The Pennsylvania Public Utility Commission (PaPUC) on Dec. 7 approved the consolidation of FirstEnergy’s four electric subsidiaries – Met-Ed, Penelec, Penn Power and West Penn Power – into one entity.
PaPUC approved an August 2023 settlement agreement with multiple parties to support the joint March 2023 application to consolidate the subsidiaries into one single operating company: First Energy Pennsylvania Electric Company (FE PA). Starting Jan. 1, 2024, the companies will operate as one while continuing to do business under their existing brand names.
Officials said the consolidation will allow the companies to continue to deliver safe, reliable and affordable electrical service to their more than 2 million customers across the state.
As a distribution-only company, FE PA will focus its investments on serving local customers, and will transfer its transmission assets owned and operated by West Penn Power to Keystone Appalachian Transmission Company. The transfer will mean FE PA will not be responsible for financing transmission projects, officials said.
“We anticipate our consolidated operations will produce cost savings, which will be returned to our customers as part of future rate reviews,” Scott Wyman, president of FirstEnergy’s Pennsylvania operations, said. “The transition to a single company will be seamless and should provide long-lasting benefits to customers, regulators, stakeholders and employees alike as we continue to deliver safe and reliable electric service to our customers.”
Under the terms of the consolidation settlement, income-eligible customers will receive $650,000 in bill assistance over the next five years. Additionally, the settlement outlines mechanisms for tracking any cost-savings that come as a result of consolidating.