Update: The Federal Energy Regulatory Commission (FERC) granted the complaints filed against AEP, FirstEnergy, and their unregulated generating affiliates (Respondents) and rescinded Respondents’ waivers on affiliate power sales restrictions.  FERC explained that no sales may be made with respect to the Affiliate PPAs unless and until the Respondents can show that the Affiliate PPAs are just, reasonable, and free from affiliate abuse. FERC agreed with the arguments of OMA Energy Group and others, explaining that where circumstances show that customers have no choice but to pay the costs of an affiliate transaction, they are effectively captive to the transaction. In response to arguments made that the PUCO can adequately protect customers from the Affiliate PPAs, FERC noted that the PUCO’s authority is limited to the retail sphere. FERC’s authority, on the other hand, applies to regulation of the wholesale sphere, which includes an evaluation of whether the Affiliate PPAs are just, reasonable, and free from affiliate abuse. Respondents were also ordered by FERC to explain what impact the decision will have on issues pertaining to, among other things, corporation separation and information sharing.