AKRON, Ohio, Oct. 20 /PRNewswire-FirstCall/ -- FirstEnergy Corp.'s (NYSE: FE) Ohio electric utility companies - Ohio Edison, The Cleveland Electric Illuminating Company and Toledo Edison - today filed an application for a Market Rate Offer (MRO) to provide electric generation service to retail customers who choose not to shop with alternative suppliers. The MRO, which was filed with the Public Utilities Commission of Ohio (PUCO), would establish a Competitive Bidding Process (CBP) to secure electric generation supply and pricing beginning June 1, 2011. The proposed process is similar to the successful CBP conducted earlier this year to secure generation supply for FirstEnergy's Ohio utility customers through May 31, 2011. "This CBP has several key enhancements - including multiple bidding sessions and staggered contract lengths - to further reduce potential price volatility, reduce supplier risk and encourage bidder participation," said President and Chief Executive Officer Anthony Alexander. "The process is designed to deliver the most competitively priced power for our Ohio customers through a vibrant auction process." The CBP would be managed by CRA International, a global consulting firm with expertise in energy markets and procurement, to ensure that it is open, fair and transparent. Qualifying suppliers would bid to supply a percentage of the companies' retail electric generation requirement in multiple rounds of bidding - combining all classes of customers in a "slice-of-system" approach. The process would use a descending clock auction format, with the price per kilowatt-hour "ticking down" each round until the number of bids equals the total supply requirement. The final round of bidding would represent the lowest price at which customers' generation supply needs would be met. The resulting price would be used to establish the standard service offer for customers who choose not to shop with an alternative generation supplier. The proposed CBP calls for two initial bid solicitations next year - one in June and one in October - with varying supply periods of 12, 24 and 36 months. The staggered end dates establish a framework for the companies to conduct subsequent CBPs each year for one-third of customers' generation supply needs, with customer prices ultimately reflecting a blended average of results over a three-year period. In addition to the standard service offer, the MRO filing includes three voluntary time-differentiated pricing options for customers - real-time pricing, time-of-day pricing and critical peak pricing. These options provide participating customers the ability to better manage their energy usage and costs. The filing also outlines a Request for Proposal process to secure commitments for load reductions from large commercial and industrial customers, which would help meet the companies' load-reduction requirements. The CBP is being conducted under Ohio's energy law, which outlines a process for establishing electric generation supply and pricing for retail electricity customers who do not select alternative generation suppliers, either individually or through governmental aggregation programs. The companies' previous CBP resulted in a total of 12 bidders qualified to participate in the auction with nine successful bidders each securing a portion of the Ohio utility companies' total generation needs. The strong bidder participation reflects the competitive nature of the process. 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 Public Utilities Commission of Ohio's regulatory process on the Ohio Companies associated with the distribution rate case, 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, 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, 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. DATASOURCE: FirstEnergy Corp. CONTACT: News Media Contact: Ellen Raines, +1-330-384-5808, or Investor Contact: Ron Seeholzer, +1-330-384-5415, both of FirstEnergy Corp. Web Site: http://www.firstenergycorp.com/

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