FirstEnergy Pennsylvania Outlines New Plan for Buying Electricity Starting in 2027
Rhea-AI Summary
FirstEnergy Pennsylvania (NYSE: FE) filed a Default Service Plan to buy electricity for default customers starting June 1, 2027, using competitive auctions and new consumer protections. The plan notes generation supply is about 60% of a typical bill, proposes auction schedules for 2027–2031, and shortens Time‑of‑Use peak hours to 3–7 p.m.
The PaPUC is expected to rule by the end of 2026; the filing also proposes automatic returns to default service when fixed or month‑to‑month supplier contracts end.
Positive
- Competitive auctions scheduled to reduce supply costs beginning June 1, 2027
- Proposed limits on automatic supplier payments to reduce bill pass‑through
- Time‑of‑Use peak hours shortened to 3–7 p.m., lowering peak exposure for customers
Negative
- Default service rate still adjusts twice a year, allowing potential rate variability
- Month‑to‑month suppliers require quarterly customer confirmation, increasing churn risk
- Large industrial customers remain on hourly market pricing, exposing them to spot volatility
Key Figures
Market Reality Check
Peers on Argus
While FE was down 0.21%, several close peers were positive, including AEE (+1.77%), ES (+1.03%), EIX (+1.18%) and WEC (+2.15%), with only PPL down (-0.98%). This points to more company‑specific trading than a broad sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 30 | Bill credit program | Positive | +0.0% | Maryland residential customers receive automatic bill credits under state relief program. |
| Jan 28 | Grid upgrade spend | Positive | -0.2% | Underground cable upgrades in McKean County under LTIIP III and Energize365. |
| Jan 23 | Storm readiness update | Neutral | -1.0% | Crews staged and systems prepared for winter storm across six-state area. |
| Jan 13 | Earnings webcast notice | Neutral | +1.9% | Announcement of Q4 and full-year 2025 results release and analyst call schedule. |
| Jan 09 | Philanthropic donation | Positive | -0.1% | $25,000 FirstEnergy Foundation grant to Fill a Glass with Hope® program. |
Recent company news—largely regulatory, infrastructure, and customer-focused—has usually produced modest price moves, with a slight bias toward divergence between seemingly positive headlines and short-term price reaction.
Over the last month, FirstEnergy has highlighted a series of customer- and infrastructure-focused developments. Maryland customers were set to receive targeted bill credits on Jan. 30, 2026, while Penelec reliability upgrades tied into a broader $538 million LTIIP III and $28 billion Energize365 plan. The company also detailed winter storm readiness and continued philanthropic support via a $25,000 grant. An upcoming Q4 2025 earnings webcast was announced for Feb. 17–18, 2026. Today’s Pennsylvania Default Service Plan proposal fits this pattern of regulatory and customer-bill focused communication.
Market Pulse Summary
This announcement outlines FirstEnergy Pennsylvania’s proposed Default Service Plan beginning June 1, 2027, focusing on competitive auctions, automatic re‑enrollment to default service, and a shorter Time‑of‑Use peak window of 3–7 p.m. It complements recent reliability upgrades and customer bill initiatives across the broader FirstEnergy footprint. Investors may monitor the Pennsylvania Public Utility Commission’s expected decision by the end of 2026, as well as how auction schedules and supplier guidelines influence customer rates and load management over time.
Key Terms
transmission lines technical
AI-generated analysis. Not financial advice.
Proposal strengthens customer protections and makes energy choices easier to understand
The plan explains how FE PA will buy electricity beginning June 1, 2027, for customers who don't select an alternate supplier and adds new protections to help ensure customers don't overpay for electricity. Electricity generation supply makes up approximately 60 percent of a typical customer's bill in
FE PA, known locally as Met-Ed, Penelec, Penn Power and West Penn Power, provides electricity to more than two million customers in
John Hawkins, President, FirstEnergy Pennsylvania: "Customers are navigating a challenging economic environment, and we recognize how difficult rising household costs can be. While we don't control electricity generation prices, we can take steps to help protect customers from paying more than necessary. This plan introduces new safeguards to reduce the risk of unexpected rates and give customers greater clarity and stability. We care deeply about the people who rely on us every day, and this is another way we're trying to help keep their bills fair, clear and manageable."
A Clear, Competitive Process for Buying Power
Because FE PA does not own any power plants, it must buy electricity on behalf of customers who do not choose an alternate supplier. Under the new plan, FE PA would continue using a competitive auction to purchase that electricity at the lowest cost to customers.
Here's how it works:
- Energy suppliers compete to offer the lowest prices.
- The winning bids are used to set the "price to compare" or the utility's standard fixed rate for electricity supply.
- This rate adjusts twice a year, and customers can use it or decide whether another supplier is offering a better deal.
Customers who do not choose an alternate supplier will pay the default service rate for the electricity they use. Large industrial customers who do not select an alternate supplier will continue to pay an hourly market-based price.
FE PA plans to continue to use CRA International, Inc., a consulting firm with experience in energy markets, to run the auction process. In 2027, FE PA proposes to hold auctions in January, April and November. Beginning in 2028 through 2031, auctions would be held in January and November.
New Protections to Help Keep Bills Manageable
The proposed plan includes several changes aimed at ensuring customers aren't unknowingly paying more for electricity than they intend, including:
- When a fixed‑term supply contract ends, residential customers would be automatically returned to FE PA's standard default service unless they choose to continue with their supplier.
- Customers on month‑to‑month variable rate plans would also return to default service unless they confirm every quarter that they want to stay on their supplier's variable plan.
- New guidelines for suppliers would encourage them to offer prices lower than the utility's price to compare, giving customers more opportunities to save. These guidelines will also limit how much we automatically pay to suppliers each billing cycle. Today, we pay suppliers before customers pay their bills, and unpaid charges get passed on to everyone. These limits help reduce how much can be passed on.
FE PA's Time-of-Use program, designed to help customers save by shifting energy use to off-peak hours, would also be adjusted. Peak hours would shorten to 3-7 p.m. instead of the current 2-9 p.m.
The PaPUC is expected to rule on FE PA's Default Service Program by the end of 2026. More details about the filing are available on FirstEnergy's website at www.firstenergycorp.com.
FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation's largest investor-owned electric systems, serving more than six million customers in
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SOURCE FirstEnergy Corp.
FAQ
When will FirstEnergy Pennsylvania (FE) begin buying default electricity under the new plan?
How does the new Default Service Plan affect typical customer bills for FE (NYSE: FE)?
What consumer protections does FirstEnergy Pennsylvania (FE) propose in the 2027 DSP?
How will Time‑of‑Use hours change under FE Pennsylvania's proposed plan?
What auction schedule did FirstEnergy Pennsylvania (FE) file for default supply procurement?
When will the Pennsylvania regulator decide on FE Pennsylvania's Default Service Program?
