FirstEnergy Announces Competitive Bidding Process for Electric Generation Service.
FirstEnergy Corp. today announced that a competitive bidding process (CBP) will be conducted to secure electric generation from June 1, 2009, through May 31, 2011, for customers of its Ohio utilities who choose not to shop with an alternative supplier.
Utilities participating include Ohio Edison, Cleveland Electric Illuminating Company and Toledo Edison.
The bidding process is part of the companies' Electric Security Plan (ESP) currently pending before the Public Utilities Commission of Ohio (PUCO). The CBP is contingent upon acceptance of a PUCO-approved ESP.
The CBP will use a descending-clock format and will be managed by CRA International, a global consulting firm with expertise in energy markets and procurement. Bidders must be market participants in the Midwest Independent Transmission System Operator's region and will be required to certify that they are creditworthy, acting independently of other bidders, and making firm offers to provide generation service to customers.
The PUCO intends to utilize a third-party consultant to monitor the bidding process.
The descending-clock format establishes an opening price per kilowatt-hour that "ticks down" with each round of bidding. Participants bid to serve a specific amount of power, and the auction continues until it reaches the lowest price that will supply all customer needs.
The utility companies reached agreements with the Staff of the PUCO and more than 30 intervening parties to their ESP case that, if approved, would provide price certainty and other substantial customer benefits.
For more information, visit www.firstenergy-auction.com/2009/Auction/.
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|Date:||Mar 9, 2009|
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