FirstEnergy Corp.'s (FE) unit FirstEnergy Solution has been selected by the City of Fulton, Illinois to supply electricity to residents and small businesses in the community through July 2014. Over the three-year agreement, residents and small businesses are expected to save over half a million in electricity costs besides a one-time grant of $13,000 from FirstEnergy Solution to be used for city benefits.
The agreement in place will benefit community members by curtailing their electricity bill without compromising on the quality and reliability of their electric service. As per the agreement, a residential customer will receive electricity at a fixed price of 6.23 cents per kilowatt-hour (kWh), while small businesses will receive power at a fixed price of 6.04 cents per kWh.
Implementation of electrical deregulation in the state of Illinois has helped officials to select best power rates for the city of Fulton. The choice bestowed by deregulation will enable residential consumers to enjoy a 20% saving in their electricity bills while small businesses will gain by 21% from the rates charged by ComEd, a unit of Exelon Corporation (EXC) and the erstwhile power provider of Fulton.
Looking back, in January this year, the FirstEnergy unit had entered into a similar program in the state of Ohio wherein it had offered the residents of Cincinnati electricity at a fixed price of 5.99 cents per kWh through December 2012. The deal helped save a residential customer 30% from that provided by Duke Energy Corporation (DUK).
FirstEnergy Solution has consistently provided support to over 300 communities offering electricity at fixed lower rates that save electric costs for consumers.
During the first quarter 2011, FirstEnergy Solution experienced a year-over-year increase in Generation sales by gaining customers in Ohio through direct and governmental aggregation sales channels. The business' wholesale sales also rose from the year-earlier quarter.
First Energy expects earnings per share in 2011 to be in the range of $3.20 to $3.50. The Zacks Consensus Estimate for 2011 is currently $3.29 per share. We expect the upcoming merger with Allegheny Energy to benefit the company in the years to come.
FirstEnergy currently retains a Zacks #3 Rank (short-term Hold rating).
Based in Akron, Ohio, FirstEnergy is engaged in the generation, transmission, and distribution of electricity, and is also involved in energy management and other energy-related services.
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