(Source: Datamonitor)
US-based FirstEnergy has said that its Ohio power utility companies, Ohio Edison, The Cleveland Electric Illuminating Company and Toledo Edison, have filed an application for a market rate offer to provide electricity generation service to retail customers who choose not to shop with alternative suppliers.
The market rate offer, which was filed with the Public Utilities Commission of Ohio, would establish a competitive bidding process (CBP) to secure electricity generation supply and pricing beginning June 1, 2011.
The proposed process is similar to the CBP conducted earlier in 2009 to secure generation supply for FirstEnergy's Ohio utility customers through May 31, 2011.
The CBP would be managed by CRA International, a consulting firm with expertise in energy markets and procurement. The proposed CBP calls for two initial bid solicitations in 2010, one in June 2010 and one in October 2010, with varying supply periods of 12, 24 and 36 months.
Anthony Alexander, president and CEO of FirstEnergy, said: "This CBP has several key enhancements, including multiple bidding sessions and staggered contract lengths, to further reduce potential price volatility, reduce supplier risk and encourage bidder participation. The process is designed to deliver the most competitively priced power for our Ohio customers through a vibrant auction process."
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