FirstEnergy Pennsylvania Utilities File Plans to Purchase Electric Generation Supply Beginning in 2023

Tuesday 21 December 2021, READING, Pa.

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.

Source: FirstEnergy ( original url )

 back to News