Met-Ed, Penelec File New Electric Generation Prices

"Price to Compare" Based on Recent Competitive Bidding Results

Oct 29, 2010, 11:08 ET from FirstEnergy

READING, Pa., Oct. 29 /PRNewswire/ -- FirstEnergy (NYSE: FE) announced today that its Metropolitan Edison (Met-Ed) and Pennsylvania Electric (Penelec) utilities have filed new generation prices that will go into effect beginning January 1, 2011, for customers who do not choose alternative suppliers.  The prices, based on results of four competitive bidding sessions conducted since January 2010, will determine customers' Price to Compare (PTC).  The PTC is used to compare the price customers pay for generation service from their utility company with prices offered by competitive suppliers.  

In addition to the PTC, customer bills also include the cost to deliver electricity to customers.  The PTC typically represents about two-thirds of a total bill.  These generation costs are passed along to customers dollar-for-dollar, with no profit to Met-Ed and Penelec.  However, under state law customers have the option to shop for a lower price from a competitive supplier.  Customers can save money by switching to a supplier that offers generation service for less than the PTC or a percentage off the PTC.  Electric generation prices – and the resulting PTCs – will change quarterly.  

"Working with an independent bid manager, we designed a process that would help deliver competitive, market-based prices for our customers," said Douglas S. Elliott, president of Pennsylvania Operations for FirstEnergy.  "Current generation rates have essentially been in effect since 1992 for Met-Ed customers and 1986 for Penelec customers, while the cost to provide the service has increased significantly.  We wanted to ensure that our process would help mitigate price increases as much as possible.  We strongly encourage our customers to shop for electric suppliers who may save them money – the websites www.PApowerswitch.com and www.oca.state.pa.us are fantastic resources."  

Changes to Met-Ed and Penelec Monthly Bills For Residential and Commercial Customers

Current

Monthly Bill

Monthly Bill as

of Jan. 1, 2011

% Increase

PTC as of Jan. 1, 2011

(in cents/kWh)

Met-Ed

Residential (750 kWh/mo.)

$98.33

$100.48

2.2

8.30

Commercial (10,000 kWh/ mo., 25 kW demand)

$987.00

$1,045.69

5.9

8.19

Penelec

Residential (750 kWh/mo.)

$85.35

$99.51

16.6

7.03

Commercial (10,000 kWh/ mo., 25 kW demand)

$792.40

$894.91

12.9

7.24

The delivery charge, or the portion of the bill that covers Met-Ed's or Penelec's costs to deliver electricity, is about one-third of a total bill.  These charges are established through a regulatory process, which includes review and approval by the Pennsylvania Public Utility Commission.

Customers can help manage their overall energy bills by reducing usage and using energy more efficiently.  Many energy-saving tips and information on programs for Met-Ed and Penelec customers are available at www.energysavePA.com, FirstEnergy's website for energy-saving information.

Customers can learn more about shopping with a competitive electric generation supplier by visiting the Pennsylvania Public Utility Commission's website at www.PApowerswitch.com.  Whether customers purchase electricity from a competitive electric generation supplier or from their local utility, the FirstEnergy utility companies will continue to safely deliver electricity, provide billing and customer service support, and respond to outages and other emergencies for all Met-Ed and Penelec customers.

FirstEnergy is a diversified energy company headquartered in Akron, Ohio.  Its subsidiaries and affiliates are involved in the generation, transmission and distribution of electricity, as well as energy management and other energy-related services.  Its seven electric utility operating companies comprise the nation's fifth largest investor-owned electric system based on serving 4.5 million customers in Ohio, Pennsylvania and New Jersey; and its generation subsidiaries control approximately 14,000 megawatts of capacity.  

Met-Ed and Penelec serve approximately 1.2 million customers in 44 Pennsylvania counties.

Forward-Looking Statements: This news release includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties. These statements include declarations regarding management's intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms "anticipate," "potential," "expect," "believe," "estimate" and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual results may differ materially due to the speed and nature of increased competition in the electric utility industry and legislative and regulatory changes affecting how generation rates will be determined following the expiration of existing rate plans in Pennsylvania, the impact of the regulatory process on the pending matters in Ohio, Pennsylvania and New Jersey, business and regulatory impacts from American Transmission Systems, Incorporated's realignment into PJM Interconnection, L.L.C., economic or weather conditions affecting future sales and margins, changes in markets for energy services, changing energy and commodity market prices and availability, financial derivative reforms that could increase our liquidity needs and collateral costs, replacement power costs being higher than anticipated or inadequately hedged, the continued ability of FirstEnergy's regulated utilities to collect transition and other charges or to recover increased transmission costs, operating and maintenance costs being higher than anticipated, other legislative and regulatory changes, revised environmental requirements, including possible greenhouse gas emission and coal combustion regulations, the potential impacts of the U.S. Court of Appeals' July 11, 2008 decision requiring revisions to the Clean Air Interstate Rules and the scope of any laws, rules or regulations that may ultimately take their place, the uncertainty of the timing and amounts of the capital expenditures needed to, among other things, implement the Air Quality Compliance Plan (including that such amounts could be higher than anticipated or that certain generating units may need to be shut down) or levels of emission reductions related to the Consent Decree resolving the New Source Review litigation or other similar potential regulatory initiatives or actions, adverse regulatory or legal decisions and outcomes (including, but not limited to, the revocation of necessary licenses or operating permits and oversight) by the Nuclear Regulatory Commission, Metropolitan Edison Company's and Pennsylvania Electric Company's transmission service charge filings with the Pennsylvania Public Utility Commission, the continuing availability of generating units and their ability to operate at or near full capacity, the ability to comply with applicable state and federal reliability standards, the ability to accomplish or realize anticipated benefits from strategic goals (including employee workforce initiatives), the ability to improve electric commodity margins and to experience growth in the distribution business, the changing market conditions that could affect the value of assets held in FirstEnergy's nuclear decommissioning trusts, pension trusts and other trust funds, and cause it to make additional contributions sooner, or in an amount that is larger than currently anticipated, the ability to access the public securities and other capital and credit markets in accordance with FirstEnergy's financing plan and the cost of such capital, changes in general economic conditions affecting the company, the state of the capital and credit markets affecting the company, interest rates and any actions taken by credit rating agencies that could negatively affect FirstEnergy's access to financing or its costs or increase its  requirements to post additional collateral to support outstanding commodity positions, letters of credit and other financial guarantees, the continuing decline of the national and regional economy and its impact on the company's major industrial and commercial customers, issues concerning the soundness of financial institutions and counterparties with which FirstEnergy does business, the expected timing and likelihood of completion of the proposed merger with Allegheny Energy, Inc., including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed merger that could reduce anticipated benefits or cause the parties to abandon the merger, the diversion of management's time and attention from our ongoing business during this time period, the ability to maintain relationships with customers, employees or suppliers as well as the ability to successfully integrate the businesses and realize cost savings and any other synergies and the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect and the risks and other factors discussed from time to time in its Securities and Exchange Commission filings, and other similar factors. The foregoing review of factors should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor assess the impact of any such factor on FirstEnergy's business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. FirstEnergy expressly disclaims any current intention to update any forward-looking statements contained herein as a result of new information, future events, or otherwise.

SOURCE FirstEnergy



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