Dear Power4Schools Member:
Power4Schools (P4S) continues to monitor developments in the FES bankruptcy proceedings on your and the other P4S participants’ behalf. You recently received an email from FirstEnergy Solutions (FES) regarding a change in their approach for their customers so P4S is reaching out with a brief explanation.
FES has continued to meet its obligations for all P4S participants and its other customers since declaring bankruptcy on March 31, 2018. In July 2018, FES announced a tentative sale of FES’s retail contracts to Constellation Energy for $140 million. The sale would have involved your agreement with FES but, again, would not have impacted the pricing or terms of your agreement.
In September 2018, an auction was set to allow other entities to bid. Since, no other bidders came forward the auction was cancelled and at that point it was logical to expect the sale to move forward. However, over the subsequent months the sale did not get approved by the Courts. Since then, Exelon, the parent of Constellation filed a suit accusing FES of stalling the sale to Constellation and asked that the sale be finalized.
Today, FES provided many customers notice that it was going to terminate the potential sale to Constellation and that it would continue providing service to its retail customers like the Power4Schools participants. FES plans to exit bankruptcy and continue serving its customers.
There are two important points to take away from all of this:
First and foremost,
your District will not see any disruption in the supply or electric generation pricing regardless of any decisions made in bankruptcy by FES or the Courts.
Second, P4S continues to hold a $1.5 million letter of credit that could be utilized to make up any lost savings caused by the bankruptcy.
Finally, Power4Schools will shortly be announcing a new program in the FirstEnergy territory that will continue to offer the most competitive pricing available for your facilities.