Mon Power and Potomac Edison Propose Environmental Compliance Program for Power Plants
Mon Power and Potomac Edison, subsidiaries of FirstEnergy (NYSE: FE), have proposed a $142 million environmental compliance program for their Fort Martin and Harrison power plants. The plan aims to meet U.S. EPA wastewater treatment guidelines, with completion expected by the end of 2025. Upgrades will facilitate continued operation until 2035 and 2040, creating local jobs and reducing environmental impact. Cost will be covered by a ratepayer surcharge starting at 51 cents per month for residential customers in West Virginia.
- Proposed upgrades support continued operation of plants until 2035 and 2040.
- Creation of local jobs through the environmental compliance program.
- Cost covered by a modest ratepayer surcharge, enhancing community investment.
- Ratepayer surcharge of 51 cents per month may burden customers.
FAIRMONT, W.Va., Dec. 17, 2021 /PRNewswire/ -- Mon Power and Potomac Edison, subsidiaries of FirstEnergy Corp. (NYSE: FE), have applied to the Public Service Commission of West Virginia for approval to undertake a multi-year environmental compliance program at the companies' two regulated power plants, Fort Martin Power Station in Maidsville and Harrison Power Station in Haywood. The approximately
If approved, the companies would complete the work by the end of 2025, reducing the environmental impact of the two facilities. The upgrades also support the continued operation of Fort Martin and Harrison beyond the 2025 compliance deadline, until their anticipated retirement dates of 2035 and 2040, respectively.
"The proposed upgrades will create local jobs and allow us to continue to operate our plants into the next decade for the benefit of our customers in West Virginia, while also minimizing their impact on the environment," said Jim Myers, president of West Virginia operations for FirstEnergy.
The cost of the improvements would be funded through a ratepayer surcharge that would start at 51 cents per month for the average residential customer in West Virginia when the first projects are implemented in 2024.
Fort Martin and Harrison were placed into service in the late 1960s and early 1970s, and such plants historically have an average life span of approximately 60 years. The future retirement of either facility would be subject to commission review and approval.
In the years ahead, Mon Power and Potomac Edison will work to evaluate the most reliable and cost-effective ways to replace the significant capacity of the plants. The two plants generate 3,080 megawatts of power combined.
Last year, FirstEnergy announced a pledge to achieve carbon neutrality by 2050. As part of its comprehensive climate strategy, the company conveyed its intent to thoughtfully transition its generation fleet within that time frame.
Mon Power and Potomac Edison recently submitted an application to the Public Service Commission of West Virginia to build five utility-scale solar energy projects throughout the companies' West Virginia service territory that would generate 50 megawatts of clean, renewable energy.
Mon Power serves about 395,000 customers in 34 West Virginia counties. Follow Mon Power at www.mon-power.com, on Twitter @MonPowerWV, and on Facebook at www.facebook.com/MonPowerWV.
Potomac Edison serves about 275,000 customers in seven counties in Maryland and 151,000 customers in the Eastern Panhandle of West Virginia. Follow Potomac Edison at www.potomacedison.com, on Twitter @PotomacEdison, and on Facebook at www.facebook.com/PotomacEdison.
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 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 www.firstenergycorp.com and on Twitter @FirstEnergyCorp.
Forward-Looking Statements: This news release includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties and readers are cautioned not to place undue reliance on these forward-looking statements. These statements include declarations regarding management's intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms "anticipate," "potential," "expect," "forecast," "target," "will," "intend," "believe," "project," "estimate," "plan," and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, which may include the following: the completion of the transactions contemplated by the agreements governing the sale of the minority interest in FET and the common stock issuance on the anticipated terms and timing or at all, including the receipt of regulatory approvals; the potential liabilities, increased costs and unanticipated developments resulting from governmental investigations and agreements, including those associated with compliance with or failure to comply with the Deferred Prosecution Agreement entered into on July 21, 2021 with the U.S. Attorney's Office for the Southern District of Ohio; the risks and uncertainties associated with government investigations regarding House Bill 6, as passed by Ohio's 133rd General Assembly, and related matters, including potential adverse impacts on federal or state regulatory matters, including, but not limited to, matters relating to rates; the potential of non–compliance with debt covenants in the company's credit facilities; the risks and uncertainties associated with litigation, arbitration, mediation and similar proceedings; legislative and regulatory developments, including, but not limited to, matters related to rates, compliance and enforcement activity; including the final approval by the Public Utilities Commission of Ohio ("PUCO") of the Unanimous Stipulation and Recommendation filed by the Company and eleven other parties with the PUCO on November 1, 2021; the ability to accomplish or realize anticipated benefits from the company's FE Forward initiative and its other strategic and financial goals, including, but not limited to, maintaining financial flexibility, overcoming current uncertainties and challenges associated with the ongoing government investigations, executing the company's transmission and distribution investment plans, greenhouse gas reduction goals, controlling costs, improving the company's credit metrics, growing earnings, and strengthening the company's balance sheet through the sale of a minority interest in FET and the common stock issuance; economic and weather conditions affecting future operating results, such as a recession, significant weather events and other natural disasters, and associated regulatory events or actions in response to such conditions; mitigating exposure for remedial activities associated with retired and formerly owned electric generation assets; the ability to access the public securities and other capital and credit markets in accordance with the company's financial plans, the cost of such capital and overall condition of the capital and credit markets affecting the company, including the increasing number of financial institutions evaluating the impact of climate change on their investment decisions; the extent and duration of the COVID-19 pandemic and the impacts to the company's business, operations and financial condition resulting from the outbreak of COVID-19, including, but not limited to, disruption of businesses in the company's territories and governmental and regulatory responses to the pandemic; the effectiveness of the company's pandemic and business continuity plans, the precautionary measures the company is taking on behalf of its customers, contractors and employees, its customers' ability to make their utility payment and the potential for supply-chain disruptions; actions that may be taken by credit rating agencies that could negatively affect either the company's access to or terms of financing or its financial condition and liquidity; changes in assumptions regarding economic conditions within the company's territories, the reliability of its transmission and distribution system, or the availability of capital or other resources supporting identified transmission and distribution investment opportunities; changes in customers' demand for power, including, but not limited to, the impact of climate change or energy efficiency and peak demand reduction mandates; changes in national and regional economic conditions, including inflationary pressure, affecting the company and/or its customers and those vendors with which the company does business; the risks associated with cyber-attacks and other disruptions to the company's, or its vendors', information technology system, which may compromise the company's operations, and data security breaches of sensitive data, intellectual property and proprietary or personally identifiable information; the ability to comply with applicable reliability standards and energy efficiency and peak demand reduction mandates; changes to environmental laws and regulations, including, but not limited to, those related to climate change; changing market conditions affecting the measurement of certain liabilities and the value of assets held in the company's pension trusts, or causing the company to make contributions sooner, or in amounts that are larger, than currently anticipated; labor disruptions by the company's unionized workforce; changes to significant accounting policies; any changes in tax laws or regulations, or adverse tax audit results or rulings; and the risks and other factors discussed from time to time in the company's Securities and Exchange Commission ("SEC") filings. Dividends declared from time to time on FirstEnergy's common stock during any period may in the aggregate vary from prior periods due to circumstances considered by FirstEnergy's Board of Directors at the time of the actual declarations. A security rating is not a recommendation to buy or hold securities and is subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating. These forward-looking statements are also qualified by, and should be read together with, the risk factors included in FirstEnergy's filings with the SEC, including, but not limited to, the most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The foregoing review of factors also should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor assess the impact of any such factor on FirstEnergy's business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. FirstEnergy expressly disclaims any obligation to update or revise, except as required by law, any forward-looking statements contained herein or in the information incorporated by reference as a result of new information, future events or otherwise.
View original content to download multimedia:https://www.prnewswire.com/news-releases/mon-power-and-potomac-edison-propose-environmental-compliance-program-for-power-plants-301447533.html
SOURCE FirstEnergy Corp.
FAQ
What is the environmental compliance program proposed by FirstEnergy's subsidiaries?
How much will the ratepayer surcharge be for FirstEnergy customers in West Virginia?
When will the environmental upgrades at Fort Martin and Harrison power plants be completed?
What will happen to Fort Martin and Harrison power plants after 2025?
