FirstEnergy Corp. aims to break into the power brokerage business, as the reorganization of FirstEnergy Solutions, its generation subsidiary, prepares to exit bankruptcy with a new name.
The new brokerage and aggregation venture, operating through a subsidiary called Suvon and doing business as FirstEnergy Advisors, will launch initially in Ohio, according to a Public Utilities Commission of Ohio filing dated Jan. 17. The new entity could begin to target customers as soon as Feb. 16 if its broker license is approved by the PUC.
Lorraine Rader, director of energy sales at FirstEnergy, submitted the filing. She has more than 10 years of experience in retail sales and marketing of electricity to residential, commercial and industrial customers.
“As the name FirstEnergy Advisors indicates, the company would work with customers to understand their energy needs, assess market trends, issues and risks, and discuss applicable products and services,” says Mark Durbin, a spokesperson for FirstEnergy. “They would also provide energy brokering services to customers—obtaining bids from various electric suppliers; evaluating the pricing, product offers, and terms and conditions; and selecting the option that would best suit the customer’s individual needs.”
The brokerage will leverage FirstEnergy’s regulatory and energy market expertise as well as its established supplier relationships, he adds.
As a broker, and unlike power marketers, FirstEnergy Advisors will not own generation plants or even purchase any power itself.
Meanwhile, FirstEnergy's generation subsidiary, FirstEnergy Solutions, is being rebranded Energy Harbor in preparation for its exit from bankruptcy as a separate company, unaffiliated with FirstEnergy.