FirstEnergy Corp's (FE.N: Quote, Profile, Research) Ohio utilities on Thursday reached an agreement with the staff of the Public Utilities Commission in Ohio on a power pricing plan for 2009-2011.
The company could not say whether the agreement would boost or reduce prices for its 1.8 million Ohio customers since those costs depend in part on a proposed competitive bidding process for generation, a spokeswoman at FirstEnergy said.
In a release, the company said the agreement would provide customers with price stability, offer renewable and energy efficiency options, and offer customers access to the competitive generation market.
Specifically, the agreement would freeze current distribution rates through the end of 2011, eliminate about $215 million in regulatory transition charges and allow for a competitive bidding process to establish generation supply.
The average FirstEnergy residential customer pays about 12 to 13 cents per kilowatt hour, compared with about 10.4 cents for the average residential customer in the Midwest region in 2008, according to FirstEnergy and the U.S. Energy Information Administration.
CRA International Inc (CRAI.O: Quote, Profile, Research), a global consulting firm, will manage the competitive bidding process to secure generation from June 1, 2009 to May 31, 2011.
The company did not discuss the timing of the competitive bidding process or when the commission would consider the agreement.
To give CRA additional time for the bidding process, generation resulting from the previous bidding process in December 2008 -- which was to remain in effect through March 31, 2009 -- will now continue through May 31, 2009.
Customers may bypass the generation rates resulting from the bidding process by shopping for alternative suppliers.
http://uk.reuters.com/article/marketsNewsUS/idUKN1952691920090219
