FirstEnergy Pennsylvania Outlines New Plan for Buying Electricity Starting in 2027

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.

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

Argus Feb 4 session

-1.04% close to close Open Argus

Details

News Market Reaction – FE

On Feb 4, the day this news came out, FE closed 1.04% below the previous close.

Data tracked by StockTitan Argus for the Feb 4 session.

Key Figures

Generation share of bill: 60 percent Pennsylvania customers: more than two million Auctions in 2027: January, April and November +5 more

Generation share of bill

60 percent

Portion of typical Pennsylvania customer bill tied to generation supply

Pennsylvania customers

more than two million

FE PA customer base served under the Default Service Plan

Auctions in 2027

January, April and November

Proposed schedule for 2027 default service supply auctions

Auctions 2028–2031

January and November

Proposed schedule for 2028–2031 default service auctions

New peak hours

3–7 p.m.

Adjusted Time-of-Use program on-peak window

Current peak hours

2–9 p.m.

Existing Time-of-Use program on-peak window to be shortened

DSP start date

June 1, 2027

Start of new electricity procurement period for default customers

Decision timing

end of 2026

Expected PaPUC ruling deadline on the Default Service Program

Historical Context

5 past events · Latest: Jan 30

5 events

1. Jan 30

   Bill credit program

   24h Move

   +0.0%

   Maryland residential customers receive automatic bill credits under state relief program.

2. Jan 28

   Grid upgrade spend

   24h Move

   -0.2%

   Underground cable upgrades in McKean County under LTIIP III and Energize365.

3. Jan 23

   Storm readiness update

   24h Move

   -1.0%

   Crews staged and systems prepared for winter storm across six-state area.

4. Jan 13

   Earnings webcast notice

   24h Move

   +1.9%

   Announcement of Q4 and full-year 2025 results release and analyst call schedule.

5. Jan 09

   Philanthropic donation

   24h Move

   -0.1%

   $25,000 FirstEnergy Foundation grant to Fill a Glass with Hope® program.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

default service plan, pennsylvania public utility commission, price to compare, time-of-use, +1 more

5 terms

default service plan regulatory

"has filed a new Default Service Plan (DSP) with the Pennsylvania"

A default service plan is the standard package of features, pricing and terms a company assigns to customers unless they choose or qualify for a different option; think of it as the baseline cable or phone plan most users get when they sign up. Investors care because this plan largely determines the company’s recurring revenue per customer, profit margins, customer retention and the potential to upsell — all key drivers of future cash flow.

pennsylvania public utility commission regulatory

"Default Service Plan (DSP) with the Pennsylvania Public Utility Commission"

Pennsylvania Public Utility Commission is the state agency that regulates utilities such as electricity, natural gas, water, sewage and some telecommunications within Pennsylvania. It decides prices, approves or denies major infrastructure projects and enforces service and safety rules, so investors watch its rulings much like referees in a game — their calls can change a utility’s revenue, costs and ability to expand.

price to compare financial

"The winning bids are used to set the "price to compare" or the utility's"

The price to compare is the baseline unit price a customer currently pays for a service—most commonly seen in energy markets for electricity or gas—used to judge whether a new offer is cheaper or more expensive. For investors, it reveals the reference point for customer switching and competitive pressure: a lower price to compare makes it harder for rival suppliers to win customers, while a higher one signals room for new entrants or promotional plans to attract business.

time-of-use technical

"FE PA's Time-of-Use program, designed to help customers save by"

Time-of-use is a pricing approach that charges different rates for a service depending on the time of day, with higher prices during peak demand and lower prices during off-peak hours—think of it like rush-hour tolls for electricity or other utilities. Investors care because it changes consumer behavior, shifts when and how much customers use a service, and can alter company revenue patterns, infrastructure needs, and the value of flexible technologies like batteries or smart meters.

transmission lines technical

"subsidiaries operate approximately 24,000 miles of transmission lines that"

High-voltage towers and cables that carry electricity from power plants to cities and substations, like highways that move energy rather than cars. For investors, transmission lines are long-lived, capital-intensive assets whose condition, capacity and regulatory treatment affect utility revenues, reliability and the ability to connect new generation; bottlenecks or upgrades can change costs, permit timelines and future returns.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Proposal strengthens customer protections and makes energy choices easier to understand

GREENSBURG, Pa., Feb. 4, 2026 /PRNewswire/ --  FirstEnergy Pennsylvania Electric Company (FE PA), a FirstEnergy Corp. (NYSE: FE) company, has filed a new Default Service Plan (DSP) with the Pennsylvania Public Utility Commission (PaPUC).

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 Pennsylvania, so the way this power is purchased plays a major role in keeping overall costs manageable.

FE PA, known locally as Met-Ed, Penelec, Penn Power and West Penn Power, provides electricity to more than two million customers in Pennsylvania.

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 Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at firstenergycorp.com and on X @FirstEnergyCorp.

View original content to download multimedia:https://www.prnewswire.com/news-releases/firstenergy-pennsylvania-outlines-new-plan-for-buying-electricity-starting-in-2027-302679437.html

SOURCE FirstEnergy Corp.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When will FirstEnergy Pennsylvania (FE) begin buying default electricity under the new plan?

FE plans to begin purchasing default electricity on June 1, 2027. According to the company, auctions will be held in January, April and November 2027 and January and November 2028–2031 to set default supply rates.

How does the new Default Service Plan affect typical customer bills for FE (NYSE: FE)?

Generation supply makes up about 60% of a typical Pennsylvania bill, so purchasing changes can affect costs. According to the company, competitive auctions and payment limits aim to lower supply costs and reduce unexpected pass‑through charges.

What consumer protections does FirstEnergy Pennsylvania (FE) propose in the 2027 DSP?

FE will automatically return customers to default service when fixed contracts end and require quarterly confirmation for variable plans. According to the company, these steps are meant to prevent customers from unknowingly paying higher supplier rates.

How will Time‑of‑Use hours change under FE Pennsylvania's proposed plan?

Peak hours would shorten to 3–7 p.m. instead of 2–9 p.m. According to the company, the narrower peak window is intended to give customers clearer, smaller peak periods to shift usage and potentially lower bills.

What auction schedule did FirstEnergy Pennsylvania (FE) file for default supply procurement?

FE proposes auctions in January, April and November of 2027, then January and November for 2028–2031. According to the company, CRA International will run the auction process to secure competitive bids for default supply.

When will the Pennsylvania regulator decide on FE Pennsylvania's Default Service Program?

The PaPUC is expected to rule by the end of 2026. According to the company, that decision will determine whether the proposed procurement schedule and customer protections take effect for June 1, 2027 service.