FirstEnergy Pennsylvania Utilities File Plans to Purchase Electric Generation Supply Beginning in 2023
FirstEnergy Corp. (NYSE: FE) announced that its utility subsidiaries have filed procurement plans with the Pennsylvania Public Utility Commission for electric generation supply starting June 2023. These companies serve over two million customers in Pennsylvania and will use an auction process for electric supply. CRA International will manage the procurement process, starting auctions in November 2022 and continuing semiannually until 2026. Additionally, they aim to meet alternative energy standards, including solar projects. A decision from the PaPUC is expected in mid-2022.
- The procurement plan aims to ensure a secure electric supply for customers.
- CRA International will manage the auction process, providing expertise in energy markets.
- The plan includes a process to meet state-mandated alternative energy standards.
- The company does not own electric generation plants, potentially limiting supply control.
- The effectiveness of the procurement strategy depends on auction outcomes, which are subject to market fluctuations.
READING, Pa., Dec. 15, 2021 /PRNewswire/ -- FirstEnergy Corp.'s (NYSE: FE) Metropolitan Edison (Met-Ed), Pennsylvania Electric (Penelec), Pennsylvania Power (Penn Power), and West Penn Power (West Penn) utility companies have filed plans with the Pennsylvania Public Utility Commission (PaPUC) to procure electric generation supply beginning June 2023 for customers who choose not to shop with alternate suppliers. The companies, which do not own any electric generating plants, serve more than two million customers in Pennsylvania. An auction process will be used to ensure the utilities' customers have a secure supply of electric generation.
The procurement process will be managed by CRA International, Inc. (CRA), a global consulting firm with expertise in energy markets. Under the proposed plan, CRA will conduct the first auction in November 2022 and then semiannually from 2023 to 2026. Generation prices will be calculated based on a blended average by customer class. The process will ensure the confidentiality of information provided by bidders, which will be required to certify that they are creditworthy, acting independently of other bidders, and are making firm offers to provide generation service to customers.
The proposed program also includes a process for meeting state-mandated alternative energy standards, including a separate bidding process to procure a long-term solar energy project. The solar Alternative Energy Credits from the solar project will be used to meet a portion of state-mandated alternative energy standards.
Additionally, the companies have proposed to continue the Customer Referral Program that was established in August 2013 in an effort to continue to enhance retail competition in their service territories.
Information about the filing and the proposed procurement program is available on the Companies' individual company webpages found at www.firstenergycorp.com.
The companies expect that the PaPUC will rule on their Default Service Program petition in mid-2022.
FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its ten electric distribution companies form one of the nation's largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy on Twitter @FirstEnergyCorp or online at www.firstenergycorp.com.
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FAQ
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