The Brattle Group conducted a competitive bidding process for FirstEnergy Corp.'s (NYSE: FE) subsidiaries Metropolitan Edison Co., Pennsylvania Electric Co., and Pennsylvania Power Co. As a result, the companies successfully landed contracts for 13,500 Solar Photovoltaic Alternative Energy Credits (SPAECs) annually over a ten-year period.
The companies' revised default service plan compliance filing and results were approved by the Pennsylvania Public Utility Commission for procurement of SPAECs in an effort to meet the state's alternative energy portfolio standards.
Deliveries are scheduled to begin June 2014 and last through May 2024, costing the companies about $65.31 per SPAEC. One SPAEC represents the solar renewable energy attributes of one megawatt-hour of generation from a solar generating facility.
Costs incurred to meet solar requirements have been reflected in customer bills since January 2011. The costs of the SPAECs purchased in the current RFP will be reflected beginning in June 2014.