will be implemented under certain conditions for customers served under the Company's General Service- Large rates (primarily industrial customers). Also, the monthly customer charge will be reduced for customers served under the Company's General Service-Secondary and Residential rates. Taken together, these transition rate credits are expected to reduce operating revenues by approximately $600 million during the ten-year rate freeze period. A major component of the Plan is the Company's commitment to reduce fixed costs during the ten-year period by implementing regulatory accounting modifications, such as accelerating depreciation of generating assets and increasing amortization of regulatory assets which are being recovered from customers. The Company has established aggressive targets to reduce costs and increase revenue opportunities through its performance initiatives program. Achieving those targets enables the Company to implement these accounting modifications and offer the transition rate credits during the Plan period, and preserve the opportunity to maintain a reasonable return to shareholders. The Plan includes a cap (based upon the most recent common equity return authorized for the Company by the PUCO) on the amount the Company may earn applicable to its common stockholders in any calendar year during the Plan period. If the cap were to be exceeded, such excess would be credited to customers in a future period. -1- SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. OHIO EDISON COMPANY /s/ Harvey L. Wagner -------------------------- Harvey L. Wagner Comptroller Dated: September 7, 1995 -----END PRIVACY-ENHANCED MESSAGE-----