Ohio Regulators Scale Back FirstEnergy’s Proposed PPA, Pleasing No One
The Public Utilities Commission of Ohio rejected a virtual power purchase agreement proposed by FirstEnergy, instead allowing the utility to recover a smaller amount of revenue through a Distribution Modernization Rider (DMR) recommended by its staff. Regulators set the DMR at $132.5 million annually for three years, grossed up for taxes, with the possibility of a two-year extension. FirstEnergy had proposed $558 million per year for eight years. The decision pleased no one, as consumer groups decried a “bailout” for the utility and FirstEnergy’s CEO said the rider will be “insufficient to cover the necessary and costly investments” in the utility’s grid.