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FirstEnergy Pennsylvania Outlines New Plan for Buying Electricity Starting in 2027
Prnewswire· 2026-02-04 20:54
Core Insights - FirstEnergy Pennsylvania Electric Company (FE PA) has filed a new Default Service Plan (DSP) with the Pennsylvania Public Utility Commission (PaPUC) aimed at enhancing customer protections and simplifying energy choices [1][2] Group 1: Default Service Plan Overview - The DSP outlines how FE PA will procure electricity starting June 1, 2027, for customers who do not select an alternative supplier, emphasizing the importance of electricity generation supply, which constitutes approximately 60% of a typical customer's bill in Pennsylvania [2] - FE PA, operating under various local names, serves over two million customers in Pennsylvania [3] Group 2: Customer Protections and Pricing Mechanism - The plan introduces new safeguards to prevent customers from overpaying for electricity, addressing the challenges posed by rising household costs [4] - FE PA will continue to utilize a competitive auction process to purchase electricity at the lowest cost for customers, with large industrial customers paying an hourly market-based price if they do not choose an alternate supplier [5] Group 3: Auction Process and Timing - FE PA plans to engage CRA International, Inc. to manage the auction process, with auctions scheduled for January, April, and November in 2027, and in January and November from 2028 to 2031 [6] Group 4: Time-of-Use Program Adjustments - The proposed plan includes adjustments to the Time-of-Use program, shortening peak hours from 2-9 p.m. to 3-7 p.m. to help customers save by shifting energy use to off-peak hours [7] Group 5: Supplier Guidelines and Customer Options - New guidelines for suppliers will encourage competitive pricing below the utility's standard rate, providing customers with more opportunities to save, while also limiting the amount automatically paid to suppliers each billing cycle [10] - Residential customers will revert to FE PA's standard default service upon the expiration of fixed-term supply contracts unless they opt to continue with their current supplier [10]