Through a competitive bidding process conducted by economists at The Brattle Group, FirstEnergy Corp.’s (NYSE: FE) subsidiaries Metropolitan Edison Company, Pennsylvania Electric Company, and Pennsylvania Power Company have successfully solicited contracts for Solar Photovoltaic Alternative Energy Credits (SPAECs) covering the 2020 and 2021 energy years. One SPAEC represents the solar renewable energy attributes of one megawatt-hour of generation from a qualified solar generating facility.
The procurement was part of the Companies’ Default Service Plan Compliance Filing approved by the Pennsylvania Public Utility Commission to competitively procure SPAECs to meet the state’s Alternative Energy Portfolio Standards.
The average cost to the Companies in the most recent procurement is $77.06 per SPAEC, with deliveries scheduled to begin in June 2019 and continue through May 2021. The results of the procurement were approved by the Pennsylvania Public Utility Commission on March 6, 2019. The costs of the SPAECs purchased in the current RFP will be reflected in customer bills beginning June 2019.
The Brattle Group has extensive experience managing procurement, open solicitation, and auction processes for utilities and other energy market participants, including purchases and sales of electric power assets such as energy, renewable energy credits, transmission rights, and output and ownership shares in electric power plants. For more information, please contact James Reitzes or call 1.202.955.5050.