WASHINGTON, Nov. 27, 2012 /PRNewswire/ -- Through a competitive bidding process conducted by economists at The Brattle Group, FirstEnergy Corp.'s (NYSE: FE) subsidiaries Metropolitan Edison Company, Pennsylvania Electric Company, and Pennsylvania Power Company have successfully solicited contracts for 14,500 Solar Photovoltaic Alternative Energy Credits (SPAECs) annually over a ten-year period. One SPAEC represents the solar renewable energy attributes of one megawatt-hour of generation from a solar generating facility.
The procurement was part of the Companies' Revised Default Service Plan approved by the Pennsylvania Public Utility Commission to competitively procure SPAECs to meet the state's Alternative Energy Portfolio Standards.
The average cost to the Companies is $61.60 per SPAEC, with deliveries scheduled to begin in June 2013 and last through May 2023. The results of the procurement were approved by the Pennsylvania Public Utility Commission on November 20, 2012. Costs incurred to meet solar requirements have been reflected in customer bills since January 2011. The costs of the SPAECs purchased in the current RFP will be reflected beginning in June of 2013.
The Brattle Group has extensive experience managing procurement and auction processes for utilities and other owners of electric power assets, including procurements for renewable energy credits and auctions of generation assets and transmission rights. For more information, please contact Stephanie Schwartz at Stephanie.Schwartz@brattle.com or call 1.617.864.7900.
SOURCE The Brattle Group