FirstEnergy Corp., along with all parties to their merger proceeding in West Virginia, today filed a comprehensive settlement with the West Virginia Public Service Commission (WVPSC) that resolves all issues raised in the case.  The filing includes a commitment for a regional headquarters for Allegheny Power’s West Virginia utility operations, a $7.5 million rate reduction over two years for Allegheny Power’s West Virginia customers, enhanced customer service and reliability, and expanded support for Dollar Energy Fund.

“We are pleased to have reached agreement with the parties to our merger case in West Virginia and look forward to providing additional benefits to customers and communities in West Virginia,” said Anthony J. Alexander, President and Chief Executive Officer of FirstEnergy.

“We appreciate the support of all the parties to the settlement,” said Paul J. Evanson, Chairman, President and Chief Executive Officer of Allegheny Energy. “This agreement strengthens our commitments to the state and will ensure a strong partnership with West Virginia for years to come.”

In addition to the commitments made in the initial merger application, the settlement includes the following:

• A regional headquarters operation for Allegheny Power’s West Virginia utility operations within the service territory of Monongahela Power.
• $7.5 million in rate reductions over a two-year period for Allegheny Power’s West Virginia customers.
• Customer service as well as reliability commitments aimed at reducing the duration of outages.
• A commitment to maintain customer call center operations in Fairmont for at least five years.
• Additional funding totaling $500,000 over a four-year period for Dollar Energy Fund in West Virginia.
• Specific demand-side management and energy efficiency savings levels in Allegheny Power’s West Virginia service territories.

Parties signing the petition include Staff of the WVPSC, the West Virginia Consumer Advocate Division, West Virginia Energy Users Group, the Utility Workers of America, AFL-CIO and UWUA System Local 102-O, West Virginia Citizen Action Group, Local Union 2357 and Local Union 50 of the International Brotherhood of Electrical Workers, the West Virginia State Building and Construction Trades Council, and the Marion County Commission.

The petition, which resolves all issues raised by these parties in the FirstEnergy-Allegheny Energy merger case, is subject to approval of the WVPSC.

The companies filed their merger application with the WVPSC on May 18, 2010.  In it they committed to no net job losses at the utility operating companies for at least two years as a result of involuntary attrition related to the integration process; to expand FirstEnergy’s Power Systems Institute program in West Virginia; to maintain Allegheny Power’s customer call center and transmission operations center in Fairmont; and continued economic development and community support.

FirstEnergy Corp. (NYSE: FE) and Allegheny Energy, Inc. (NYSE: AYE), along with all parties to their merger proceeding in West Virginia, today filed a comprehensive settlement with the West Virginia Public Service Commission (WVPSC) that resolves all issues raised in the case.  The filing includes a commitment for a regional headquarters for Allegheny Power’s West Virginia utility operations, a $7.5 million rate reduction over two years for Allegheny Power’s West Virginia customers, enhanced customer service and reliability, and expanded support for Dollar Energy Fund.

“We are pleased to have reached agreement with the parties to our merger case in West Virginia and look forward to providing additional benefits to customers and communities in West Virginia,” said Anthony J. Alexander, President and Chief Executive Officer of FirstEnergy.

“We appreciate the support of all the parties to the settlement,” said Paul J. Evanson, Chairman, President and Chief Executive Officer of Allegheny Energy. “This agreement strengthens our commitments to the state and will ensure a strong partnership with West Virginia for years to come.”

In addition to the commitments made in the initial merger application, the settlement includes the following:

• A regional headquarters operation for Allegheny Power’s West Virginia utility operations within the service territory of Monongahela Power.
• $7.5 million in rate reductions over a two-year period for Allegheny Power’s West Virginia customers.
• Customer service as well as reliability commitments aimed at reducing the duration of outages.
• A commitment to maintain customer call center operations in Fairmont for at least five years.
• Additional funding totaling $500,000 over a four-year period for Dollar Energy Fund in West Virginia.
• Specific demand-side management and energy efficiency savings levels in Allegheny Power’s West Virginia service territories.

Parties signing the petition include Staff of the WVPSC, the West Virginia Consumer Advocate Division, West Virginia Energy Users Group, the Utility Workers of America, AFL-CIO and UWUA System Local 102-O, West Virginia Citizen Action Group, Local Union 2357 and Local Union 50 of the International Brotherhood of Electrical Workers, the West Virginia State Building and Construction Trades Council, and the Marion County Commission.

The petition, which resolves all issues raised by these parties in the FirstEnergy-Allegheny Energy merger case, is subject to approval of the WVPSC.

The companies filed their merger application with the WVPSC on May 18, 2010.  In it they committed to no net job losses at the utility operating companies for at least two years as a result of involuntary attrition related to the integration process; to expand FirstEnergy’s Power Systems Institute program in West Virginia; to maintain Allegheny Power’s customer call center and transmission operations center in Fairmont; and continued economic development and community support.

Popularity: 1% [?]

Electricity customers in Pennsylvania deserve fair rates and full choice in selecting an electric power provider, according to the newly-established Energy Consumers First coalition, which today outlined a detailed Energy Consumers Bill of Rights that it seeks to have adopted by state regulators.

The new coalition seeks to give Pennsylvania’s energy consumers a stronger voice in utility issues, including how the upcoming expiration of rate caps is handled in Western Pennsylvania for customers of Allegheny Power, Met-Ed and Penelec.

The new Energy Consumers First coalition has already been endorsed by former state Treasurer and Auditor General Barbara Hafer, who has been named Honorary Chairwoman of the effort. The coalition is a citizen-driven initiative whose goals are to ensure that energy consumers’ rights are defended and that they are provided with accurate, timely and unbiased information about choosing an electric supplier once rate caps are terminated on January 1, 2011. The coalition believes that consumers should experience the full benefits of electricity competition as was envisioned when the Act was passed.

“The Energy Consumers First coalition is primarily a consumer protection effort that focuses upon public education and awareness,” said Barbara Hafer during a formal launch press conference held in downtown Pittsburgh today. “Our goals are to ensure that energy consumers are paying a fair price for the power we use, and that we have full electric choice once the rate caps do expire.”

Hafer said the genesis of the new coalition was the pending merger of energy giant First Energy with Allegheny Power, and First Energy’s efforts to have it designated as the “dominant supplier” for electric customers in the Allegheny Power and other Western Pennsylvania service areas. The merger request is currently being considered by the state Public Utility Commission, which is expected to conclusively rule on the matter early next year.

One of the alternatives to the First Energy “dominant supplier” plan is to have all of the electric customers in the affected area be entered into a pool of customers that would be bid upon in a consumer-friendly public auction, with auction proceeds then returned to the individual residents and businesses in amounts ranging from $150 to $500, a significant benefit in today’s economy. This proposal will foster true competition among electricity suppliers for the affected customer accounts. The rebate idea is also being considered by the PUC as part of the merger request in spite of First Energy’s adamant opposition to it.

Hafer noted that another key aspect of the coalition’s mission is ensuring that the rates consumers pay are true and accurate, and reflects what the actual costs are to the utility. Many electric utilities are locking in their customers’ energy supply at higher than market rates for extended periods of time, even though the costs of buying that power have decreased over time. Without competitive options, customers could be locked-in to higher rates, rather than being allowed to receive the rebate and potentially lower rates.

“This is an unacceptable situation and our regulators and legislators in Harrisburg should be taking steps to prevent this unfair and inequitable practice,” noted Hafer. “Pennsylvania residents continue to struggle in this economic downturn, and certainly every extra dollar that they can get or avoid having to pay will be well-used and appreciated.”

The Energy Consumers First coalition is urging consumers from across the state to sign its online petition urging the adoption of the Energy Consumers Bill of Rights, as well as contact the PA Office of the Consumer Advocate to express support for it. Letters, emails, and calls to local utilities and legislators are also being solicited. More information on the Energy Consumers First coalition can be obtained from the organization’s website at www.energyconsumersfirst.com, or by calling 1-866-885-3438.

Popularity: 2% [?]