Contract buyout expected
to save customers millions by ending power
generation contract before 2030
WILLIAMSPORT, Md., April 18,
2023 /PRNewswire/ -- Potomac Edison, a subsidiary of
FirstEnergy Corp. (NYSE: FE), has submitted a proposal to the
Maryland Public Service Commission (PSC) to buy out its contract
with AES's Warrior Run generating station approximately seven years
early, which is forecasted to save customers nearly $80 million over that period.
The contract with AES Warrior Run for the coal-fired power
station in Cumberland, Maryland,
was established in 2000 as a requirement of the Public Utility
Regulatory Policies Act (PURPA) passed by Congress in 1978. Potomac
Edison's Maryland customers
currently pay a Cogeneration PURPA Project Surcharge on their
electric bill based on the price at which Potomac Edison can resell
the power it purchased from Warrior Run. The surcharge amount can
vary greatly year-to-year due to fluctuations in the competitive
market.
"By successfully negotiating a buyout of the Warrior Run
contract, Potomac Edison is not only potentially saving customers a
substantial amount of money, but also likely helping to stabilize
their bills by eliminating charges that are based on a volatile
market," said Linda Moss, president
of Maryland Operations. "This is an important step toward keeping
bills affordable and more predictable for our customers."
If the contract buyout Potomac Edison negotiated with AES
Warrior Run is approved by the PSC, customers can expect to see a
lesser, set charge related to the cost to end the contract early
rather than the fluctuating charge based on wholesale energy prices
and capacity. An early end to the Warrior Run contract has an
estimated 90% probability of saving customers money over the
remaining term of the agreement.
Potomac Edison serves about 285,000 customers in all or parts of
Allegany, Carroll, Frederick, Garrett, Howard, Montgomery and Washington counties. 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.
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SOURCE FirstEnergy Corp.