FirstEnergy Pennsylvania Outlines New Plan for Buying Electricity Starting in 2027

FirstEnergy Pennsylvania Electric Company (FE PA), a FirstEnergy company, has filed a new Default Service Plan (DSP) with the Pennsylvania Public Utility Commission (PaPUC).

The plan explains the role of FE PA to buy electricity beginning June 1, 2027, for customers who do not select an alternate supplier and adds new protections to help ensure customers do not overpay for electricity. Electricity generation supply makes up approximately 60% of a typical customer's bill in Pennsylvania, thus power purchasing methods are crucial in keeping overall costs manageable.

"This plan introduces new safeguards to reduce the risk of unexpected rates and give customers greater clarity and stability,” said John Hawkins, President, FirstEnergy Pennsylvania.

FE PA is expected to buy electricity on behalf of customers who do not choose an alternate supplier as it does not own any power plants. Under the new plan, FE PA will continue using a competitive auction to purchase the electricity at the lowest cost to customers.

· Energy suppliers will compete to offer the lowest prices.

· The winning bids will be used to set the price to compare or the utility's standard fixed rate for electricity supply.

· The rate adjusts twice a year, and customers will be allowed to use it or decide whether another supplier is offering a better deal.

Customers not selecting an alternate supplier will pay the default service rate for the electricity they use. Large industrial customers not opting an alternate supplier will continue to pay an hourly market-based price.

FE PA will continue to use CRA International, a consulting firm with experience in energy markets, to run the auction process. In 2027, FE PA proposes to hold auctions in January, April and November. Beginning in 2028 through 2031, auctions are expected to be held in January and November.

The proposed plan includes several changes aimed at ensuring customers do not unknowingly pay more for electricity than they intend, including:

· When a fixed‑term supply contract ends, residential customers will be automatically returned to FE PA's standard default service unless they choose to continue with their supplier.

· Customers on month‑to‑month variable rate plans will also return to default service unless they confirm every quarter that they want to stay on their supplier's variable plan.

· New guidelines for suppliers will encourage them to offer prices lower than the utility's price to compare, giving customers more opportunities to save. These guidelines will also limit how much one automatically pays to suppliers in each billing cycle. Currently, suppliers are paid before customers pay their bills, and unpaid charges get passed on to everyone. These limits help reduce how much can be passed on.

FE PA's Time-of-Use program, designed to help customers save by shifting energy use to off-peak hours, will also be adjusted. Peak hours will be reduced to 3-7 p.m. as compared to the current 2-9 p.m. The PaPUC is expected to rule on FE PA's Default Service Program by the end of 2026.