FirstEnergy’s Pennsylvania subsidiaries settle consolidation proceeding

FirstEnergy’s subsidiaries – Met-Ed, Penelec, Penn Power, West Penn Power, Keystone Appalachian Transmission Company and Mid-Atlantic Interstate – have filed a settlement agreement with the Pennsylvania Public Utility Commission regarding their joint application to merge FirstEnergy’s four Pennsylvania electric distribution companies into a single consolidated operating company. Under the terms of the proposed settlement, income-eligible customers would receive a total of $650K in bill assistance over five years. In addition, the settlement outlines a mechanism for tracking cost savings realized through consolidated operations, which would be returned to customers as part of future base rate reviews. The settlement, if approved by the PaPUC, helps enable the path forward for the companies’ March 2023 application filed with the PaPUC that would consolidate the subsidiaries into a single legal entity called FirstEnergy Pennsylvania Electric Company. The distribution companies will continue to do business publicly under the existing local brand names. The companies have requested PaPUC approval of their application no later than December 2023 and are also awaiting commission approval in New York. The Federal Energy Regulatory Commission approved the companies’ consolidation application on August 14. Customer rates and terms and conditions of service would not change as a result of the consolidation. By consolidating to a larger, combined company, FE PA anticipates gaining greater access to capital at more favorable interest rates.