Proposed settlement would provide cost
savings to customers, particularly those in need
GREENSBURG, Pa., Aug. 31,
2023 /PRNewswire/ -- FirstEnergy Corp's (NYSE:
FE) subsidiaries – Met-Ed, Penelec, Penn Power, West Penn Power,
Keystone Appalachian Transmission Company (KATCo) and Mid-Atlantic
Interstate Transmission, LLC (MAIT) – have filed a settlement
agreement with the Pennsylvania Public Utility Commission (PaPUC)
regarding their joint application to merge FirstEnergy's four
Pennsylvania electric distribution
companies into a single consolidated operating company with a
continued focus on delivering safe, reliable electricity to more
than two million customers in the state.
Under the terms of the proposed settlement, income-eligible
customers would receive a total of $650,000 in bill assistance over five years. In
addition, the settlement outlines a mechanism for tracking cost
savings realized through consolidated operations, which would be
returned to customers as part of future base rate reviews.
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 New
York. In a related proceeding, the Federal Energy Regulatory
Commission (FERC) approved the companies' consolidation application
on August 14, 2023.
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 Pennsylvania
operations. "We anticipate consolidated operations to produce cost
savings, which would be returned to our customers as part of future
rate reviews."
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 Pennsylvania, Industrial Consumer Groups and
Industrial Energy Consumers of
Pennsylvania.
Met-Ed serves approximately 587,000 customers within 3,300
square miles of eastern and southeastern Pennsylvania. Follow Met-Ed on Twitter @Met
Ed and on Facebook at www.facebook.com/MetEdElectric.
Penelec serves approximately 588,000 customers within 17,600
square miles of northern and central Pennsylvania. Follow Penelec on Twitter
@Penelec and on Facebook at www.facebook.com/PenelecElectric.
Penn Power serves more than 170,000 customers in all or parts of
Allegheny, Beaver, Butler, Crawford, Lawrence and Mercer counties in western Pennsylvania. Follow Penn Power on Twitter
@Penn_Power, on Facebook at www.facebook.com/PennPower, and online
at www.pennpower.com.
West Penn Power serves approximately 737,000 customers in 24
counties within central and southwestern Pennsylvania. Follow West Penn Power on
Twitter @W_Penn_Power and on Facebook at
www.facebook.com/WestPennPower.
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.