Earlier this week, the second of six wholesale auctions was held to determine FirstEnergy’s default generation rates for the period from June 1, 2011 to May 31, 2014. The PUCO approved the results of the auction at its meeting on Thursday. The auction resulted in the following prices:
- 5.613 cents per kilowatt hour (kWh) for the period from June 1, 2011 to May 31, 2012
- 5.410 cents per kWh for the period from June 1, 2011 to May 31, 2013
- 5.658 cents per kWh for the period from June 1, 2011 to May 31, 2014
These prices are averaged with the results of a similar auction that was held last October to determine the prices for the year beginning on June 1, 2011. The resulting weighted average price from both auctions is 5.56 cents per kWh for the 12 months beginning on June 1, 2011.
This average wholesale price will be converted by the utilities to retail rates that will vary by rate schedule and season. Note also that FirstEnergy’s current default charges cover both generation and transmission services. Starting in June, the default charges will be for generation only. The transmission charges will be passed through to the customer. Thus, these auction results and any price quotes from alternative suppliers cannot be compared directly to current rates.