Maryland PSC approves Potomac Edison proposal to buy out AES contract
Potomac Edison received approval from the Maryland Public Service Commission (PSC) last week to buy out its contract with AES’s Warrior Run generating station approximately seven years early.
The move, Potomac Edison, a subsidiary of FirstEnergy, said, would potentially save its customers nearly $80 million.
In 2000, Potomac Edison signed a contract with AES Warrior Run for power generated by the coal-fired station in Cumberland, Maryland. Though the contract was scheduled to end in 2030, Potomac Edison proposed to end the contract early. Currently, Potomac Edison’s Maryland customers pay a surcharge on their electric il based on the price the company purchased from Warrior Run. Officials said the surcharge amount has varied greatly year-to-year due to market fluctuations.
“Potomac Edison is committed to helping customers save money and stabilize their electric bills, and this agreement is a step toward keeping bills affordable and more predictable for our customers,” said Linda Moss, president of FirstEnergy’s Maryland operations.
With PSC’s approval, Potomac will buy out the contract. Customers will continue to see the surcharge on their bills through the term of the buyout, however customers are also forecast to save a substantial amount of money and see their bill stabilize by eliminating charges based on a volatile market, officials said.
Potomac Edison provides energy for about 285,000 customers in Allegany, Carrol, Frederick, Garrett, Howard, Montgomery and Washington counties in Maryland.
