"Once we review this agreement will are hoping that it will lead to a decrease in rates for customers right off the bat with a reduction of about a $1.50 to the average residential customer." said Todd Meyers, First Energy Spokesman.

1. First Energy and Mon Power must agree through written verified statements filed in the record in this case within ten days of the date of this Order that they understand and agree that if First Energy does not make additional equity investment in Mon Power to cover the decline in equity caused by the write-off of the $332 million (pre-tax) Acquisition Adjustment, Mon Power must agree not to pay, and First Energy must agree that it will not receive, any dividends from Mon Power until the equity to total capital ratio of Mon Power returns to forty-five percent.

2.    First Energy, AE Supply, Mon Power and Potomac Edison must agree through written verified statements filed in the record in this case within ten days of the date of this Order that they understand and agree to allow the initial $257 million Acquisition Adjustment to be subject to adjustment through a refund from First Energy or AE Supply if the FERC determines that purchase price paid by Mon Power exceeds the fair market valuation of Harrison. If the FERC makes such a determination, the portion of the $257 million Acquisition Adjustment that exceeds fair market value will be returned to Mon Power by either First Energy or AE Supply, and the refund will be credited to the Acquisition Adjustment account.

3.  First Energy, Mon Power and Potomac Edison must agree through verified written statements filed in the record in this case within ten days of the date of this Order that they understand and agree that the return on, and return of, the $257 million Acquisition Adjustment will be allowed in base rates only to the extent that fifty percent of the net margins from off-system transactions from the additional Harrison capacity acquired by Mon Power will support that return. The full return requirement will be allowed each year subject to prospective adjustment based on a review of the achieved net margins from off-system sales in relation to the amount of return requirement built into the initial surcharge, and thereafter base rates. During the initial Surcharge true-up period, and thereafter when the return component on the Acquisition Adjustment is built into base rates, we will consider fifty percent of net margins on off-system sales attributable to the additional Harrison capacity as available for return on, and of, the remaining balance of the $257 million Acquisition Adjustment authorized in this case. This will not affect the ENEC calculations. If the monthly accumulation of return requirements previously built into the initial surcharge and thereafter base rates of MPPE between base rate cases exceed the allowable amount based on the achieved net margins on off-system sales, a prospective adjustment credit will be embedded in prospective base rates, If the monthly accumulation of return requirements previously built into the initial surcharge or base rate of MP/PE between base rate cases is less than the allowable amount based on the achieved net margins of off-system sales, no prospective adjustment will be made to base rates. Each base rate case will reset the balance of the net return components to allowable amount on the achieved net margins of off-system sales to zero.

The Commission will not authorize Mon Power and Potomac Edison to enter into the Revised Agreement at this time because of concerns regarding certain aspects of the Revised Agreement, including (i) operation of public utility generation and market-regulated plants of First Energy by FE GenCo, (ii) separation of responsibilities for economic dispatch, market offers, and planned outages between utility regulated plants with captive customers and market-regulated plants, (iii) whether provision of generation services by FE GenCo will be provided at cost or at higher market-based price if that exceeds the FE GenCo costs of operating the Mon Power generation plants, and (iv) liabilities that FE GenCo may have if there are claims or damages related to the Mon Power plants resulting from operating decisions made by FE GenCo,

October 23, 2013 - 5:30 p.m.
Location:  Shepherd University, Frank Ctr., Shepherdstown, WV
October 24, 2013 - 9:30 a.m.
Location:  Shepherd University, Frank Ctr., Shepherdstown, WV

October 24, 2013 - 5:30 p.m.
Location:  West Chester Village, Stafford Room, Fairmont, WV
October 25, 2013 - 9:30 a.m.
Location:  West Chester Village, Stafford Room, Fairmont, WV

...the Commission directs FirstEnergy to provide a representative that will make a presentation at each hearing, lasting approximately one hour. The presentation should, at a minimum, discuss (i) the circumstances that gave rise to the current customer meter reading and billing problems, (ii) how the merger and severe storms in 2012 affected customer meter reading and billing, (iii) changes implemented to improve customer meter reading and billing, (iv) planned changes to improve customer meter reading and billing and (v) services available to customers continuing to experience meter reading and billing problems.

FirstEnergy should arrange for its representative(s) to have access to customer records at each hearing to the extent possible and be available to speak with customers individually after the completion of public comment.

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