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Potomac Edison & Mon Power "Status" - FUBAR

5/25/2014

9 Comments

 
Of course FirstEnergy had to have the last word in the WV Public Service Commission General Investigation into its billing, meter reading and customer service practices.

FirstEnergy's latest attempt to pretend there's no problem was entitled "Status Report."  ???  Is there some legal requirement for a "status report" in a general investigation that's waiting for an order that nobody but FirstEnergy knows about?  Or maybe it's just cover for the PSC to also pretend that nothing's wrong so they can dismiss the investigation, after wasting everyone's time for the past year?

FirstEnergy's "Status Report" is a rendition of all the super-de-dooper changes the company has made to the crappy way they treat you, the customer, ever since the PSC started giving them the hairy eyeball.  Let's see if this makes people who receive gigantic bills they can't pay feel any better:
Added messaging informing customer as to payment options when an actual bill is received (after multiple estimates) if the bill is > 25% than the customer's prior year bill informing customers of some payment options at receipt of the bill reducing dissatisfaction with catch-up bills.
There, all better.  FirstEnergy will give you some "options" to prevent that kick in the gut feeling you get when opening an electric bill hundreds or thousands of dollars more than you expected.  You still have to pay the bill, but reading some canned message in tiny print should make you feel all warm and fuzzy and avert the panic attack.  Right.

This list of FirstEnergy's "accomplishments" is crap.  Most of it is old stuff they already "accomplished" that either didn't do anything, or screwed things up even further.  Customers STILL received huge bills they couldn't pay this spring, just like last year. 

FirstEnergy's plans for future improvements include more tiny print "messaging" on your bill.  Because, don't you know, the whole problem all along has been that you're just stupid, and FirstEnergy has done nothing wrong. 

FirstEnergy also promises to continue to screw around with its estimation algorithm.  *NOOOOOOOOOOOO!*

I have a couple of "improvements and evaluations" for FirstEnergy that might actually make a difference.  They're really quite simple.

1.    Apologize.
2.    Accept responsibility for your actions.
3.    Make amends to your customers.

But I don't see that ever happening.... because the WV PSC probably wants to pretend there is no problem just as badly as FirstEnergy does.  Once again, the customer gets tossed under the regulatory bus.

Did any of these chuckleheads pause to consider the effect of an unsatisfactory conclusion to the general investigation on the FirstEnergy base rate case?  The hoi polloi haven't had an opportunity to get over the billing & meter reading issues before they got hit with a gigantic rate increase.  What do they see?  They see FirstEnergy being rewarded for complete and utter failure.

FirstEnergy better get comfy curled up in the fetal position.  It's going to be a rough year.

9 Comments

Lifestyles of the Rich and Arrogant

5/21/2014

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FirstEnergy held its Annual Shareholders' Meeting the other day.  It lasted 12 minutes.  Hardly anyone came.

Our hero Tony "the Trickster" Alexander's NEO compensation is now even further bound to the company's stock price.  Heads will roll and wallets will empty.  When it's all about Tony getting his performance awards, it's no longer about providing an essential service in a safe, reliable and cost effective manner.  It's about cutting expense and increasing dividend "performance."
The report also outlines in some detail how the company's board of directors during the last year has taken some significant steps to tie executive incentive pay to company performance.

Under the new rules, Alexander's base salary -- $1.34 million since 2011 -- accounted for just 12 percent of what he potentially could have earned in 2013, the report notes. The rest of his compensation is now entirely performance based.

"We believe that the quality, skills, and dedication of our executive officers, including our NEOs (named executive officers), are critical elements in our ongoing ability to deliver positive operating results and enhance shareholder value," the compensation committee of the company's board of directors explained in the report.
Well, gosh, this could really impact happy hour at the Casa de Alexander, don't you think?  It would be rather unfortunate if this actually happened...

Tony:  "I'm home!  Where's that cocktail waitress with my martini?"

Mrs. Becky Alexander:  "I had to fire her.  She was simply too efficient and we need to cut down on expenses now that your pay is tied to your performance.  I know how hard it is for you to perform."

Tony:  "Have you been making unauthorized donations to charities again?  I told you, all our giving must provide a return!"

Mrs. Becky Alexander:  "Tony, who are those people on our front lawn?  I fear they may trample my petunias and cause extra work for our strapping, young gardener.  Can you make them go away?"
Tony:  "Call the police!"

Mrs. Becky Alexander:  "The peasants are revolting!"

Tony:  "You said it!  They stink on ice!"

Mrs. Becky Alexander:  "I think they might be your employees, dear.  Why don't you run out and say hello?  I think I have a bag of stale chocolate Kisses left over from Halloween that you could toss to make them move along."

Tony:  "Don't feed them!  It only encourages them to ask for ridiculous things like fair wages and benefits.  If you feed them once, they'll never go away.  What's for dinner?"

Mrs. Becky Alexander:  "Reservations, of course!  Can you have your public safety personnel clear us a path to the country club?"
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Another Quarter, Another FirstEnergy Management Disaster

5/8/2014

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Another excuse-filled, poor performance, quarterly earnings call from FirstEnergy on Tuesday.  How much longer can this company continue to flounder and still stay in business?

The basic story goes like this:  Despite a big profit from the cold weather in January & February, company mismanagement frittered it away.  The Plain Dealer provides a good summary of FirstEnergy's disappointing performance.
FirstEnergy lost two large power plants during January's arctic-like weather -- the 2,490-megawatt coal-burning Bruce Mansfield plant in Shippingport, Pennsylvania, and right next door, one of its 900-megawatt nuclear reactors at its Beaver Valley power plant.

And then the company found it could not buy natural gas for its 545-megawatt gas turbine plant in Lorain. The shutdowns and inability to buy gas forced the company to buy power on the regional grid -- just as wholesale market prices soared.

Power purchases during the 10 days of sub-zero January weather knocked down earnings by 13 cents per share, Leila Vespoli, chief legal officer and executive vice president of markets, told financial analysts during a public teleconference Tuesday and now available on the company's website.

She said power purchases over the entire quarter reduced earnings by a total of 23 cents per share.

Then extra charges levied by PJM Interconnection, the manager of the grid in Ohio and 12 other states, nicked another 10 cents per share out of gross profits, she said, though the company is planning on recovering about half of that from commercial and industrial customers.
This is all despite FirstEnergy's desperate attempts to restructure debt and raise cash over the past year through the sale of hydro assets, and the transfer of its unregulated Harrison power station to its WV regulated subsidiaries for a billion dollar payday.  FirstEnergy still has little cash, and a mountain of looming debt.

FirstEnergy's competitive retail business continues to drag it down, despite an effort to reposition all its eggs in the regulated basket.  It wasn't too long ago that FirstEnergy was all giddy over beating AEP on all the consumer "shopping" going on in the state of Ohio.  Tony the Trickster bragged through previous earnings calls over the number of customers signed up.  Yup, that quantity over quality race to the finish was really helpful over the long term.  When FirstEnergy goes under, Tony can tell his investors that at least he beat AEP.

FirstEnergy now brags that it has filed a rate increase in West Virginia.  The company requested an increase of approximately $96 million, or 9.3%, and an allowed ROE of 11%, an increase of .5% over current return.  Never going to happen.  FirstEnergy neglected to mention the looming General Investigation, or any other number of regulatory venues where it finds itself in hot water, and analysts were just too polite to bring up all that nastiness.

FirstEnergy also brags about its new scheme to "invest" in its transmission system, after years of neglect while chasing big, new build projects.  Just like every other shiny object in FirstEnergy history, management's concentration on transmission blinds it to reality.

And Leila still hasn't learned to pronounce the word exacerbate.
Higher prices exasperated the earnings impact of our power purchases.
I don't know about you, but I'm thoroughly exasperated by these uneducated dolts.  Their money-grubbing, desperate and questionable legal maneuvers, such as foisting polar vortex "fees" off onto fixed rate customers, are not cute or prudent over the long run.  The schadenfreude continues to build as FirstEnergy continues to burn bridges with its customers, employees and regulators.
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FirstEnergy Files To Raise Potomac Edison and Mon Power Electric Rates

4/30/2014

9 Comments

 
As part of last year's PSC settlement allowing FirstEnergy to "sell" the Harrison Power Station from its competitive generation subsidiary to its regulated West Virginia utilities, the company was required to file a new base rate case with the PSC this month.

A company's base rate covers the utility's fixed costs and earns a return.  FirstEnergy's current West Virginia return (profit) is 10.5%.  Base rate cases are filed infrequently, usually at the initiative of the utility if it thinks it can increase earnings by doing so, or it may be ordered by a regulator as part of another deal.

FirstEnergy has asked for a $96M rate increase.  I haven't read the filing at the PSC yet, but I received several copies of this company-generated rubbish in my email today.  The company doesn't mention its requested return percentage, so I will assume it's the same, or even higher.

In addition to the more than a billion dollar cost of "buying" Harrison, the rate increase also includes:
...recovery of costs associated with storm repairs from the 2012 Derecho and Hurricane Sandy, along with operating costs at power stations, including new environmental control equipment. In addition, the rate request includes hiring 50 new company employees to help enhance service reliability.
So, how much is this going to cost you?
Currently, the monthly bill for a typical residential customer using 1,000 kilowatt-hours is about $92.62. If the proposed rate increase, including the cost of the new tree trimming program, is granted, the monthly bill would be about $106.79.
But, wait!  FirstEnergy wants you to know about all the value you're going to be getting!
Mon Power and Potomac Edison have not filed for an increase in base rates for nearly five years. The companies’ last major rate changes were a decrease in fuel-related rates of 5 percent on Jan. 1, 2013, and a rate reduction of 1.5 percent in October 2013 due to the Harrison acquisition.
Even with the full proposed increase and tree trimming surcharge, Mon Power and Potomac Edison residential rates would be 10 percent lower than the national average residential rates.
But, that's of little actual value when the company doesn't bother to read your electric meter for months on end and then sends you a gigantic bill for your accumulated usage once a year.  Don't worry though...
To help customers manage their bills, Mon Power and Potomac Edison offer an average payment plan, special payment plans, and access to energy assistance programs.
Just hop on the ol' FirstEnergy debt treadmill and run for your life!

Oh, and let's not forget... that extra $96M out of your pockets will now guarantee you better service!
“The filing will help ensure continued safe and reliable electric generation for our customers,” said Holly Kauffman, president of FirstEnergy’s West Virginia Operations. “On the utility side of our operations, the new employees will include linemen, engineers, supervisors and other personnel to help make the service we provide our customers even better and meet anticipated business growth in our state.”
Twit.
9 Comments

FirstEnergy Charged With Labor Violations by National Labor Relations Board

4/30/2014

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Ut-oh!  FirstEnergy's in trouble again!
The National Labor Relations Board has charged Akron-based FirstEnergy Corp. and its utility companies with unfair labor practices associated with the closing of two power plants in southwestern Pennsylvania.

Acting on complaints from the Utility Workers Union of America Local 102, which represents 850 FirstEnergy employees across three states, the NLRB is alleging that FirstEnergy refused to talk about job placement, severance and other benefits for workers at Mitchell and Hatfield’s Ferry power plants unless the entire union signed a new contract that included concessions in benefits and other changes. The two coal-fired power plants closed in October.

“They held all them folks hostage to try to get a contract that effected everyone in our bargaining unit unfairly,” said Bob Whalen, president of Local 102.
Why does FirstEnergy put so little value on the employees that keep its money vault full?  Qualified workers seem to be disposable at FirstEnergy.

Of course, our hero Toad Meyers pulls his usual "nuh-uh" act and threatens that FirstEnergy will tie this up in litigation endlessly.  That seems to be a FirstEnergy trademark -- because the company's mounting legal bills just get passed to its customers in their monthly electric bills.  Maybe if the company's shareholders had to start funding these pointless, never-ending legal shenanigans, management arrogance might come to a screeching halt?
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FirstEnergy and PEPCO Join Hands and Sing Kumbaya

4/29/2014

3 Comments

 
Every once in a while I run across a news story that has been picked up and mangled by a foreign news aggregator site, usually to hilarious results.

Today, I was informed that PEPCO, Mon Power and FirstEnergy were going to join hands and mangle our trees together.  Note, PEPCO won't be mangling these particular trees because it's just not true that Potomac Edison is "widely known as PEPCO," at least in this country.  I really don't know what they call it in New Delhi.  Potomac Edison is known by a lot of creative names in West Virginia, such as Perpetual Estimate, but PEPCO isn't one of them.

Sadly, this story may be accurate about actual events that could occur, "once all the errors are removed."

Potomac Edison To Adjoin Hands Together With Mon Power and First Energy Corp. (NYSE:FE) For Tree Trimming Program

Boston, MA 04/29/2014 (wallstreetpr) - Potomac Edison or widely known as PEPCO is one of the well known names in the field of electricity power supply, in the Washington DC area. According  to a recently published report,  Potomac Edison along with First Energy Corp. (NYSE:FE) And Mon Power has recently received an authorization from Public Service Commission (PSC) of Virginia for a new tree trimming program. This program will help in reducing the power outages due to various storms in the West Virginia area.

This tree trimming program will initially continue for a period of five years. Under this program, the tree trimming will be placed along with right-of-way vegetation for next five years. Once the initial set up is evaluated, and all the errors are removed then there are possibilities that the duration will be shorten to four years. Both First Energy Corp. (NYSE:FE) and Mon Power will focus on rural areas in which all the trees will be trimmed near distribution lines and transmission lines for the betterment of service reliability.

In a press conference the CEO and Head of First Energy Corp. (NYSE:FE)’s West Virginia Operations Holly Kauffman said,” Electricity is necessary for day to day life, and we know that extended outages due to major storms can be really difficult for our customers.” The company is trying to focus on tree trimming, transmission network, and distribution that will decrease the chances of electricity outages due to major storms and bed weather and concentrate on improved life style and overall service quality.

Though there can be several other factors which can cause electricity outage. These factors keep changing, and it is not possible for management to predict all the factors, thus a team of expert keep an eye over any such probability, so that if any such factor comes into the picture, it can be eliminated with immediate effect.
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More FirstEnergy Sucking

4/25/2014

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FirstEnergy's been doing a whole lotta sucking lately while I was otherwise engaged in super-sucky-secret FirstEnergy sucking shenanigans that I can't talk about.  But, the work week is over and now it's time for some FirstEnergy sucking fun.

Even Wall Street thinks FirstEnergy sucks.  Today, Citigroup reaffirmed its sell recommendation on FirstEnergy's sucky stock... because it sucks!
FirstEnergy Corp.‘s stock had its “sell” rating reiterated by stock analysts at Citigroup Inc. in a report issued on Thursday...

We're about due for another fun-packed FirstEnergy earnings call, where Tony the Trickster and his sucky band of merry thieves parade their suck-i-tude before the investment community.  Don't miss it!

In other sucky news,
FirstEnergy is still trying to bust its union workers, including desperately needed meter readers in West Virginia's eastern panhandle.
Local 102 represents about 690 of FirstEnergy’s linemen, substation workers, meter readers and technicians in the big electric utility’s Potomac Edison and West Penn Power territories.
About 125 of Local 102’s members work at Potomac Edison service centers in Williamsport; Frederick, Mount Airy and Thurmont, Md.; Martinsburg and Berkeley Springs, W.Va.; and Waynesboro and McConnellsburg, Pa.
Potomac Edison serves about 250,000 Maryland customers in an area stretching from Garrett County east to parts of Montgomery and Carroll counties, and about 132,000 customers in West Virginia’s Eastern Panhandle.
West Penn Power, whose territory includes Pennsylvania’s Franklin and Fulton counties, serves about 720,000 customers.
In March 2013, FirstEnergy began negotiations with Local 102 for a labor contract to replace the three-year pact that was to expire April 30, 2013.
What happened next is in dispute.
The company said the contract expired and the union members have continued working under the terms of the previous contract. The union, on the other hand, said the contract was extended for one year until May 1, 2014 — 10 days from today.

Asked last week whether that means a deadline is looming, FirstEnergy spokesman Toad Meyers said, “We’re not facing a deadline from the company’s standpoint. The plans are to continue to negotiate.”
Meyers, who is the utility’s spokesman for comment on negotiations with Local 102, didn’t mention the talks in Detroit.
He said “at least seven more negotiations” are scheduled with Local 102 leaders before April ends. He said he has “no idea” where those talks are taking place.
Asked Thursday what happens if an agreement isn’t reached by May 1, Whalen said there’s a “variety of things that could happen.
“First of all, we continue to work day by day,” Whalen said. “Or, the union could agree to sign an extension to work under the (last contract’s) terms for ‘x’ number of days.
“Or, depending on what (FirstEnergy is) thinking, they certainly have the ability to lock us out when they want,” the legality of which would “depend on where it’s at in the negotiations,” Whalen said.
“And then, the last thing, if we don’t have an extension, we have the right to strike,” Whalen said.
If a strike or a lockout were to come, Whalen said neither could happen until at least May 1, when the “no-strike, no-lockout provision” expires with what the union said is still the contract.
When is FirstEnergy going to stop treating its employees like trash?  And how much longer will the company's stockholders quietly suffer company mismanagement all the way to suckville?  I found the 5-year old Tony insults here to be quite creative, such as this one:
Tell Uncle Tony to take a cut in pay, put a pair of di electric boots up his a$$ filled with concrete and take a plunge in the Delaware. Italian my a$$ he is a embarrassment to the nationality and the human race. Some would call him "Yellow" not Uncle Tony or possibly numb-nuts. Yell "Mafia" and I bet he pees his pants.
These are FirstEnergy's faithful employees, the folks who actually keep your lights on.  Just how badly does FirstEnergy suck, anyhow?  The customers hate them, the employees hate them, the investment community hates them.  Something's wrong here...

And in other FirstEnergy sucking news.... check out the exchange going on in the Potomac Edison/Mon Power General Investigation case at the WV PSC, where FirstEnergy turned customer service into performance art.

The Coalition for Reliable Power filed this letter after noticing a new uptick in complaints about high bills and missed meter readings.  In response, FirstEnergy's lawyer called me (because, yes, I do wear another hat that comes with business cards) to request the names of all the customers who had complained so he could "help" them.  Like I'm going to give out a list of names, email addresses and phone numbers of people that have contacted the Coalition when they couldn't get any help from the company?  People just aren't comfortable with that, and neither am I.  Instead, I relayed FirstEnergy's customer service offer to everyone and let them volunteer.

I received my first response 12 minutes after sending out the notice.  It said:
Mon Power is an a$$-hole company. The WV PSC allows them to screw over consumers of electric.
Oh, this experiment isn't going to go well, is it?

It seemed to go swimmingly in FirstEnergy's fantasy world, however.

Here's the response of volunteer customer service experiment subject Kery Fries.  Doesn't sound like he agrees with Gary Jack's version, does it?

Finally, here's the Coalition for Reliable Power's response to Jack's letter.

When is this company's grand sucking failure going to finally be over?
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FirstEnergy's Sucking Vortex

4/25/2014

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FirstEnergy got sucked into its own vortex of, well, sucking today.  The company announced that it was capitulating on its intention to charge two million residential customers a one-time $5 - $15 fee as a "polar vortex" surcharge.  FirstEnergy says that the company will still charge a fee to its commercial and industrial customers that amounts to 1 to 3 percent of their annual electric costs, though.

You don't think that FirstEnergy actually intends to absorb this foregone cost, do you?  Of course not.  The sucky thieves at FirstEnergy will just find other, sneakier, ways to cheat its customers... a penny here, a nickel there... and before you know it FirstEnergy has managed to SUCK the money out of you anyhow without any of that nasty, messy bad publicity that came with being up front about how much the company sucks.

Or so they think.

After FirstEnergy made its sucky announcement last month, state public utility commissions and consumer advocates in affected states scurried toward opening investigations into the company's practice of adding the additional fees to what consumers thought were fixed rate contracts.  Just a little taste of FirstEnergy's sucky legal buggery, which everyone is getting mighty sick of about now. 

Does FirstEnergy think it's all better now?  The damage has already been done!  Everyone hates FirstEnergy!  The few who didn't before, do now, and they're going to get as far away from this mismanaged, money-grubbing, charlie foxtrot corporation as possible.  As Columbus Business First notes:
And the company still thinks is has the ability to charge extra fees to its customers, even if they have fixed-rate contracts, based on comments from FirstEnergy Solutions President Donald R. Schneider.
“It was a very difficult winter, particularly for residential customers, and hopefully waiving the surcharge will make it somewhat easier,” he said in a release. “Even though our contracts allow us to pass through surcharges, we have decided we won’t seek reimbursement from residential customers for the added costs.”
Run, little FirstEnergy Solutions customers, RUNNNN!!!

But, wait, maybe FirstEnergy can still keep a few customers by taking advantage of the Donny in a greasy ball cap and Simpsons t-shirt idea that they didn't use last time they created a confused and ridiculous advertising campaign.  We'll be here thinking up some nifty new ideas for FirstEnergy ads over a few beers, because all FirstEnergy's own ideas just seem to SUCK!
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FirstEnergy Takes Credit for Dominion Transmission Project

4/11/2014

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After two years of Dominion refusing to do any publicity on its Mt. Storm - Doubs transmission line rebuild, rival FirstEnergy has swooped in to take all the credit for the project.

Cue the irony.
While Dominion has been doing a great job with directly affected landowners, the company has completely failed to disseminate any information about its project to the greater community.  As if folks don't notice the access roads, the helicopters, the construction traffic, the road closures, the implosive splicing...  I've gotten mighty tired of having to reassure people that this is not the PATH project, that this is a permitted activity, and that the world is not exploding.  But I do it, not for Dominion, but for the people who are the victims of Dominion's "secret" rebuild project.

Mt. Storm - Doubs (MSD) is a smarter, better solution than building the PATH project ever was.  So, let's get 'er done, fellas,  so that I can stop having this distraction sitting on the edge of a rather full plate
.

The MSD transmission line begins in Mt. Storm, West Virginia
and ends at the Doubs substation in Frederick County, Maryland.  The 96 miles of the line located in West Virginia and Virginia are owned by Dominion.  The last 3 miles of the line in Maryland are owned by FirstEnergy.  Each company is responsible for permitting and constructing its own segment of this project.  Dominion has been working on its portion of the project for more than 4 years.  FirstEnergy only recently got off it's corporate ass to do its part on the last three miles.

Well, yay, FirstEnergy!  You da man!  Fourteen transmission towers and 3 miles of line? 
Awesome!  Put Toad Meyers in a hardhat and push the "on" button.  That should ameliorate your billing and meter reading fiasco, right?

Wrong.

Back in 2010, while the PATH was still madly attempting to get it's 300 mile, 765kV transmission line sited and permitted
on new right of way, Dominion dropped a bombshell on transmission planner PJM Interconnection.  Dominion proposed several alternatives to the PATH project (which was never actually "needed").  One of the alternatives involved rebuilding MSD because of deteriorating towers.  A rebuilt and modernized MSD would increase the thermal capacity of the existing line 66% and make the addition of PATH's capacity unnecessary.  Both PJM and PATH partners FirstEnergy and AEP tried to deny the proposal and insist that PATH was still necessary.   That was the beginning of the end for PATH.  The Virginia SCC got mighty suspicious and ordered PJM to re-run some data on the necessity for PATH if MSD was rebuilt.  Low and behold, the data showed that there really wasn't a need for PATH after all and PJM suspended (and later cancelled) the PATH project.  PATH withdrew all its project applications and went into hiding, after wasting a quarter billion dollars of consumer funding on the project.

Ahhh... good times!  :-)

Now FirstEnergy says "look at me!" and give me credit for modernizing the electric grid.

Kind of makes you wish that someone would drop a load of insulators on Toad's hard hat, doesn't it?


Oh, what would I do if I didn't have this little outlet...

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FirstEnergy Fantasy

4/9/2014

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FirstEnergy's frequent financial fiascos aren't Tony's fault! 

Poor management pointed the finger at everyone else yesterday during some silly Chamber of Gladhanders event.

The quotes in the news article were bad enough, but check out the full text of the fairy tale here.

If Tony actually believes any of this stuff, he needs to exit stage left:

"All of us have been challenged by the economy over the last few years."

Well, except for you and your 1% pals, right?  After all, how much of a struggle is it to survive on $23M a year?  Almost as hard as it is to survive locked out of your job for months because your employer is a union buster, I'm sure.

"For example, in FirstEnergy’s six-state service area, our 2013 utility sales were below 2007 levels – and, during that period, wholesale energy prices dropped by more than 40 percent.  While this isn’t the first time we’ve faced tough economic conditions, this is the longest period of economic stagnation I’ve seen in my 40 years in the industry.  We will ultimately work through this… and as the economy grows, so will the use of electricity."

It's called energy efficiency, Tony.  It's permanent.

"But quite frankly, the challenges we now face from government interference in the electric business are far more intrusive and disruptive, and I believe far more significant to our industry’s future, and to your future.  That’s because whether it impacts our traditional regulated business or our competitive operations, government policy is now aimed at stifling the growth and use of electricity – and picking winners and losers in the competitive marketplace."

Oh, puh-leeze.  FirstEnergy was singing a different tune when the West Virginia government puppets at the PSC "interfered" in FirstEnergy's scheme to sell a dirty, old coal plant to itself and charge West Virginia ratepayers over a billion dollars for it.  Not only was having FirstEnergy's dirty trash dumped on ratepayers intrusive and disruptive to the amount we pay for electricity, it's effect is going to last well into the future.  The mistakes of FirstEnergy's competitive operations got dumped into its regulated business, and that stifles economic growth and use of electricity in West Virginia.  Worst of all, the PSC allowed FirstEnergy to pick winners and losers in the competitive marketplace.  Yeah.  FirstEnergy wins, we lose.

"Or, would you think it is fair to face competition from a supplier who can be indifferent to price… since all of its costs, including a return on investment, are guaranteed?"

What?  Every stinking penny of FirstEnergy's $121M dollar investment in its unneeded PATH project was earning a 14.3% return on investment, and recovery of its sunk costs are guaranteed in the event of abandonment.  FirstEnergy spent generously because it was indifferent to the ultimate quarter billion dollar abandoned price to ratepayers.

In addition, FirstEnergy is well on its way to plunking its "transmission spend" into a whole bunch of dubious projects, just to earn a big return on the investment.  That's not "fair."  Right.

"The industry has invested more than $840 billion… employs more than 500,000 workers… and pays billions of dollars in taxes."

But FirstEnergy earns a return on its investment, treats its workers like garbage, and doesn't pay any taxes!

"Thomas Sowell, a noted economist and commentator at Stanford, summarized a broader trend, now playing out in our nation’s energy policy, when he said, quote: “Much of the social history of the western world, over the past three decades, has been a history of replacing what worked with what sounded good.”

In the electric utility industry, energy efficiency, renewable power, distributed generation, micro grids, roof-top solar and demand reduction are examples of what “sounds good” – and while they may all play some role in meeting the energy needs of customers, they are not substitutes for what has worked to sustain a reliable, affordable and environmentally responsible electric system.  And, the mandates and subsidies needed to force their use have far-reaching consequences for our customers and our economy."


Energy efficiency, renewable power, distributed generation, micro grids, roof-top solar and demand reduction sounds like a workable, and inevitable, future to me.  Tony can either get in the backseat or get left behind.  His choice. 

Thomas Sowell quote?  Really?

 
"Consider the fact that you can no longer buy a 100-watt incandescent light bulb in the United States, but you can purchase a 500-horsepower vehicle."

Oh, the horrors!  Wanna bet that Tony is an incandescent bulb hoarder?  He probably sits in his underground bunker with huge stack of them, crying quietly.

"Or that electric customers are being forced to pay additional costs for subsidized, unneeded generation."

Is he talking about Harrison?

"Or that these policies and others – designed to achieve a social agenda that has little, if anything, to do with maintaining electric service – are shifting the fixed costs of the system to customers who can least afford it… and are undermining our nation’s competitive position."

"So why are we engaged in this effort to experiment with the electric system by taking away customer choice… increasing prices… and jeopardizing reliability?"

Why are you doing that to West Virginia, Tony, WHY?

"Quite frankly, I believe state and federal policymakers are manipulating the supply and demand, and distorting markets for electricity, to further advance the “war on coal.”

Well, quite frankly, I believe FirstEnergy is manipulating the supply and demand and distorting the markets for electricity, to further advance corporate profits.

"Some generating units were off-line as natural gas was used to meet higher priorities – and the entire market was affected by a substantial increase in the price of natural gas.  To put this price increase in perspective, it was the equivalent of paying about $85 per gallon of gasoline!"

And one of FirstEnergy's nuke plants was also off-line, right?  And then prices went up, and FirstEnergy charged more than 2 million customers a "polar vortex fee" that's now under investigation by more than one state regulatory commission.

"As President Ronald Reagan stated in a letter to Congress on July 17, 1981, “Our national energy plan should not be a rigid set of production and conservation goals dictated by government… When the free market is permitted to work the way it should, millions of individual choices and judgments will produce the proper balance of supply and demand our economy needs."

Because the only thing more trite than a Ronald Reagan quote is comparing your issue to the Holocaust, right?
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    About the Author

    Keryn Newman blogs here at StopPATH WV about energy issues, transmission policy, misguided regulation, our greedy energy companies and their corporate spin.
    In 2008, AEP & Allegheny Energy's PATH joint venture used their transmission line routing etch-a-sketch to draw a 765kV line across the street from her house. Oooops! And the rest is history.

    About
    StopPATH Blog

    StopPATH Blog began as a forum for information and opinion about the PATH transmission project.  The PATH project was abandoned in 2012, however, this blog was not.

    StopPATH Blog continues to bring you energy policy news and opinion from a consumer's point of view.  If it's sometimes snarky and oftentimes irreverent, just remember that the truth isn't pretty.  People come here because they want the truth, instead of the usual dreadful lies this industry continues to tell itself.  If you keep reading, I'll keep writing.


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