FirstEnergy's Pennsylvania Default Service Program

  • Upcoming Events for the April 2023 DSP-VI Auction
  • Wednesday, September 20, 2023 – WebEx Information Session
  • Thursday, September 21, 2023 – Part 1 Applications can be submitted
  • Thursday, September 21, 2023 – CRA announces tranche targets and tranche sizes (% and MW)

Default Service Program Auction Process

Through this auction process, Metropolitan Edison Company (“Met-Ed”), Pennsylvania Electric Company (“Penelec”), Pennsylvania Power Company (“Penn Power”), and West Penn Power Company (“West Penn Power”) (each of which may be referred to as a “Company”, and/or in combinations as “Companies”) are seeking to procure full requirements Default Supply generation service for their Default Service Customers.

As Default Service Suppliers, winning bidders must: (a) assume all responsibilities of a PJM Load Serving Entity ("LSE"), (b) provide for energy, (c) provide for capacity, (d) provide for ancillary services, (d) provide for transmission service, including Network Integration Transmission Service (“NITS”), and (e) provide certain Alternative Energy Credits (“AECs”) pursuant to the Alternative Energy Portfolio Standards Act (“AEPS”).

Default Service Suppliers for Met-Ed, Penelec, and Penn Power must provide AECs needed to meet the non-solar requirements of the Companies’ Default Service Load as more specifically described in the SMAs. The solar AEPS requirements will be provided by the Companies.

Default Service Suppliers for West Penn Power are responsible for all solar and non-solar AECs. However, West Penn Power will allocate to Default Service Suppliers on an annual basis and an AEC per tranche basis, a portion of the 1,000 solar and 75,000 Tier I AECs received by West Penn Power under their current long term contracts.

Obligations of Default Service Suppliers for the Companies exclude the following: (a) Regional Transmission Expansion Plan charges (“RTEPs”), (b) PJM Expansion Cost Recovery charges (“ECRC”), (c) PJM charges associated with reliability must run (“RMR”) unit declarations and deactivation of plants for which charges are set after the approval of the DSPs by the Commission, (d) unaccounted for energy ("UFE"), and (e) historical out of market tie line, generation and retail customer meter adjustments. These charges will be collected by the Companies directly from shopping and non-shopping customers through competitively neutral non-bypassable charges as applicable. 

Default Service fixed priced products for residential and commercial customers will be procured in a separate auction ("Fixed Price (FP) Auction") from the hourly priced auction for industrial customers ("Hourly Priced (HP) Auction"). The fixed priced and hourly priced auctions will be conducted simultaneously.

As Independent Evaluator (also referred to as the Auction Manager), CRA International will manage each auction process. A simultaneous, multiple-round, descending-price clock auction format will be used. For additional information regarding the auction process and to receive updates please register on this Information Website. Click here to register.

The information provided on the Default Service Program auction process, including the information on this auction information Website for the process, has been prepared to assist prospective or qualified bidders in evaluating the Default Service Program auction process. It does not purport to contain all the information that may be relevant to a bidder in satisfying its due diligence efforts. Neither FirstEnergy Corp., nor the Independent Evaluator, nor any of their affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of the information, and shall not, either individually or as a corporation, be liable for any representation expressed or implied in the Default Service Program auction process or any omissions from the Default Service Program auction process, or any information provided to a bidder by any other source. A bidder should check the auction information Website frequently to ensure the bidder has the latest documentation and information. Neither FirstEnergy Corp., nor the Independent Evaluator, nor any of their affiliates or representatives shall be liable to a bidder or any of its representatives for any claims, losses, or damages relating to or arising from the bidder's use of the information provided on the Default Service Program auction process, including the information on the information Website for this process.

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