Allegheny Power 2015 Annual Report Download - page 6
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We made significant progress during
the year in our efforts to strengthen
earnings by ensuring fair, appropriate
and timely recovery of our transmission
and distribution investments.
In October, the Federal Energy
Regulatory Commission (FERC)
approved a settlement agreement for
a forward-looking rate structure for
ATSI, which owns and operates nearly
7,800 miles of transmission lines.
This agreement provides more timely
recovery of transmission investments
that are essential to ensuring the
future reliability of our service.
FERC also approved a plan to transfer
the transmission assets owned by three
of our operating companies – Jersey
Central Power & Light (JCP&L), Met-Ed
and Penelec – to a new affiliate, Mid-
Atlantic Interstate Transmission (MAIT).
Similar to our existing ATSI and TrAILCo
transmission companies, MAIT will help
us more effectively finance and build
transmission facilities within our
Met-Ed, Penelec and JCP&L service
areas while providing stronger support
to our Energizing the Future initiative as
it expands eastward. Although the New
Jersey Board of Public Utilities (BPU)
rejected one of the plan’s provisions, it
continues to review the remainder of the
proposal. We also filed a comprehensive
settlement agreement with the
Pennsylvania Public Utility Commission
(PPUC) for approval of MAIT.
Approval of our Ohio ESP by the PUCO
would be an important step in our efforts
to protect customers from future price
volatility. The plan includes a rider that
reflects the difference between the
cost of an eight-year Purchased Power
Agreement (PPA) and our Ohio utilities’
associated wholesale market revenues.
The PPA supports the continued
operation of two of our critical baseload
power plants – the Davis-Besse Nuclear
Power Station and the W.H. Sammis
Plant – which would preserve more
than $41 million in annual tax revenues
and an estimated 3,000 direct and
indirect jobs related to those facilities.
Although the PPA has been challenged
at FERC, we will continue to advocate
for the plan’s many benefits in that
proceeding.
In February of 2016, the PPUC approved
long-term infrastructure improvement
plans for our four Pennsylvania utilities,
supporting a projected increase in capital
investment of nearly $245 million
over the next five years to strengthen,
upgrade and modernize our distribution
systems in the state. The four utilities
also filed rate riders that, with PPUC
approval, would facilitate recovery of
these investments.
ENSURING FAIR AND
AFFORDABLE RATES
PROVIDE MORE THAN
1 MILLION
MEGAWATT-HOURS PER YEAR
OF WIND GENERATION
4
Our competitive subsidiary, FirstEnergy Solutions, contracts
for renewable energy from the 35-MW Casselman Wind Power
Project located in Somerset County, Pa.