Proposal strengthens customer protections and makes energy choices easier to understand
GREENSBURG, Pa., Feb. 4, 2026 /PRNewswire/ — FirstEnergy Pennsylvania Electric Company (FE PA), a FirstEnergy Corp. (NYSE: FE) company, has filed a new Default Service Plan (DSP) with the Pennsylvania Public Utility Commission (PaPUC).
The plan explains how FE PA will buy electricity beginning June 1, 2027, for customers who don’t select an alternate supplier and adds new protections to help ensure customers don’t overpay for electricity. Electricity generation supply makes up approximately 60 percent of a typical customer’s bill in Pennsylvania, so the way this power is purchased plays a major role in keeping overall costs manageable.
FE PA, known locally as Met-Ed, Penelec, Penn Power and West Penn Power, provides electricity to more than two million customers in Pennsylvania.
John Hawkins, President, FirstEnergy Pennsylvania: “Customers are navigating a challenging economic environment, and we recognize how difficult rising household costs can be. While we don’t control electricity generation prices, we can take steps to help protect customers from paying more than necessary. This plan introduces new safeguards to reduce the risk of unexpected rates and give customers greater clarity and stability. We care deeply about the people who rely on us every day, and this is another way we’re trying to help keep their bills fair, clear and manageable.”
A Clear, Competitive Process for Buying Power
Because FE PA does not own any power plants, it must buy electricity on behalf of customers who do not choose an alternate supplier. Under the new plan, FE PA would continue using a competitive auction to purchase that electricity at the lowest cost to customers.
Here’s how it works:
- Energy suppliers compete to offer the lowest prices.
- The winning bids are used to set the “price to compare” or the utility’s standard fixed rate for electricity supply.
- This rate adjusts twice a year, and customers can use it or decide whether another supplier is offering a better deal.
Customers who do not choose an alternate supplier will pay the default service rate for the electricity they use. Large industrial customers who do not select an alternate supplier will continue to pay an hourly market-based price.
FE PA plans to continue to use CRA International, Inc., 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 would be held in January and November.
New Protections to Help Keep Bills Manageable
The proposed plan includes several changes aimed at ensuring customers aren’t unknowingly paying more for electricity than they intend, including:
- When a fixed‑term supply contract ends, residential customers would 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 would 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 would 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 we automatically pay to suppliers each billing cycle. Today, we pay suppliers 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, would also be adjusted. Peak hours would shorten to 3-7 p.m. instead of the current 2-9 p.m.
The PaPUC is expected to rule on FE PA’s Default Service Program by the end of 2026. More details about the filing are available on FirstEnergy’s website at www.firstenergycorp.com.
FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation’s largest investor-owned electric systems, serving more than six million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company’s transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at firstenergycorp.com and on X @FirstEnergyCorp.
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SOURCE FirstEnergy Corp.
