Through this auction process, FirstEnergy Pennsylvania Electric Company (“FE PA”) is seeking to procure full requirements Default Supply generation service for the Default Service Customers of the Rate Districts: Metropolitan Edison (“Met-Ed”), Pennsylvania Electric (“Penelec”), Pennsylvania Power (“Penn Power”), and West Penn Power (“West Penn Power”) (each of which may be referred to as a “Rate District”, and/or in combinations as “Rate Districts”).
As Default Service Suppliers, winning bidders must: (a) assume all responsibilities of a PJM Load Serving Entity ("LSE"), (b) provide for energy, (c) provide for capacity, (d) provide for ancillary services, (d) provide for transmission service, including Network Integration Transmission Service (“NITS”), and (e) provide certain Alternative Energy Credits (“AECs”) pursuant to the Alternative Energy Portfolio Standards Act (“AEPS”).
Default Service Suppliers for Met-Ed, Penelec, and Penn Power Rate Districts must provide AECs needed to meet the non-solar requirements of the Rate Districts’ Default Service Load as more specifically described in the SMAs. The solar AEPS requirements will be provided by FE PA.
Default Service Suppliers for West Penn Power are responsible for all solar and non-solar AECs.
Obligations of Default Service Suppliers for FE PA exclude the following: (a) Regional Transmission Expansion Plan charges (“RTEPs”), (b) PJM Expansion Cost Recovery charges (“ECRC”), (c) PJM charges associated with reliability must run (“RMR”) unit declarations and deactivation of plants for which charges are set after the approval of the DSPs by the Commission, (d) unaccounted for energy ("UFE"), and (e) historical out of market tie line, generation and retail customer meter adjustments. These charges will be collected by FE PA directly from shopping and non-shopping customers through competitively neutral non-bypassable charges as applicable.
Default Service fixed priced products for residential and commercial customers will be procured in a separate auction ("Fixed Price (FP) Auction") from the hourly priced auction for industrial customers ("Hourly Priced (HP) Auction"). The fixed priced and hourly priced auctions will be conducted simultaneously.
As Independent Evaluator (also referred to as the Auction Manager), CRA International will manage each auction process. A simultaneous, multiple-round, descending-price clock auction format will be used. For additional information regarding the auction process and to receive updates please register on this Information Website. Click here to register.