Potomac Edison Proposes Rate Adjustment to Support Electric System Reliability

Potomac Edison, a subsidiary of FirstEnergy Corp. (NYSE: FE), is proposing a Maryland rate adjustment to support continued investment in the electric system, including upgrades to aging infrastructure, grid modernization and projects designed to strengthen reliability. The proposed $52.8 million rate adjustment would increase the monthly bill for the average residential customer by approximately 5.3%. Even with the proposed adjustment, Potomac Edison's residential rates would remain the lowest among Maryland's investor-owned electric utilities. As of June 1, Potomac Edison's electric rates were 25% below the average rate of its in-state peers. The proposal includes a reliability improvement program focused on upgrading electric system infrastructure and technology. The program would build on investments Potomac Edison has made in recent years to improve reliability, strengthen the system and support faster restoration when outages occur. "We recognize that any increase in a customer's bill matters, and we take that responsibility seriously. This proposal is focused on investments we believe are necessary to strengthen the electric system, improve reliability and better prepare our customers for severe weather. We will continue to look for ways to manage costs responsibly while making investments that benefit customers over the long term." Recent Potomac Edison investments include: Replacing and upgrading poles, power lines and other equipment to strengthen the electric system and improve its ability to withstand severe weather. Installing smart grid technology that can automatically reroute power when outages occur, helping keep more customers in service and reducing restoration times. The proposed reliability improvement program would build on these efforts through targeted upgrades to power lines, underground equipment and grid technology. Projects would include: Installing Supervisory Control and Data Acquisition (SCADA) technology to provide greater visibility into the electric system and help crews respond to problems more quickly. Replacing substation reclosers and adding circuit ties and automation to improve system flexibility and restoration capabilities. Upgrading overhead power lines through reconductoring and replacing aging underground cables. Removing more high-risk trees near power lines before they can cause outages, with a particular focus on preparing for severe weather. Potomac Edison is committed to managing costs responsibly while making investments needed to maintain and improve the electric system. The proposed rate adjustment must be reviewed and approved by the Maryland Public Service Commission before it can take effect. The PSC's review process provides an opportunity for public input and for the commission to evaluate the proposal and its impact on customers. Potomac Edison serves about 295,000 customers in all or parts of Allegany, Carroll, Frederick, Garrett, Howard, Montgomery and Washington counties in Maryland.