PUCO accepts FirstEnergy auction results

COLUMBUS, OHIO (May 14, 2009) – The Public Utilities Commission of Ohio (PUCO) today accepted the final wholesale auction price of $61.50 per megawatt hour for FirstEnergy’s operating companies standard service offer supply. The results of this wholesale auction determined FirstEnergy’s generation and transmission service rates from June 1, 2009 through May 31, 2011.

“We are more than pleased that ratepayers in northern Ohio, many of whom have been victimized by the economy, will benefit from the outcome of this energy auction,” PUCO Chairman Alan R. Schriber stated. “We’re proud of the way the auction was conducted and commend the participants, the auction manager and our consultant for making this such a success.”

The percentage change in the retail rates for individual rate classes will vary. On an annual total bill basis, retail rates for a standard residential customer using 1,000 kilowatt hours (kWh) per month will decrease by 16 percent for Ohio Edison, 12.6 percent for Toledo Edison and 7.4 percent for Cleveland Electric Illuminating. The rates around these annual total bill percentages will vary between summer and winter.

The auction began on May 13, 2009 and concluded on May 14, 2009. There were 12 bidders registered for the auction and nine submitted winning bids. The auction consisted of 25 rounds and procured all of the necessary tranches to supply FirstEnergy’s load. CRA International served as the independent auction manager. Boston Pacific Company, Inc., a consultant retained by the PUCO, monitored the auction process.

FirstEnergy must file tariffs for Commission review and approval containing retail rates consistent with the results of the auction within seven days.
The names of the winning bidders who won tranches in the auction, the number of tranches won by each bidder and the first round ratio of tranches offered compared to tranches needed will be subject to public release in 21 days. This will allow the winning bidders to procure any additional necessary capacity to serve the load.

A copy of today’s Commission finding and order and redacted version of the report issued by the auction manager will be available at www.PUCO.ohio.gov. Click on the link to DIS and enter the case number 08-935-EL-SSO.

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