FirstEnergy Pennsylvania Electric Company (FE PA), a subsidiary of FirstEnergy Corp., has reached a $225 million settlement in its base rate review, pending approval from the Pennsylvania Public Utility Commission (PaPUC). The settlement aims to expand bill assistance for low-income residential customers and facilitate investments in the electric grid to ensure safe and reliable service.
The agreement involves multiple stakeholders, including the Office of the Consumer Advocate, the Office of the Small Business Advocate, PaPUC’s Bureau of Investigation and Enforcement, and several industry groups and unions. John Hawkins, President of FirstEnergy’s Pennsylvania operations, stated: “This settlement will amplify our efforts to connect our lower-income customers with a wide variety of bill assistance programs while also making meaningful upgrades to our electric system to enhance reliability for customers.”
Key elements of the settlement include increased vegetation management investments, support for grid improvements through the Long-Term Infrastructure Improvement Plan III (LTIIP III), selective underground placement of distribution facilities, continued recovery of storm-related expenses, enhanced funding for Hardship Fund grants by $2 million annually over three years starting in 2025, improved enrollment processes for income-eligible assistance programs using data from the Pennsylvania Department of Human Services, and an incremental 10% increase in field workforce hiring.
If approved by PaPUC, residential customers using 1,000 kilowatt-hours per month would see average monthly bill increases as follows:
– Met-Ed: 1.9% or $3.49
– Penelec: 4.1% or $8.33
– Penn Power: 4.5% or $8.13
– West Penn Power: 6.2% or $9.70
These adjustments would align FE PA’s average monthly bills with those of other major electric companies in Pennsylvania. The new rates are proposed to take effect on January 1, 2025.
Met-Ed serves approximately 592,000 customers in eastern and southeastern Pennsylvania; Penelec serves about 597,000 customers across northern and central Pennsylvania and western New York; Penn Power caters to around 173,000 customers in western Pennsylvania; West Penn Power services approximately 746,000 customers within central and southwestern Pennsylvania.
FirstEnergy is committed to integrity, safety, reliability and operational excellence across its extensive service areas spanning Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York.
For further information on customer assistance programs or energy efficiency products visit firstenergycorp.com/billassist or energysavepa.com respectively.
