The Public Utilities Commission of Ohio (PUCO) accepted the results of the third of six wholesale auctions that will ultimately determine FirstEnergy's retail generation service rates through May 2014.
"The wholesale generation auction process continues to yield positive results," PUCO chairman Todd A. Snitchler stated. "The clearing price set in this week's auction compares favorably with previous auctions. Competition and market forces have clearly been shown to help keep electric generation costs low for FirstEnergy customers."
The 14 round auction was conducted on Oct. 25, 2011, resulting in a clearing price of $52.83 per megawatt hour.
This price will be blended with the prices received in two previous auctions and an upcoming January 2012 auction to determine FirstEnergy's retail generation service rate from June 1, 2012, through May 31, 2013.
CRA International served as the independent auction manager.
Boston Pacific Company, Inc., a consultant retained by the PUCO, monitored the auction process. Thirteen bidders registered to participate in the auction, and five submitted winning bids. The names of the winning bidders will be released by the PUCO in 21 days.
Additional auctions will be held to finalize the retail generation rate for June 1, 2013-May 31, 2014