The Brattle Group Assists FirstEnergy Pennsylvania Utilities in Long-Term Purchase of Solar Power and Alternative Energy Credits
Through a competitive bidding process conducted by Brattle economists, four FirstEnergy Corp. (NYSE: FE) subsidiaries – Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, and West Penn Power Company – have successfully solicited bids and entered into long-term power purchase agreements (PPAs) to procure solar power and alternative energy credits from projects in development.
The FirstEnergy Pennsylvania utilities have procured, under 10-year contracts, the energy and Solar Photovoltaic Alternative Energy Credits (SPAECs) produced by 20 megawatts (MWs) of solar capacity, with the SPAECs qualifying as Tier 1 solar credits under Pennsylvania’s Alternative Energy Portfolio Standards (AEPS) Act. One SPAEC represents the solar renewable energy attributes of one megawatt-hour of generation from a qualified solar generating facility. The companies’ average cost in this most recent procurement is $74.50 per megawatt-hour for energy and the associated SPAECs.
The Pennsylvania Public Utility Commission (PaPUC) approved the procurement results on February 8, 2023. The procurement was part of the companies’ Default Service Plan Compliance Filing, which the PaPUC approved to meet the state’s AEPS.
The Brattle team, led by Principals Dr. James Reitzes and Dr. Nicholas Powers, was responsible for designing and executing the procurement, including evaluating the bid proposal packages. Brattle has extensive experience designing and 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.