FirstEnergy's Pennsylvania Subsidiaries File Settlement in Consolidation Proceeding
- Income-eligible customers would receive $650,000 in bill assistance over five years
- Cost savings realized through consolidated operations would be returned to customers in future base rate reviews
- None.
Proposed settlement would provide cost savings to customers, particularly those in need
Under the terms of the proposed settlement, income-eligible customers would receive a total of
The settlement, if approved by the PaPUC, helps enable the path forward for the companies' March 2023 application filed with the PaPUC that would consolidate the subsidiaries into a single legal entity called FirstEnergy Pennsylvania Electric Company (FE PA). The distribution companies will continue to do business publicly under the existing local brand names that are familiar to customers – Met-Ed, Penelec, Penn Power and West Penn Power.
The companies have requested PaPUC approval of their application no later than December 2023 and are also awaiting commission approval in
Following consolidation, customers would continue to receive service from the familiar electric company brands that currently deliver their electricity. For billing and other customer-facing purposes, the four electric companies would continue to use their existing names. Similarly, customer rates and terms and conditions of service would not change as a result of the consolidation. Consolidation also would not change Universal Service Programs, Pennsylvania Customer Assistance Programs for lower-income customers, Energy Efficiency programs and Default Service programs. Any changes to customer rates, terms and conditions and programs will be addressed in future base rate reviews and other proceedings.
By consolidating to a larger, combined company, FE PA anticipates gaining greater access to capital at more favorable interest rates to invest in projects to improve customer service and further enhance the energy grid.
"We appreciate the hard work of involved parties in negotiating an agreement that will provide long-lasting benefits to customers, regulators, stakeholders and employees alike while continuing to deliver safe and reliable electric service to our customers," said Scott Wyman, president of FirstEnergy's
If approved, the consolidation would also result in the transfer of transmission assets owned and operated by West Penn Power to KATCo. As a distribution-only company, FE PA would focus its investments solely to serve its local customers. It would not be responsible for financing transmission projects driven by ever-changing grid requirements and that potentially benefit utility customers in distant regions.
Parties to the settlement include, but are not limited to, the Office of Consumer Advocate, the Office of Small Business Advocate, Pennsylvania State University, the Bureau of Investigation and Enforcement, the Coalition for Affordable Utility Services and Energy Efficiency in
Met-Ed serves approximately 587,000 customers within 3,300 square miles of eastern and southeastern
Penelec serves approximately 588,000 customers within 17,600 square miles of northern and central
Penn Power serves more than 170,000 customers in all or parts of
West Penn Power serves approximately 737,000 customers in 24 counties within central and southwestern
FirstEnergy is dedicated to integrity, safety, reliability, and operational excellence. Its 10 electric distribution companies form one of the nation's largest investor-owned electric systems, serving customers in
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SOURCE FirstEnergy Corp.
FAQ
What is the settlement agreement between FirstEnergy Corp's subsidiaries and the Pennsylvania Public Utility Commission?
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