Update: The purpose of this proceeding, which has been pending at the PUCO for several years, is to evaluate whether FirstEnergy complied with the 3% cost cap mandate under the Ohio law establishing alternative energy standards.  Specifically, although each utility making sales to retail Ohio customers must ultimately achieve 12.5% of sales from renewable energy resources by 2025, the utilities are excused from the requirements if the reasonably expected cost of that compliance exceeds its reasonably expected cost of otherwise producing or acquiring the requisite electricity by 3% or more.  The case involves allegations that FirstEnergy overinflated payments for renewable energy credits, most of which were purchased from First Energy Solutions, in order to meet the standards.  The increased costs were passed along to consumers.

On July 31, 2013, PUCO was scheduled to issue its opinion and order in this proceeding.  However, the PUCO decided to postpone its decision until next week. PUCO Chairman Todd Snitchler said the delay is to allow time for the PUCO to “fine tune” its order.  Also pending in the same the case is AEP-Ohio’s request to reopen the entire case for further proceedings.  A ruling on AEP-Ohio’s request may also be decided next week, although the PUCO could delay the decision on AEP’s request or take up issues related to the 3% cost cap in another proceeding.  We will continue to monitor this proceeding and provide updates accordingly.