FirstEnergy Plans To Consolidate Its Transmission Assets Into PJM

Published: 31-Jul-2009

By: Staff Writer Staff Writer Staff Writer

Ohio-based FirstEnergy, a diversified energy company, intends to consolidate all of its transmission assets into a single Regional Transmission Organization (RTO). In a proposal with the Federal Energy Regulatory Commission (FERC) that is expected to be made in August 2009, the company would request the consolidation into PJM Interconnection (PJM).

FirstEnergy's American Transmission Systems (ATSI) subsidiary - which includes transmission assets within the service territories of Ohio Edison, Cleveland Electric Illuminating, Toledo Edison and Pennsylvania Power (Penn Power) are presently operated under the Midwest Independent Transmission System Operator (MISO).

Anthony J. Alexander, president and chief executive officer of FirstEnergy, said: "Aligning all of our transmission assets with PJM will provide customers with the benefits of a more fully developed retail choice market and enhanced long-term planning that supports construction of new generation when and where it is needed. In addition, PJM supports incentive-based demand response and energy efficiency programs that give customers more control over their energy use and encourage peak load reductions that drive down prices for customers."

ATSI has 32 interconnections with PJM, physical transmission ties that connect to other utility systems, compared to just three with MISO. The consolidation into PJM also would provide greater access to merchant generation, resulting in enhanced flexibility to meet customers' electricity needs.

Alexander, said: "This change is not a reflection on the job MISO has done for us over the years. In fact, the service and leadership that MISO has provided has been excellent. It's simply recognition that PJM is a better fit for our competitive focus."

FirstEnergy plans to consolidate its transmission assets and operations into PJM on June 1, 2011, with approval of its request with FERC.

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