READING - Metropolitan Edison customers would have an opportunity to pre-pay a portion of their future electric bills – and earn 7.5 percent interest – under a Voluntary Pre-payment Plan (VPP) proposed by the companies. The plan, which was filed with the Pennsylvania Public Utility Commission (PUC), offers qualified residential and small business customers an option to gradually phase in future generation price increases by making modest pre-payments during the next two years, before rate caps expire at the end of 2010.

“The long period of capped electric rates has been good for customers, but has left a significant gap between what they pay for electricity and what it costs to produce it,” said Douglas S. Elliott, president of Pennsylvania Operations for FirstEnergy), parent company of Met-Ed. “This plan provides a way for customers to put money aside that would earn an attractive interest rate and be used to lower their future electric bills.”

Each month, customers who sign up for the plan would pre-pay an amount equal to about 9.6 percent of their electric bill. Pre-payments would earn 7.5 percent interest and be used to reduce their electric bills in 2011 and 2012.

The table below provides examples of how the pre-payment plan would impact bills in 2009 through 2012 for residential customers using 1,000 kilowatt-hours (kWh) per month.