FirstEnergy Corp. (NYSE:FE) Approaches US Energy Secretary For An Emergency Order To Safeguard the Electric Grid

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FirstEnergy Solutions Corp. (FES), a subsidiary of FirstEnergy Corp. (NYSE:FE), has approached Mr. Rick Perry, the US Energy Secretary, to direct PJM Interconnection to start the negotiation immediately for securing the coal fired and nuclear power plants for the long term. It also urged the secretary to compensate the plant owners for offering the full benefits to the public and the energy markets.

The US Energy Secretary has the powers to issue an emergency order under Federal Power Act’s section 202c to meet the emergency needs.

FES requesting the intervention of the Energy secretary to prevent the possible threat caused due to the premature retirement of some of the plants. According to the communicative from the company, the count of such at the risk plants is increasing.

FES has informed the Central Nuclear Regulatory Commission and PJM on March 28 2018 that the nuclear power plant based in Pennsylvania and the other two in Ohio will be disconnected in the next 3 years. The combined capacity of the three plants is estimated at 4,048 Mega Watts.

The vulnerability of the grid is already identified by the Energy Department during December 27, 2017, and January 8, 2018, when the cold snap gripped the entire east. The natural gas is in great demand for heating the homes during that period. The availability of natural gas for power generation is low due to the great demand and pipeline problems as well as the increased prices. The coal fired and nuclear power plants have supported the requirement during that crucial period and safeguarded the Northeast grid and PJM.

The Nuclear and coal fired plants can withstand the man made and natural disruptions for the power generation because of their ability to store fuel at the site.

PJM is showing little interest to remedy this problem. Hence, FES has urged the Energy secretary for immediate intervention to solve this issue. If this issue is not solved immediately, an estimated 65 million people will face the negative outcome.

A brief Information about FirstEnergy Solutions Corp.

The leading energy supplier FirstEnergy Solutions Corp is engaged in serving industrial, commercial and residential customers in the Mid Atlantic, Midwest, and North East regions of the US.

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