FE Joins PJM, Sells Michigan Plant - Analyst Blog

FirstEnergy Corporation (FE), through its subsidiary American Transmission Systems, Inc., entered into an agreement to join PJM Interconnection LLC (PJM). The Federal Energy Regulatory Commission (FERC) approved the integration last week.
 
Currently, the company’s transmission assets located within FirstEnergy's Ohio and Pennsylvania Power (Penn Power) utilities are operated by the Midwest Independent Transmission System Operator. The integration into PJM is expected to be complete on June 1, 2011, to coincide with delivery of power under the next competitive generation procurement process for the Ohio and Penn Power Utilities. The consolidation is expected to facilitate customers with the benefits of a fully developed retail choice market, and the company with the operating efficiencies of a single Regional Transmission Organization (RTO) – with one set of rules, procedures and protocols. 

Earlier last week, FirstEnergy reached an agreement to sell a Michigan power plant to Wolverine Power Supply Cooperative Inc. and after concluding it was no longer a strategic fit. The 340-megawatt (MW) Sumpter Plant in Sumpter, Michigan, was built in 2002 by FirstEnergy Generation Corp. to serve customers in northwest Ohio and participate in the Michigan marketplace. It comprises of four 85-MW natural gas combustion turbines. The company expects the sale to close in the first quarter of 2010. 

FirstEnergy is a diversified energy company headquartered in Akron, Ohio. Its subsidiaries and affiliates are involved in the generation, transmission and distribution of electricity, as well as energy management and other energy-related services. Strong performance by its generation fleet, new regulatory assets, share repurchase programs, asset divestitures and an increased dividend payout make FirstEnergy a compelling conservative growth story, going forward.
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