Mon Power and Potomac Edison Break Ground on Third Solar Site

Rhea-AI Summary

Mon Power and Potomac Edison, subsidiaries of FirstEnergy Corp. (NYSE: FE), have begun construction on their third utility-scale solar site in West Virginia. The Marlowe solar project, located on a former ash disposal site in Berkeley County, will produce up to 5.75 megawatts of renewable power when completed in 2025. This project is part of the companies' West Virginia solar program, which aims to develop 200 megawatts of solar renewable generation over time.

The companies have already completed an 18.9-megawatt project at Fort Martin Power Station and started construction on a 5.5-megawatt site in Rivesville. In total, five projects will create over 87,000 solar renewable energy credits (SRECs) available for purchase by customers. The program has enrolled both residential and large commercial customers, with SREC purchases costing 4 cents per kilowatt hour in addition to normal rates.

Positive

• Construction begun on third utility-scale solar site in West Virginia
• Marlowe solar project to produce 5.75 megawatts of renewable power
• Part of a larger plan to develop 200 megawatts of solar renewable generation
• Creation of over 87,000 solar renewable energy credits (SRECs) for customer purchase
• Utilization of local union workers and US-made equipment for construction

Negative

• None.

Insights

Energy Policy Analyst

This solar project represents a significant step in FirstEnergy's renewable energy strategy and West Virginia's transition towards cleaner power sources. The 5.75 megawatt Marlowe facility is part of a larger 50 megawatt solar initiative, which itself is the first phase of a 200 megawatt long-term plan. This aligns with the state's 2020 legislation authorizing utilities to develop solar generation.

The repurposing of a former ash landfill for solar power demonstrates effective land reclamation and environmental remediation. This approach could serve as a model for other utilities looking to redevelop brownfield sites. The use of local union labor and U.S.-made components also supports domestic manufacturing and employment.

The creation of 87,000 Solar Renewable Energy Credits (SRECs) provides a mechanism for customers to support renewable energy. At $0.04 per kWh premium, this program allows FirstEnergy to gauge market demand for green energy while potentially offsetting some development costs. The enrollment of large customers like NETL indicates growing institutional interest in renewable sourcing.

Financial Analyst

While this project is a positive step for FirstEnergy's renewable portfolio, its immediate financial impact is likely to be minimal given FE's $25 billion market cap. The 50 MW initial phase represents a small fraction of the company's total generation capacity. However, the long-term implications could be more significant:

• Regulatory Compliance: This initiative helps FE meet state renewable mandates, potentially avoiding future penalties.
• Customer Retention: Offering renewable options may help retain large commercial and industrial customers who have sustainability goals.
• Cost Stability: Solar generation can provide a hedge against fuel price volatility in fossil fuel plants.
• Future Growth: The 200 MW plan suggests ongoing capital deployment opportunities in renewables.

Investors should monitor the uptake of SRECs and any impact on customer acquisition or retention rates. The 4% premium on SRECs could provide a modest revenue stream, but more importantly, it gauges market willingness to pay for green energy, informing future investment decisions.

Former ash landfill in Berkeley County to be repurposed for clean energy source

FAIRMONT, W.Va., Sept. 23, 2024 /PRNewswire/ -- Mon Power and Potomac Edison, subsidiaries of FirstEnergy Corp. (NYSE: FE), have begun construction on their third utility-scale solar site in West Virginia to help meet the state's electricity needs and further encourage economic development.

The Marlowe solar project is located along Interstate 81 and the Potomac River on a 36-acre property in Berkeley County that was previously an ash disposal site for the former R. Paul Smith Power Station. In 2022, after removing more than three million tons of ash, FirstEnergy successfully completed the closure of the landfill, paving the way for its redevelopment as part of the companies' solar program.

Dan Rossero, Vice President of FirstEnergy's West Virginia Generation: "The redevelopment of this site into a clean, renewable energy source is aligned with our commitment to support economic growth in West Virginia as well as our efforts to build a more sustainable future for the communities we serve."

Expected to be complete in 2025, the Marlowe solar facility will produce up to 5.75 megawatts of renewable power. One megawatt of solar energy powers a national average of 173 homes, according to the Solar Energy Industries Association. As with its other solar projects, Mon Power and Potomac Edison are using local union workers for construction, and the solar panels, racking system steel and supporting electrical equipment are made in the United States.

The project is part of the companies' West Virginia solar program, which supports a 2020 bill passed by the West Virginia Legislature that authorizes electric utilities to own and operate up to 200 megawatts of solar renewable generation facilities to help meet the state's electricity needs. The addition of new renewable generation also encourages economic development in West Virginia, as a growing number of companies require that a portion of the electricity they purchase be generated by renewable sources.

Mon Power and Potomac Edison are developing five solar projects that will total 50 megawatts of renewable solar generation, the first phase of 200 megawatts the companies plan to develop over time. The companies completed their first solar project at Fort Martin Power Station in Maidsville (18.9 megawatts) in January and started construction in March at a second site in Rivesville (5.5 megawatts).

Combined, the five projects will create more than 87,000 solar renewable energy credits (SRECs) available for purchase by customers who support renewable energy in West Virginia. SRECs are certificates that represent the environmental attributes of solar power and prove solar energy was generated on the purchasers' behalf. For every megawatt hour of solar renewable electricity generated, one SREC is produced.

Since the inception of the solar program, Mon Power and Potomac Edison have enrolled residential customers as well as large commercial and institutional customers including the National Energy Technology Laboratory (NETL) in Morgantown and the town of Harpers Ferry. The cost to purchase SRECs through the program is 4 cents per kilowatt hour in addition to normal rates. To subscribe or find out more about the solar program, Mon Power and Potomac Edison customers in West Virginia can visit firstenergycorp.com/WVsolar or call 1-800-505-7283.

The companies will seek final approval from the Public Service Commission of West Virginia to build solar sites in Davis, Tucker County (11.5 MW), and Weirton, Hancock County (8.4 MW), when they have customer commitments for 85% of the renewable energy credits generated by those projects.

Mon Power serves about 395,000 customers in 34 West Virginia counties. Follow Mon Power at mon-power.com, on X @MonPowerWV, and on Facebook at facebook.com/MonPowerWV.

Potomac Edison serves about 285,000 customers in seven counties in Maryland and 155,000 customers in the Eastern Panhandle of West Virginia. Follow Potomac Edison at potomacedison.com, on X @PotomacEdison, and on Facebook at facebook.com/PotomacEdison.

FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation's largest investor-owned electric systems, serving more than six million 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 online at firstenergycorp.com and on X @FirstEnergyCorp.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/mon-power-and-potomac-edison-break-ground-on-third-solar-site-302255870.html

SOURCE FirstEnergy Corp.

FAQ

What is the capacity of the Marlowe solar project being constructed by Mon Power and Potomac Edison (FE)?

The Marlowe solar project, currently under construction by Mon Power and Potomac Edison, will have a capacity to produce up to 5.75 megawatts of renewable power when completed in 2025.

How many solar projects have Mon Power and Potomac Edison (FE) completed or started in West Virginia?

Mon Power and Potomac Edison have completed one 18.9-megawatt project at Fort Martin Power Station, started construction on a 5.5-megawatt site in Rivesville, and now begun work on the Marlowe project, totaling three solar sites in various stages of development in West Virginia.

What is the total planned solar generation capacity for Mon Power and Potomac Edison (FE) in West Virginia?

Mon Power and Potomac Edison plan to develop a total of 200 megawatts of solar renewable generation in West Virginia over time, with the first phase consisting of five projects totaling 50 megawatts.

How much do Solar Renewable Energy Credits (SRECs) cost for Mon Power and Potomac Edison (FE) customers in West Virginia?

Mon Power and Potomac Edison customers in West Virginia can purchase Solar Renewable Energy Credits (SRECs) at a cost of 4 cents per kilowatt hour, in addition to their normal electricity rates.