FirstEnergy Pennsylvania Electric Company Default Service Program DSP-VI

FirstEnergy Pennsylvania Electric Company (FE PA) is conducting competitive auctions to procure Default Service products for all retail customers taking generation service from the Company. Two separate simultaneous auctions will be held: a Fixed-Price Auction (Residential/Commercial) and an Hourly-Priced Auction (Industrial). These auctions will procure full requirements, load-following energy and energy-related services, including energy, capacity, ancillary services, and transmission service (NITS) for the applicable delivery periods.

Default Service Load will be divided into identical tranches, each representing a defined percentage of Default Service Load. Winning bidders must assume all responsibilities of a PJM Load Serving Entity (LSE), including all PJM administrative expenses and required services or fees. Suppliers are required to provide all Alternative Energy Credits (AECs) necessary to meet Alternative Energy Portfolio Standards (AEPS) obligations, except for certain Solar Photovoltaic Alternative Energy Credits (SPAECs) that will be allocated by FE PA.

The auction will use a simultaneous, multiple-round, descending-price clock format. Registered Bidders will submit bids during rounds via a secure Bidding Website. Announced prices will decrease round by round for over-subscribed products until no products are over-subscribed and the auction closes. All bids are irrevocable and binding. The auction will determine winning tranches, winning bidders, and winning prices based on a clearing price mechanism where all winning bidders for a product are paid the same price.

Key deadlines include: Part 1 Application due no later than 12:00 p.m. noon Eastern Time on the specified Part 1 Application Due Date; Part 2 Application due no later than 12:00 p.m. noon Eastern Time on the specified Part 2 Application Due Date; and winning bidders must execute the Supplier Master Agreement (SMA) within three (3) business days following the Commission's approval of auction results. The Independent Evaluator (CRA International, Inc.) will manage the auction process and all bidder communications.