Dear Power4Schools Member:
Early this week Power4Schools electricity supplier First Energy Solutions (FES) entered into an agreement with Exelon Generation Company LLC for the sale of its retail business.
There will be an auction process in the FES bankruptcy case whereby other suppliers may submit bids. The company submitting the highest bid in the auction, or Exelon, after receipt of regulatory and court approvals, will become the new supplier to the P4S program under the same contract in place now.
As part of the bankruptcy proceeding, each P4S customer will be receiving legal documents from FES regarding the proposed sale and its supporting processes and obligations.
Given the recent news, we wanted to assure our P4S districts that the transition of electricity accounts will be seamless — you will see no change in the terms of your agreement, the rate you will pay, or in the way you receive or pay for your service. Simply stated, the only thing changing is the electricity supplier as they will assume the current P4S contract through December 2019.
In addition, if anything would change, P4S holds a substantial "Letter of Credit"
that would be utilized to offset any loss of savings that could occur.
But again, we do not anticipate this will happen and we do not anticipate that you will need to do anything. We will continue to have our energy consultant and legal counsel monitor the situation.
As always, P4S will continue to serve as a trusted advocate to negotiate for our member districts and will continue to provide your district with the best possible service, price, consumer protections and financial security.
As a reminder, P4S is currently working through the RFP process to secure an electric supplier to service districts beyond the current contract which remains in effect through December 2019.
The initial bid process is expected to be completed in the next few months.
P4S will review the form filings from the bankruptcy court your district will be receiving over the next several months and keep you apprised of developments in the FES bankruptcy case.
If you have questions, please feel free to contact OSC Utility Manager Barb DelRoso at bdelroso@osconline.org or 216-447-3100.
Thank you for your support and attention to this matter.
