FirstEnergy Self-Dealing Scheme Not In The Best Interest of Potomac Edison/Mon Power Customers

...so sayeth "The P3 Group," aka PJM Power Providers Group, a non-profit group of competitive energy providers in the PJM region collectively owning over 84,000 megawatts of generation assets.  P3 is joined by the Electric Power Supply Association (EPSA), a national power providers' trade association.

These two groups popped up with a comment this week in the West Virginia Public Service Commission case regarding the issuance of a Request for Proposals for additional power supply for FirstEnergy's Mon Power and Potomac Edison subsidiaries.

The power providers say that the PSC has the authority to require FirstEnergy to issue an RFP for additional supply, and that only an RFP will ensure that Potomac Edison and Mon Power customers get the best price for new generation.

The best and most appropriate manner for this Commission to fully examine potential supply options would be with the use of a broad, competitively neutral RFP in which multiple suppliers could actively compete to meet the needs of West Virginia consumers. This would ensure that all available supply-side and demand-side resources are transparently reviewed in accordance with the state’s applicable rules and laws.

It doesn't take a rocket scientist to figure out that soliciting competitive bids for power will produce the lowest cost.  But if you're FirstEnergy, you don't care about costs for West Virginia electric customers, you only care about your holding company's balance sheet and stock price.

The power providers quoted a research paper prepared by the National Association of Regulatory Utility Commissioners and the Federal Energy Regulatory Commission as support for an RFP:

The first key issue for incremental resource procurements is the design of safeguards to prevent potential improper self-dealing by the utility. Because the utility may financially benefit from the selection of its own self-build offer or a proposal from an affiliate, safeguards are necessary to ensure that the process is not improperly tilted toward the selection of such offers.

The power providers join the West Virginia Consumer Advocate Division, the Staff of the Public Service Commission, WV Citizen Action Group, WV SUN, and West Virginia Energy Users Group in calling on the Public Service Commission to order FirstEnergy and its subsidiaries to issue and RFP that will definitively and transparently determine the cheapest resource for adding additional capacity.

What is it FirstEnergy is trying to hide with its opaque self-dealing insistence that the purchase of one of FirstEnergy's own resources is a "good deal" for West Virginians?  Sunshine is the best disinfectant!