Warrior Run power generation contract to end seven years early
WILLIAMSPORT, Md., June 21, 2023 /PRNewswire/ -- The Maryland Public Service Commission (PSC) has approved a proposal from Potomac Edison, a subsidiary of FirstEnergy (NYSE: FE), to buy out its contract with AES's Warrior Run generating station approximately seven years early, potentially saving customers nearly $80 million.
The contract with AES Warrior Run for the coal-fired power station in Cumberland, Maryland, was established in 2000 as a requirement of the Public Utility Regulatory Policies Act (PURPA) passed by Congress in 1978. The contract was scheduled to end in 2030. Potomac Edison's Maryland customers currently pay a Cogeneration PURPA Project Surcharge on their electric bill based on the price at which Potomac Edison can resell the power it purchased from Warrior Run. The surcharge amount has varied greatly year-to-year due to fluctuations in the competitive market.
"Potomac Edison is committed to helping customers save money and stabilize their electric bills, and this agreement is a step toward keeping bills affordable and more predictable for our customers," said Linda Moss, president of FirstEnergy's Maryland operations.
Customers will continue to see the PURPA surcharge on their bills through the term of the buyout in accordance with the Maryland PSC's order. However, through the buyout period, Potomac Edison customers are forecast to save a substantial amount of money. Also, this agreement will help to stabilize their bills by eliminating charges that are based on a volatile market. An early end to the Warrior Run contract has an estimated 90% probability of saving customers money over the remaining term of the agreement.
Potomac Edison serves about 285,000 customers in all or parts of Allegany, Carroll, Frederick, Garrett, Howard, Montgomery, and Washington counties. Follow Potomac Edison at www.potomacedison.com, on Twitter @PotomacEdison, and on Facebook at www.facebook.com/PotomacEdison.
FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its 10 electric distribution companies form one of the nation's largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at www.firstenergycorp.com and on Twitter @FirstEnergyCorp.
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SOURCE FirstEnergy Corp.