Mon Power and Potomac Edison File Supplemental Rate Information for Generation Plan

Mon Power and Potomac Edison File Supplemental Rate Information for Generation
                                     Plan

Customers Would See Less than Dollar Increase Over 2012 Bills

PR Newswire

FAIRMONT, W.Va., Jan. 29, 2013

FAIRMONT, W.Va., Jan. 29, 2013 /PRNewswire/ --FirstEnergy Corp. (NYSE: FE)
subsidiaries Mon Power and Potomac Edison today provided supplemental rate
information to the Public Service Commission (PSC) of West Virginia about the
companies' proposed plan to help ensure a continued supply of reliable,
low-cost electricity for their West Virginia customers in the years ahead.

Under the proposed plan, Mon Power will purchase 80 percent of the Harrison
Power Station from FirstEnergy subsidiary Allegheny Energy Supply, adding to
its 20 percent share and giving it sole ownership of the 1,984-megawatt (MW)
supercritical coal plant in Haywood, W. Va.

If the plan is approved by the PSC, a typical Mon Power and Potomac Edison
residential customer using 1,000 kilowatt-hours (kWh) of electricity per month
is expected to pay less than $1 more on their monthly bill compared to 2012. 

Effective January 1, 2013, the average monthly bill for a residential customer
is $94.31, which reflects a recent 5 percent rate decrease as a result of
lower coal and purchased power costs. If approved by the PSC, the plan would
result in an overall average bill of $99.94. In 2012, the average bill for a
customer using 1,000 kWh of electricity was $99.07.

The increase would be reflected in a temporary surcharge that would remain in
place until the conclusion of Mon Power's and Potomac Edison's next base rate
case. The companies will file a base rate case no later than six months from
the date of the completion of the Harrison plant transaction.

In November 2012, Mon Power and Potomac Edison filed a plan with the PSC that
was designed to protect its customers from the unpredictable spot power market
by using existing generation resources, resulting in greater rate stability
for customers. The plan would help ensure that the companies would have
adequate resources to meet anticipated annual customer usage growth of 1.4
percent per year.

The proposed transaction benefits customers and the West Virginia economy.
Power from the Harrison plant, historically a source of reliable, low-cost
electricity, is expected to be less expensive than electricity procured from
alternative, comparable sources. Located in the heart of Mon Power's service
territory, Harrison produces electricity with West Virginia coal. The
transaction would preserve the opportunity to continue to use such coal,
sustaining employment levels and helping local economies. Among the nation's
largest and cleanest coal-fired plants, Harrison is equipped with modern
emission controls.

If approved by the PSC as filed, the plan represents an approximate $1 billion
net investment by Mon Power, and also requires approval from the Federal
Energy Regulatory Commission. 

In West Virginia, Mon Power serves 385,000 customers and Potomac Edison
provides service to 132,000 customers in the state's eastern panhandle.

FirstEnergy is a diversified energy company dedicated to safety, reliability
and operational excellence. Its 10 electric distribution companies form one
of the nation's largest investor-owned electric systems, serving customers in
Maryland, Ohio, Pennsylvania, New Jersey, New York and West Virginia. Its
generation subsidiaries control more than 20,000 megawatts of capacity from a
diversified mix of scrubbed coal, non-emitting nuclear, natural gas, hydro,
pumped-storage hydro and other renewables. Follow FirstEnergy on Twitter
@FirstEnergyCorp.

Forward-Looking Statements: This news release includes forward-looking
statements based on information currently available to management. Such
statements are subject to certain risks and uncertainties. These statements
include declarations regarding management's intents, beliefs and current
expectations. These statements typically contain, but are not limited to, the
terms "anticipate," "potential," "expect," "believe," "estimate" and similar
words. Forward-looking statements involve estimates, assumptions, known and
unknown risks, uncertainties and other factors that may cause actual results,
performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Actual results may differ materially due to: the
speed and nature of increased competition in the electric utility industry,
the impact of the regulatory process on the pending matters before FERC and in
the various states in which we do business including, but not limited to,
matters related to rates, the uncertainties of various cost recovery and cost
allocation issues resulting from ATSI's realignment into PJM, economic or
weather conditions affecting future sales and margins, regulatory outcomes
associated with Hurricane Sandy, changing energy, capacity and commodity
market prices and availability, financial derivative reforms that could
increase our liquidity needs and collateral costs, the continued ability of
our regulated utilities to collect transition and other costs, operation and
maintenance costs being higher than anticipated, other legislative and
regulatory changes, and revised environmental requirements, including possible
GHG emission, water intake and coal combustion residual regulations, the
potential impacts of CAIR, and any laws, rules or regulations that ultimately
replace CAIR, and the effects of the EPA's MATS rules, the uncertainty of the
timing and amounts of the capital expenditures that may arise in connection
with any litigation, including NSR litigation or potential regulatory
initiatives or rulemakings (including that such expenditures could result in
our decision to deactivate or idle certain generating units), the
uncertainties associated with our plans to deactivate our older unscrubbed
regulated and competitive fossil units and our plans to change the operations
of certain fossil plants, including the impact on vendor commitments, and the
timing of those deactivations and operational changes as they relate to, among
other things, the RMR arrangements and the reliability of the transmission
grid, issues that could result from the NRC's review of the indications of
cracking in the Davis Besse Plant shield building, adverse regulatory or legal
decisions and outcomes with respect to our nuclear operations (including, but
not limited to the revocation or non-renewal of necessary licenses, approvals
or operating permits by the NRC or as a result of the incident at Japan's
Fukushima Daiichi Nuclear Plant), adverse legal decisions and outcomes related
to ME's and PN's ability to recover certain transmission costs through their
transmission service charge riders, the continuing availability of generating
units, changes in their operational status and any related impacts on vendor
commitments, replacement power costs being higher than anticipated or
inadequately hedged, the ability to comply with applicable state and federal
reliability standards and energy efficiency mandates, changes in customers'
demand for power, including but not limited to, changes resulting from the
implementation of state and federal energy efficiency mandates, the ability to
accomplish or realize anticipated benefits from strategic goals, our ability
to improve electric commodity margins and the impact of, among other factors,
the increased cost of fuel and fuel transportation on such margins, the
ability to experience growth in the Regulated Distribution and Competitive
Energy Services segments, changing market conditions that could affect the
measurement of liabilities and the value of assets held in our NDTs, pension
trusts and other trust funds, and cause us and our subsidiaries to make
additional contributions sooner, or in amounts that are larger than currently
anticipated, the impact of changes to material accounting policies, the
ability to access the public securities and other capital and credit markets
in accordance with our financing plans, the cost of such capital and overall
condition of the capital and credit markets affecting us and our subsidiaries,
changes in general economic conditions affecting us and our subsidiaries,
interest rates and any actions taken by credit rating agencies that could
negatively affect us and our subsidiaries' access to financing, increased
costs thereof, and increase requirements to post additional collateral to
support outstanding commodity positions, LOCs and other financial guarantees,
the state of the national and regional economy and its impact on our major
industrial and commercial customers, issues concerning the soundness of
domestic and foreign financial institutions and counterparties with which we
do business, the risks and other factors discussed from time to time in our
SEC filings, and other similar factors. The foregoing review of factors should
not be construed as exhaustive. New factors emerge from time to time, and it
is not possible for management to predict all such factors, nor assess the
impact of any such factor on FirstEnergy's business or the extent to which any
factor, or combination of factors, may cause results to differ materially from
those contained in any forward-looking statements. FirstEnergy expressly
disclaims any current intention to update, except as required by law, any
forward-looking statements contained herein as a result of new information,
future events or otherwise.

www.firstenergycorp.com

SOURCE FirstEnergy Corp.

Website: http://www.firstenergycorp.com
Contact: News Media, Todd Meyers, +1-724-838-6650, or Investors, Irene
Prezelj, +1-330-384-3859
 
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