Ohio Adopts Pricing From FirstEnergy EDCs' Second Default Service Auction

The Public Utilities Commission of Ohio (PUCO) accepted the results of FirstEnergy’s second wholesale auction held in April that will ultimately determine its Standard Service Offer through May 2019.

During the April 26, 2016, auction, competitive suppliers submitted bids on one-, two- and three-year products to supply electricity to FirstEnergy’s Ohio utility customers.

The one-year product (16 tranches) resulted in an average clearing price of $49.67 per megawatt-hour (MWh) for the delivery period of June 1, 2016 to May 31, 2017.

The two-year product (17 tranches) resulted in an average clearing price of $50.76 per MWh for the delivery period of June 1, 2016 to May 31, 2018.

The three-year product (17 tranches) resulted in an average clearing price of $51.44 per MWh for the delivery period of June 1, 2016 to May 31, 2019.

There were at least six winning bidders in the auction; names of the winning bidders will remain confidential for 21 days.

An earlier April 2016 auction for another portion of SSO supplies for the same term lengths, as the EDCs set up their new portfolio, had resulted in an average clearing price of $48.46 per MWh for the delivery period of June 1, 2016 to May 31, 2017; an average clearing price of $49.36 per MWh for the delivery period of June 1, 2016 to May 31, 2018, and an average clearing price of $50.49 per MWh for the delivery period of June 1, 2016 to May 31, 2019.