Lakewood demands blackout backup while FirstEnergy books an AI-lifted quarter

Two summers of blackouts, then a formal demand for backup

Equipment failures at the Lauderdale substation left thousands of Lakewood residents without power around the Fourth of July, some for days, the second straight summer of prolonged outages in the Cleveland suburb ¹. "I've been here 25 years, never been through anything like this," resident Don Nottage said ². On 25 September, Mayor Meghan George asked state regulators to order FirstEnergy to keep the lights on, with backup generators if necessary, through a rebuild its chief executive says needs seven to nine years↗ ³. Council questions the company Monday night ¹.

A quarter lifted by data centers

FirstEnergy's second-quarter profit was $288 million, or 50 cents a share, up from $268 million, or 46 cents, a year earlier↗, on rising data-center demand ⁴⁵.

Forecast data-center demand rose 30% since the first quarter to about 25 gigawatts↗, with 6.4 gigawatts under contract after 2.1 were signed in the quarter. Contracted and pipelined load now equals roughly 70% of the July system peak of 34.8 gigawatts ⁶.

Where the cash goes: wires, not yet earnings

The company reaffirmed a $6 billion capital plan for 2026 inside a $36 billion five-year program, and targets core earnings growth near the top of 6 to 8% through 2030 ⁶. The filings show where the cash goes: capital investment ran $1.35 billion in the June quarter, up 9.5% on a year earlier↗ ⁷.

An Edison-era grid with no bridge across the rebuild

Chief Executive Brian Tierney has described Lakewood's network as "too old," "not reliable" and "at capacity," likening its age to the era of Thomas Edison, according to the city ³. His company's 21 August response to regulators lists the facilities it will retire, replace or upgrade, and, the city says, nothing on keeping power reliable while that work runs ³. "The experience of the last two years shows us that days-long failures are likely to recur," George wrote ³.

Fines already levied, bills already paid

Regulators found probable noncompliance on 7 August and ordered FirstEnergy to forfeit $3 million, which the company has asked to spend on upgrades instead ³¹. A 23 June decision rejected its bid to lower its own performance standards ³. Lakewood customers have already paid $369.6 million for one modernization program and are paying $421 million for the next↗ ¹. The trust deficit predates this summer: FirstEnergy has admitted bribing Ohio officials in the House Bill 6 scandal↗ ⁸.

Households carry a 34% rise and a $15.45 proposal

A state audit this month found Ohio electricity prices up 34% since 2022, a commission that misses rate-case deadlines, and no strategic plan for rising demand and data-center growth ⁸. The audit does not attribute the increase to data centers. Separately, FirstEnergy's proposed three-year rate plan would add about $15.45 a month to a typical Cleveland-area bill by its third year↗ on the Consumers' Counsel's cumulative math; none of it is approved ⁹.

FirstEnergy answers with $2.5 billion and an apology

The company points to $2.5 billion of proposed Ohio distribution investment through June 2030↗, a September apology letter↗, and the fixes regulators ordered: two substation transformers, smart meters and lead-cable inspections due by the end of 2026 ⁹⁸¹. Its core earnings, though, were 50 cents a share against 52 a year earlier ⁶. The AI lift, so far, is mostly a five-year promise.

Columbus will decide who pays for the load

Commission staff report on the rate plan on 30 November, hearings open on 1 March 2027, and an order is expected in the second quarter of 2027 ⁹⁶. Whether data centers pay their own way is still undecided in the Statehouse; Representative Adam Mathews argues the ones raising system costs should ⁸. The wires are Edison-era, the demand book is 25 gigawatts, and the invoice so far is addressed to households.