Friday, February 27, 2015

PUCO rejects AEP plan; FirstEnergy next to plate

The Public Utilities Commission of Ohio on Wednesday rejected a bid by AEP to guarantee revenue for a coal fired plant in Ohio.

PUCO Rejects Deal

Potential Bad News for FirstEnergy?

AEP notes in a press release that the ruling (wherein PUCO adopted AEP's Electric Security Plan) essentially makes legal the creation of a PPA or Power Purchase Agreement -- the sort of instrument it is believed FirstEnergy seeks for both Davis-Besse (a single unit nuclear plant) and for Sammis (a coal fired plant.)  As can be seen in the above links, some pundits are wondering if the adoption of the concept without actually allowing AEP to do it bodes ill for FirstEnergy; some people, including this author, are wondering if the precedent has not been set for a successful PPA application by FirstEnergy for these two plants.

More information:

PUCO Website - PUCO Adopts Electric Security Plan for AEP Ohio

AEP Responds to PUCO Ruling

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