Allegheny Power 2011 Annual Report Download - page 5
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3
Our regulated utilities are seeing continued
improvement in electricity deliveries to industrial
customers, largely due to increased activity in
the steel and automotive sectors and new proj-
ects related to the shale gas industry. However,
growth is spotty in other segments of our regional
economy, and overall distribution sales have not
yet recovered to pre-recession levels. As a result,
generation supplies within the region continue to
exceed demand, and wholesale market prices for
electricity have reached their lowest level in
eight years.
GROWTH IN COMPETITIVE BUSINESS
On the competitive front, FirstEnergy Solutions
(FES) continues to grow by expanding into new
markets. We achieved a 61 percent increase in the
amount of electricity sold to governmental aggre-
gation groups, large- and medium-sized commercial
and industrial customers, and through mass-market
initiatives – including new campaigns designed to
help us sign up retail customers for electric
generation in Ohio, Pennsylvania and Illinois.
During the year, we signed contracts with
40 communities offering the benefits of govern-
mental aggregation to their citizens. We also initi-
ated a residential pilot program that helped us add
nearly 350,000 new customers in southern Ohio,
western Pennsylvania and Illinois. As a result of
these and other efforts, FES serves nearly
2 million customers in Ohio, Pennsylvania, Illinois,
Michigan, New Jersey and Maryland.
FES is now one of the nation’s largest competitive
electric suppliers. In addition, FES continues to
participate in auctions in which suppliers com-
pete to provide savings on electric generation to
customers who choose not to shop. In each sales
channel, we’re pursuing a highly focused retail
strategy that builds on the strength and diversity of
our generating assets.
The success of FES is tied to the performance
of our generating units. Our nuclear fleet deliv-
ered a solid performance, with our Beaver Valley
Nuclear Power Station earning the American
Nuclear Society’s Utility Achievement Award for
Best Performance. Our nuclear operations also
benefited from the installation of a new reactor
vessel head at the Davis-Besse Nuclear Power
Station – a proactive measure that reinforces our
commitment to the safe and efficient operation
of that facility over the long term. In addition, we
enhanced the performance of our supercritical
coal facilities, improving equipment reliability and
capacity factors across the fleet.
MEETING ENVIRONMENTAL
CHALLENGES
We also have a clean, environmentally sound
generating fleet – a key advantage that is expected