FirstEnergy subsidiaries file settlement with the Pennsylvania PUC
FirstEnergy Corporation’s announced Thursday its subsidiaries – Met Ed, Penelec, Penn Power, West Penn Power, Keystone Appalachian Transmission Company (KATCO), and Mid-Atlantic Interstate Transmission, LLC (MAIT) – had filed settlement agreements with the Pennsylvania Public Utility Commission (Pa PUC) in regard to their application to merge into a single consolidated operating company.
The merger would bring four of the electric distribution companies into a single company to focus on delivering electricity to more than 2 million customers. As part of the proposed settlement, income-eligible customers would get $650,000 in bill assistance over a five year period, and the company would put in place a mechanism for tracking cost savings through consolidate operations, which would then be returned to customers during base rate reviews.
If approved by the PaPUC, the settlement will help move the companies forward toward consolidation as a single legal entity called FirstEnergy Pennsylvania Electric Company (FE PA). However, the distribution companies would continue to do business under their existing local brand names – Met-Ed, Penelec, Penn Power and West Penn Power.
The companies have requested that PaPUC approve the application no later than December 2023. Additional commission approval is required in New York. The Federal Energy Regulatory Commission (FERC) has approved the companies’ consolidation application in a related proceeding, the company said.
The companies said that by consolidating into a larger, combined company, FE PA would have greater access to capital at more favorable interest rates which would allow it to invest in grid enhancements and customer service.
“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.”
