FirstEnergy units agree on coal-fired power plant share, rate reduction

FirstEnergy subsidiaries Mon Power Potomac Edison PSC West Virginia Harrison supercritial coal-fired power plant Pleasants Power Station Allegheny Energy Supply

Mon Power and Potomac Edison, subsidiaries of FirstEnergy Corp. (NYSE: FE), filed a comprehensive settlement agreement with the Public Service Commission of West Virginia involving the 1,984 MW supercritical Harrison Power Station.

If approved, Mon Power would purchase an 80 percent stake in the Harrison Power Station from Allegheny Energy Supply, adding to the 20 percent it already owns in the supercritical coal-fired power plant. Mon Power would them transfer its 8 percent interest in the Pleasants Power Station to Allegheny Energy Supply.

The agreement would also reduce an average residential customer’s electric bill by about $1.50 a month. The agreement would also include the companies’ commitments to bring 50 additional jobs to the state, provide financial contributions for economic development, weatherization programs and other programs.

The parties involved have requested that the PSC issue a final approval no later than August 30. If approved, the settlement would likely close in the third or fourth quarter of 2013. The Federal Energy Regulatory Commission has already approved the deal.

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