COLUMBUS, Ohio (Ohio News Service): Some Ohio consumer groups are speaking out over what they call a “corporate bailout” for First Energy. This week, the Public Utilities Commission of Ohio approved a rate increase for First Energy that amounts to $204 million a year for three years.

While First Energy said the money is for grid modernization, Trey Addison, associate state director for AARP Ohio, contends there are no guarantees in the rider stating that’s where it will go.

“There’s a whole lot of loopholes in there, where First Energy can use these resources to take care of some items that are not related, frankly, to modernizing the grid,” he said. “We don’t want to see consumers bailing out and really subsidizing companies if it’s not beneficial for the consumer.”

The rate increase is roughly three percent, which amounts to about three dollars more on the average monthly energy bill. First Energy initially requested about $500 million annually over eight years. The company said it is disappointed in the decision, and said the amount granted is not enough to cover necessary investments.

According to Addison, the increase negates any benefits that a more competitive energy market brings to businesses and consumers, including lower wholesale energy prices. And he noted AARP Ohio’s concern is for lower-income customers, who will be disproportionately affected.

“For us, we’re concerned about the individual on a fixed income who consistently has watched their bill go up every single month, and that income really is not going up at the same rate,” he explained.

He added the decision sets a “scary” precedent, opening the door for other utility companies asking for similar deals.