Through a competitive bidding process conducted by Brattle economists, 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 2022 and 2023 energy years. In total, 38,500 SPAECs were acquired for each energy year.
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 the most recent procurement is $47.16 per SPAEC, with deliveries scheduled to begin in June 2021 and continue through May 2023.
The Pennsylvania Public Utility Commission (PaPUC) approved the procurement results on March 10, 2021. The costs of the SPAECs purchased in the current RFP will be reflected in customer bills beginning June 2021. The procurement was part of the Companies’ Default Service Plan Compliance Filing, which the PaPUC approved to meet the state’s Alternative Energy Portfolio Standards.
Brattle’s team included Principals Dr. James Reitzes and Dr. Nicholas Powers. Brattle has extensive experience managing procurement, open solicitation, and auction processes for utilities and other energy market participants, including the purchases and sales of electric power assets such as energy, renewable energy credits, transmission rights, and output and ownership shares in electric power plants.