FirstEnergy Pennsylvania utilities file plan to purchase electric generation supply beginning June 2013 for customers who choose not to shop with alternate suppliers

Tracy McDonald

READING, Pennsylvania , November 18, 2011 (press release) – FirstEnergy's (NYSE: FE) Metropolitan Edison (Met-Ed), Pennsylvania Electric (Penelec), Pennsylvania Power (Penn Power), and West Penn Power utility companies have filed a plan with the Pennsylvania Public Utility Commission (PPUC) to procure electric generation supply beginning June 2013 for customers who choose not to shop with alternate suppliers. The companies, which do not own any electric generating plants, serve approximately 2 million customers in Pennsylvania. The utilities will seek generation supply through an auction process to ensure customers have a secure supply of power.

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 auctions in November 2012 and January 2013 , with generation prices calculated based on a blended average by customers' class. The process will ensure the confidentiality of information provided by bidders, who 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 and a separate bidding process is planned in order to meet a portion of the solar energy requirements through several requests for proposals for 10-year contracts for the purchase of solar Renewable Energy Credits.

Additionally, the companies have made several proposals to enhance retail competition in their service territories, including a customer referral program and a voluntary competitive bid process for retail customers.

The companies expect that the PPUC will rule on their Default Service Program petition in 2012.

FirstEnergy is a diversified energy company dedicated to safety, reliability and operational excellence. Its 10 electric distribution companies comprise the nation's largest investor-owned electric system. Its diverse generating fleet features non-emitting nuclear, scrubbed baseload coal, natural gas, and pumped-storage hydro and other renewables, and has a total generating capacity of nearly 23,000 megawatts.

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