When FirstEnergy first proposed its Harrison scheme in WV, they had to deal with a big problem. Electricity prices on PJM’s wholesale markets are currently very low, and are projected to remain low for at least the next five years. But FirstEnergy wanted to sell an expensive coal-burner to WV rate payers and that electricity would be much more expensive than PJM’s market prices.
What to do? They did what all propagandists do. They created a fake boogie man. PJM prices are low now, but they will go up eventually. Oooo, market instability.
Well, we learned yesterday that FirstEnergy has no problem purchasing PJM power for its other utilities in other states. Keryn has done an analysis of yesterday’s investor call. Here is one of the many nuggets she found:
4. Michael Lapides of Goldman Sachs got Donny Schneider off into a discussion of purchased power, where our hero stated, “We’re very comfortable with being able to procure power to serve load. For years, prior to our merger with Allegheny, we served all of the Penelec and Met-Ed [FirstEnergy-owned PA utilities] load, and I think that in total was about 30 terawatt hours a year, and we did almost of all of that with purchased power.” But now, all of a sudden, FirstEnergy is telling the WV PSC that relying on purchased power to serve Mon Power/Potomac Edison load is too risky and too expensive and that purchasing Harrison is a better idea. Giggle break! 🙂 Was Lapides REALLY asking about “exposure?”
So, 30 terawatt hours of purchased power per year is “very comfortable” in PA, but in WV it’s