FirstEnergy Generation Corp. Reaches Agreement To Sell 340-Megawatt Sumpter Plant
17 Dezember 2009 - 10:11PM
PR Newswire (US)
AKRON, Ohio, Dec. 17 /PRNewswire-FirstCall/ -- FirstEnergy Corp.
(NYSE: FE) today announced that its FirstEnergy Generation Corp.
subsidiary has reached an agreement in principle to sell its
340-megawatt (MW) Sumpter Plant in Sumpter, Michigan, to Wolverine
Power Supply Cooperative, Inc., for an undisclosed amount. The sale
is expected to close in first quarter of 2010. The plant, built in
2002 by FirstEnergy Generation Corp., consists of four 85-MW
natural gas combustion turbines. "The Sumpter Plant was built with
the intention of serving customers in northwest Ohio and
participating in the emerging competitive electricity marketplace
in Michigan," said Gary R. Leidich, executive vice president of
FirstEnergy, and president of FirstEnergy Generation. "As our only
facility in Michigan, the Sumpter Plant no longer is a good
strategic fit for us." Wolverine Power Cooperative, headquartered
in Cadillac, Michigan, is a generation and transmission cooperative
that provides wholesale electricity to six members in that state.
FirstEnergy is a diversified energy company headquartered in Akron,
Ohio. Its subsidiaries and affiliates are involved in the
generation, transmission and distribution of electricity, as well
as energy management and other energy-related services. Its seven
electric utility operating companies comprise the nation's fifth
largest investor-owned electric system, based on 4.5 million
customers served within a 36,100-square-mile area of Ohio,
Pennsylvania and New Jersey; and its generation subsidiaries
control more than 14,000 megawatts of capacity. Forward-Looking
Statements: This news release includes forward-looking statements
based on information currently available to management. Such
statements are subject to certain risks and uncertainties. These
statements include declarations regarding management's intents,
beliefs and current expectations. These statements typically
contain, but are not limited to, the terms "anticipate,"
"potential," "expect," "believe," "estimate" and similar words.
Forward-looking statements involve estimates, assumptions, known
and unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Actual
results may differ materially due to the speed and nature of
increased competition in the electric utility industry and
legislative and regulatory changes affecting how generation rates
will be determined following the expiration of existing rate plans
in Pennsylvania, the impact of the Public Utilities Commission of
Ohio's regulatory process on the Ohio Companies associated with the
distribution rate case, economic or weather conditions affecting
future sales and margins, changes in markets for energy services,
changing energy and commodity market prices and availability,
replacement power costs being higher than anticipated or
inadequately hedged, the continued ability of FirstEnergy's
regulated utilities to collect transition and other charges or to
recover increased transmission costs, operating and maintenance
costs being higher than anticipated, other legislative and
regulatory changes, revised environmental requirements, including
possible greenhouse gas emission regulations, the potential impacts
of the U.S. Court of Appeals' July 11, 2008 decision requiring
revisions to the Clean Air Interstate Rules and the scope of any
laws, rules or regulations that may ultimately take their place,
the uncertainty of the timing and amounts of the capital
expenditures needed to, among other things, implement the Air
Quality Compliance Plan (including that such amounts could be
higher than anticipated or that certain generating units may need
to be shut down) or levels of emission reductions related to the
Consent Decree resolving the New Source Review litigation or other
similar potential regulatory initiatives or actions, adverse
regulatory or legal decisions and outcomes (including, but not
limited to, the revocation of necessary licenses or operating
permits and oversight) by the Nuclear Regulatory Commission,
Metropolitan Edison Company's and Pennsylvania Electric Company's
transmission service charge filings with the Pennsylvania Public
Utility Commission, the continuing availability of generating units
and their ability to operate at or near full capacity, the ability
to comply with applicable state and federal reliability standards,
the ability to accomplish or realize anticipated benefits from
strategic goals (including employee workforce initiatives), the
ability to improve electric commodity margins and to experience
growth in the distribution business, the changing market conditions
that could affect the value of assets held in FirstEnergy's nuclear
decommissioning trusts, pension trusts and other trust funds, and
cause it to make additional contributions sooner, or in an amount
that is larger than currently anticipated, the ability to access
the public securities and other capital and credit markets in
accordance with FirstEnergy's financing plan and the cost of such
capital, changes in general economic conditions affecting the
company, the state of the capital and credit markets affecting the
company, interest rates and any actions taken by credit rating
agencies that could negatively affect FirstEnergy's access to
financing or its costs or increase its requirements to post
additional collateral to support outstanding commodity positions,
letters of credit and other financial guarantees, the continuing
decline of the national and regional economy and its impact on the
company's major industrial and commercial customers, issues
concerning the soundness of financial institutions and
counterparties with which FirstEnergy does business, and the risks
and other factors discussed from time to time in its Securities and
Exchange Commission filings, and other similar factors. The
foregoing review of factors should not be construed as exhaustive.
New factors emerge from time to time, and it is not possible for
management to predict all such factors, nor assess the impact of
any such factor on FirstEnergy's business or the extent to which
any factor, or combination of factors, may cause results to differ
materially from those contained in any forward-looking statements.
FirstEnergy expressly disclaims any current intention to update any
forward-looking statements contained herein as a result of new
information, future events, or otherwise. DATASOURCE: FirstEnergy
Corp. CONTACT: News Media: Ellen Raines, +1-330-384-5808,
Investors: Ron Seeholzer, +1-330-384-5415 Web Site:
http://www.firstenergycorp.com/
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