Maryland PSC approves Potomac Edison proposal

The Maryland Public Service Commission has approved a proposal from Potomac Edison, a subsidiary of FirstEnergy, to buy out its contract with AES’s Warrior Run generating station approximately seven years early, potentially saving customers nearly $80M. The contract with AES Warrior Run for the coal-fired power station in Cumberland, Maryland, was established in 2000 as a requirement of the Public Utility Regulatory Policies Act passed by Congress in 1978. The contract was scheduled to end in 2030. Potomac Edison’s Maryland customers currently pay a Cogeneration PURPA Project Surcharge on their electric bill based on the price at which Potomac Edison can resell the power it purchased from Warrior Run. The surcharge amount has varied greatly year-to-year due to fluctuations in the competitive market. “Potomac Edison is committed to helping customers save money and stabilize their electric bills, and this agreement is a step toward keeping bills affordable and more predictable for our customers,” said Linda Moss, president of FirstEnergy’s Maryland operations.