FirstEnergy Corporation subsidiaries Mon Power and Potomac Edison, as well as the majority of the parties to the companies' generation transaction proceedings involving the Harrison Power Station, filed a comprehensive settlement agreement Wednesday with the Public Service Commission (PSC) of West Virginia.
If approved, the settlement would be expected to reduce an average residential customer's electric bill by approximately $1.50 a month, according to a news release from FirstEnergy.
Those parties signing the settlement agreement include the PSC staff; the W.Va. Energy Users Group; the Consumer Advocate Division; the W.Va. state Building Construction Trades Council, AFL-CIO; the Utilities Workers Union of America, AFL_CIO and its Local 304; Local Union 2357 of the International Brotherhood of Electrical Workers, AFL-CIO; and the W.Va. Coal Association, officials said.
A typical Mon Power and Potomac Edison residential customer using 1,000 kilowatt-hours of electricity per month would be expected to see their current $95.13 monthly bill drop to approximately $93.71 if the agreement is approved by the PSC, according to the news release.
Mon Power and Potomac Edison commitments in the settlement include increasing employment levels in the state by an additional 50 employees either employed by Mon Power, Potomac Edison or by an affiliate of the companies; Economic Stability Credits of approximately $2.3 million over a two-year period for large commercial and industrial customers to benefit the regional economy; three separate $500,000 contributions over five years to the Dollar Energy Fund, the W.Va. Office of Economic Opportunity's weatherization program, and the Governor's W.Va. Kids First Initiative; and development of Phase II Energy Efficiency Plan to achieve 0.5 percent reductions of 2013 distribution sales in the delivery year ending May 21, 2018, according to the news release.
The parties have requested that the PSC issue a final order approving the settlement agreement and the transaction by August 30, 2013. Officials said that if the settlement is approved, the transaction would likely close either in the third quarter or early in the fourth quarter.
The proposed transaction, which represents a 1.1 billion investment by Mon Power, has already been reviewed and approved by the Federal Energy Regulatory Commission. According to the news release, Mon Power will purchase about 80 percent of the Harrison Power Station from FirstEnergy subsidiary Allegheny Energy Supply under the proposed plan, "adding to its approximate 20 percent share and giving it sole ownership of the 1,984-megawatt (MW) supercritical coal plant in Haywood." Mon Power will also transfer its approximate eight percent interest in the Pleasants Power Station to Allegheny Energy Supply as part of the transaction.
Mon Power provides service to its 385,500 customers as well as 132,000 Potomac Edison customers in the state's Eastern Panhandle, according to the news release.