Six First Energy Corp subsidiaries – Met-Ed, Penelec, Penn Power, West Penn Power, Keystone Appalachian Transmission Company (KATCo) and Mid-Atlantic Interstate Transmission, LLC (MAIT) – announced last week that they had filed a settlement agreement with the Pennsylvania Public Utility Commission (PaPUC).
The settlements are in regard to the joint consolidation application that would merge First Energy’s four Pennsylvania electric distribution companies into one to focus on delivering safe, reliable electricity to more than two million customers across the state.
As part of the settlement, income eligible customers will receive a total of $650,000 in bill assistance over five years, officials said. Additionally, the settlement outlines a way for the company to track cost savings realized through consolidated operations, that will be used to give customers further cost saving as part of future base rate reviews.
If approved by PaPUC, the settlement would help move the consolidation application forward into a single legal entity called FirstEnergy Pennsylvania Electric Company (FE PA). The companies would continue to do business under their existing local brand names – Met-Ed, Penelec, Penn Power and West Penn Power.
The companies have request that PaPUC approve their application no later than December 2023. Officials said the companies are also awaiting approval of the consolidation from commissions in New York.
“We appreciate the hard work of involved parties in negotiating an agreement that will provide long-lasting benefits to customers, regulators, stakeholders and employees alike while continuing to deliver safe and reliable electric service to our customers,” Scott Wyman, president of FirstEnergy’s Pennsylvania operations, said. “We anticipate consolidated operations to produce cost savings, which would be returned to our customers as part of future rate reviews.”