AKRON, Ohio, July 22 /PRNewswire-FirstCall/ -- FirstEnergy Corp.'s Ohio electric utility companies - Ohio Edison, Cleveland Electric Illuminating and Toledo Edison - today announced that Northeast Ohio Public Energy Council (NOPEC) and Northwest Ohio Aggregation Coalition (NOAC), governmental electric aggregation groups that represent nearly 600,000 customers of the utility companies, have signed a Supplemental Stipulation supporting the companies' Ohio Electric Security Plan (ESP). NOPEC and NOAC join the utilities and 17 other parties, including the cities of Cleveland and Akron, staff of the Public Utilities Commission of Ohio (PUCO) and several manufacturing, education, hospital and consumer groups, in support of the ESP.
"This plan is supported by a broad coalition representing residential, commercial, industrial and low-income customers," said FirstEnergy President and Chief Executive Officer Anthony J. Alexander. "We are hopeful that the PUCO will act soon to approve the ESP so that our customers can take advantage of the benefits offered in this plan."
As part of this agreement, the companies will provide additional benefits to customers, including:
-- $12 million for the companies' Fuel Fund to support low-income payment assistance programs during the three-year plan period, an increase from the $6 million that the companies currently provide -- $300,000 to support energy efficiency and other programs to benefit Toledo Edison customers - consistent with what has been offered to customers in Cleveland and Akron under a previous ESP stipulation -- Support for the continued development of wind and solar facilities in Ohio through long-term contracts to purchase Renewable Energy Credits -- An outside audit of the companies' annual reports of capital improvement investments -- A commitment that customers will not pay certain costs related to transmission projects approved by the PJM Interconnection, a regional transmission organization, for the longer of the five-year period from June 1, 2011, through May 31, 2016, or when the amount of costs avoided by customers totals $360 million, provided PJM's cost allocation methodology is not substantially altered
In addition to the parties who have agreed to support the plan, a regional environmental group has agreed to support aspects related to renewable energy support, and four low-income agencies have agreed not to oppose the ESP.
Under the proposed ESP, which was filed on March 23, 2010, base distribution rates would remain in place through May 31, 2014. The plan also outlines a competitive bidding process that would be used to establish generation supply and pricing for customers who do not choose alternative suppliers. In addition, the companies would provide $3 million for economic development and jobs support in their service territories and $1.5 million for low-income customer assistance programs.
FirstEnergy is a diversified energy company headquartered in Akron, Ohio. Its subsidiaries and affiliates are involved in the generation, transmission and distribution of electricity, as well as energy management and other energy-related services. Its seven electric utility operating companies comprise the nation's fifth largest investor-owned electric system, based on 4.5 million customers served, within a 36,100-square-mile area of Ohio, Pennsylvania and New Jersey; and its generation subsidiaries control more than 14,000 megawatts of capacity.
Forward-Looking Statements: This news release includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties. These statements include declarations regarding management's intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms "anticipate," "potential," "expect," "believe," "estimate" and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual results may differ materially due to the speed and nature of increased competition in the electric utility industry and legislative and regulatory changes affecting how generation rates will be determined following the expiration of existing rate plans in Pennsylvania, the impact of the regulatory process on the pending matters in Ohio, Pennsylvania and New Jersey, business and regulatory impacts from American Transmission Systems, Incorporated's realignment into PJM Interconnection, L.L.C., economic or weather conditions affecting future sales and margins, changes in markets for energy services, changing energy and commodity market prices and availability, replacement power costs being higher than anticipated or inadequately hedged, the continued ability of FirstEnergy's regulated utilities to collect transition and other charges or to recover increased transmission costs, operating and maintenance costs being higher than anticipated, other legislative and regulatory changes, revised environmental requirements, including possible greenhouse gas emission regulations, the potential impacts of the U.S. Court of Appeals' July 11, 2008 decision requiring revisions to the Clean Air Interstate Rules and the scope of any laws, rules or regulations that may ultimately take their place, the uncertainty of the timing and amounts of the capital expenditures needed to, among other things, implement the Air Quality Compliance Plan (including that such amounts could be higher than anticipated or that certain generating units may need to be shut down) or levels of emission reductions related to the Consent Decree resolving the New Source Review litigation or other similar potential regulatory initiatives or actions, adverse regulatory or legal decisions and outcomes (including, but not limited to, the revocation of necessary licenses or operating permits and oversight) by the Nuclear Regulatory Commission, Metropolitan Edison Company's and Pennsylvania Electric Company's transmission service charge filings with the Pennsylvania Public Utility Commission, the continuing availability of generating units and their ability to operate at or near full capacity, the ability to comply with applicable state and federal reliability standards, the ability to accomplish or realize anticipated benefits from strategic goals (including employee workforce initiatives), the ability to improve electric commodity margins and to experience growth in the distribution business, the changing market conditions that could affect the value of assets held in FirstEnergy's nuclear decommissioning trusts, pension trusts and other trust funds, and cause it to make additional contributions sooner, or in an amount that is larger than currently anticipated, the ability to access the public securities and other capital and credit markets in accordance with FirstEnergy's financing plan and the cost of such capital, changes in general economic conditions affecting the company, the state of the capital and credit markets affecting the company, interest rates and any actions taken by credit rating agencies that could negatively affect FirstEnergy's access to financing or its costs or increase its requirements to post additional collateral to support outstanding commodity positions, letters of credit and other financial guarantees, the continuing decline of the national and regional economy and its impact on the company's major industrial and commercial customers, issues concerning the soundness of financial institutions and counterparties with which FirstEnergy does business, the expected timing and likelihood of completion of the proposed merger with Allegheny Energy, Inc., including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed merger that could reduce anticipated benefits or cause the parties to abandon the merger, the diversion of management's time and attention from our ongoing business during this time period, the ability to maintain relationships with customers, employees or suppliers as well as the ability to successfully integrate the businesses and realize cost savings and any other synergies and the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect and the risks and other factors discussed from time to time in its Securities and Exchange Commission filings, and other similar factors. The foregoing review of factors should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor assess the impact of any such factor on FirstEnergy's business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. FirstEnergy expressly disclaims any current intention to update any forward-looking statements contained herein as a result of new information, future events, or otherwise.
FirstEnergy Corp.
CONTACT: News Media Contact, Ellen Raines, +1-330-384-5808, or Investor
Relations Contact: Ron Seeholzer, +1-330-384-5415
Web Site: http://www.firstenergycorp.com/
