Mon Power and Potomac Edison File Plan with State and Federal Regulators to Secure Generation Proposal Would Lower Rates for Companies' West Virginia Customers and Yield Additional Economic Benefits
FirstEnergy Corp. (NYSE: FE) subsidiaries Mon Power and Potomac Edison filed a plan seeking regulatory approval to acquire the Pleasants Power Station (Pleasants) in Willow Island, W.Va., as the least-cost source to meet a steadily increasing capacity shortfall in the companies' West Virginia service areas.
If the purchase of Pleasants is approved by the Public Service Commission of West Virginia (WV PSC) and the Federal Energy Regulatory Commission (FERC), monthly bills for typical Mon Power and Potomac Edison West Virginia residential customers using 1,000 kilowatt-hours (kWh) of electricity per month would drop about $1 per month, or $12 per year.
The proposed Pleasants purchase also will help preserve coal-related jobs and provide other economic benefits. The plant employs about 200 people, consumes more than 3.4 million tons of coal per year and pays millions of dollars in annual property taxes.
The latest energy forecasts showed a capacity shortfall is expected to exceed 1,400 megawatts (MW) by 2027 for Mon Power, which also provides capacity and electricity for Potomac Edison customers in the state's Eastern Panhandle. Capacity is the commitment of generation or other resources to be available to provide electricity, particularly when demand surges during extreme cold snaps or heat waves.
To address future capacity needs, a competitive request for proposals (RFP) process was implemented using a nationally recognized, independent consultant. After evaluating the proposals, the consultant recommended to Mon Power the purchase of Pleasants as the most economical option. At a cost of $195 million, the proposed acquisition of Pleasants from FirstEnergy affiliate Allegheny Energy Supply is significantly less expensive than any other bid.
"The purchase of the Pleasants plant is a win-win-win for our West Virginia customers by securing a local, reliable source of electricity to meet future needs, while lowering rates and continuing significant economic benefits for Pleasants County and surrounding areas," said Holly Kauffman, president of FirstEnergy's West Virginia operations. "The Pleasants option is expected to save customers money, preserve vital jobs in the coal industry and provide millions of dollars paid in taxes to support local services and schools."
The Pleasants plant capacity is about 1,300 MW. The RFP also requested up to 100 MWs of demand-response resources, but no such proposals were received.
Mon Power supplies electricity to both its 385,500 customers and 137,000 Potomac Edison customers in the state's Eastern Panhandle.
FirstEnergy Corp. is dedicated to 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 more than 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions, while its generation subsidiaries control nearly 17,000 megawatts of capacity from a diversified mix of scrubbed coal, non-emitting nuclear, natural gas, hydro and other renewables. Follow FirstEnergy on Twitter @FirstEnergyCorp or online at www.firstenergycorp.com.
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