FAIRMONT, W. Va., Nov. 11, 2016 /PRNewswire/ -- FirstEnergy Corp. (NYSE: FE) subsidiary Mon Power today announced it has initiated a review of its ownership stake in the Bath County Pumped Storage Project located in Warm Springs, Virginia. The review is driven by recent changes in the PJM capacity market which in the future are expected to reduce sharply Mon Power's capacity revenues from the facility. There is no assurance that this review by Mon Power will result in any alternatives being announced or consummated.
Mon Power has an indirect 487-megawatt (MW) ownership interest in the pumped storage hydroelectric generating station which consists of two large reservoirs and a powerhouse interconnected by tunnels. Virginia Electric and Power Company, a subsidiary of Dominion Resources, Inc., is the majority owner of the station and manages its operation.
PJM's new capacity rule reduces the value of pumped storage generation stations because they cannot produce electricity continuously during all hours of the day. Under the new rules, Bath's capacity revenues for Mon Power will be reduced by about half.
PJM is the regional transmission operator that operates a competitive wholesale electricity market and manages the electric transmission grid in all or parts of 13 states and the District of Columbia to help ensure reliability for more than 61 million people.
Capacity is the commitment of generation or other resources to be available to provide electricity in the future, particularly when demand surges during extreme cold snaps or heat waves.
Mon Power supplies electricity to both its 385,500 customers and 137,000 Potomac Edison customers in the state's Eastern Panhandle. FirstEnergy is committed to supplying its West Virginia customers with a supply of safe, reliable, cost-effective electricity for years to come.
FirstEnergy is 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 Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate more than 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions, while its generation subsidiaries control nearly 17,000 megawatts of capacity from a diversified mix of scrubbed coal, non-emitting nuclear, natural gas, hydro and other renewables. Follow FirstEnergy on Twitter @FirstEnergyCorp or online at www.firstenergycorp.com.
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SOURCE FirstEnergy Corp.