Attached files
Exhibit
99.1
| FirstEnergy Corp. | For Release: March 23, 2010 | |
| 76 South Main Street | ||
| Akron, Ohio 44308 | ||
| www.firstenergycorp.com | ||
| News Media Contact: | Investor Contact: | |
| Ellen Raines | Ron Seeholzer | |
| (330) 384-5808 | (330) 384-5415 |
FIRSTENERGY OHIO UTILITIES FILE
STIPULATED
ELECTRIC
SECURITY PLAN
Proposal
Offers Long-term Rate Stability,
Support
for Economic Development, Jobs and Infrastructure Investments
Akron, Ohio – Ohio Edison, The Cleveland
Electric Illuminating Company and Toledo Edison, utility companies of Akron,
Ohio-based FirstEnergy Corp. (NYSE: FE), today filed a stipulated Electric
Security Plan (ESP) with the Public Utilities Commission of Ohio
(PUCO). The stipulated ESP has the support of a broad and diverse
number of parties, including the PUCO Staff, the Ohio Schools Council, the City
of Cleveland, Ohio Partners for Affordable Energy, hospitals, manufacturers and
competitive electricity suppliers.
“We appreciate the efforts of the signatory
parties to reach an agreement that will provide rate
stability for customers, support jobs and economic development in our
communities, and encourage continued investment in our utility infrastructure,”
said Anthony J. Alexander, president and chief executive officer of
FirstEnergy. “This proposal also supports the continued development
of the competitive electricity marketplace in Ohio and provides support for
low-income customers and energy efficiency enhancements.”
Under the plan, which would cover the period of
June 1, 2011, through May 31, 2014, a competitive bidding process (CBP) would be
used to establish generation supply and pricing for customers who do not choose
alternative suppliers. The CBP would use a descending-clock format
similar to the successful process used by the companies in May
2009. There would be four separate bidding sessions – one each in
July 2010, October 2010, July 2011 and July 2012 – combining different contract
lengths and customer load amounts.
The plan also calls for base distribution rates
to remain in place and provides for the utilities to recover necessary
investments made in the delivery system. Recovery of these costs
would replace the existing Delivery Service Improvement rider, which ends
December 31, 2011.
In addition, the companies would provide $3
million for economic development and jobs support in their service territories,
$1.5 million for low-income customer assistance programs and $15 million for a
continuation of the Community Connections program. Also, customers
who are part of the Percentage of Income Payment Plan (PIPP) would receive a 6
percent discount on the generation portion of their bills, based on the results
of the CBP.
The plan also outlines support for energy
efficiency – including arrangements with large customers to help the utilities
cost-effectively meet state mandates for reducing usage and peak demand – and
resolves certain issues related to funding for implementation of a smart grid
pilot program that was part of a federal stimulus grant last year.
Under the plan, the companies would not recover
from customers certain costs related to the integration of American Transmission
Systems, Inc. into PJM Interconnection, L.L.C.
In addition to the
Staff of the PUCO, the Ohio Schools Council, the City of Cleveland and Ohio
Partners for Affordable Energy, the stipulated ESP has the support of the Ohio
Hospital Association; Association of Independent Colleges and Universities of
Ohio; Industrial Energy Users – Ohio; The Ohio Manufacturers’ Association; Ohio
Energy Group; Nucor Steel Marion, Inc.; Material Sciences Corporation;
Constellation Energy Commodities Group, Inc.; Constellation NewEnergy, Inc.;
Morgan Stanley Capital Group, Inc.; and FirstEnergy Solutions.
In order to begin the CBP in July, the
companies have requested that the PUCO rule on the stipulated ESP on an
expedited basis.
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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 4.5 million customers served, within a
36,100-square-mile area of Ohio, Pennsylvania and New Jersey; and its generation
subsidiaries control more than 14,000 megawatts of capacity.
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,
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 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.
(032310)
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