FAIRMONT, W.Va., Jan. 29, 2013 /PRNewswire/ -- FirstEnergy Corp. (NYSE: FE) subsidiaries Mon Power and Potomac Edison today provided supplemental rate information to the Public Service Commission (PSC) of West Virginia about the companies' proposed plan to help ensure a continued supply of reliable, low-cost electricity for their West Virginia customers in the years ahead.
Under the proposed plan, Mon Power will purchase 80 percent of the Harrison Power Station from FirstEnergy subsidiary Allegheny Energy Supply, adding to its 20 percent share and giving it sole ownership of the 1,984-megawatt (MW) supercritical coal plant in Haywood, W. Va.
If the plan is approved by the PSC, a typical Mon Power and Potomac Edison residential customer using 1,000 kilowatt-hours (kWh) of electricity per month is expected to pay less than $1 more on their monthly bill compared to 2012.
Effective January 1, 2013, the average monthly bill for a residential customer is $94.31, which reflects a recent 5 percent rate decrease as a result of lower coal and purchased power costs. If approved by the PSC, the plan would result in an overall average bill of $99.94. In 2012, the average bill for a customer using 1,000 kWh of electricity was $99.07.
The increase would be reflected in a temporary surcharge that would remain in place until the conclusion of Mon Power's and Potomac Edison's next base rate case. The companies will file a base rate case no later than six months from the date of the completion of the Harrison plant transaction.
In November 2012, Mon Power and Potomac Edison filed a plan with the PSC that was designed to protect its customers from the unpredictable spot power market by using existing generation resources, resulting in greater rate stability for customers. The plan would help ensure that the companies would have adequate resources to meet anticipated annual customer usage growth of 1.4 percent per year.
The proposed transaction benefits customers and the West Virginia economy. Power from the Harrison plant, historically a source of reliable, low-cost electricity, is expected to be less expensive than electricity procured from alternative, comparable sources. Located in the heart of Mon Power's service territory, Harrison produces electricity with West Virginia coal. The transaction would preserve the opportunity to continue to use such coal, sustaining employment levels and helping local economies. Among the nation's largest and cleanest coal-fired plants, Harrison is equipped with modern emission controls.
If approved by the PSC as filed, the plan represents an approximate $1 billion net investment by Mon Power, and also requires approval from the Federal Energy Regulatory Commission.
In West Virginia, Mon Power serves 385,000 customers and Potomac Edison provides service to 132,000 customers in the state's eastern panhandle.
FirstEnergy is a diversified energy company 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 Maryland, Ohio, Pennsylvania, New Jersey, New York and West Virginia. Its generation subsidiaries control more than 20,000 megawatts of capacity from a diversified mix of scrubbed coal, non-emitting nuclear, natural gas, hydro, pumped-storage hydro and other renewables. Follow FirstEnergy on Twitter @FirstEnergyCorp.
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SOURCE FirstEnergy Corp.