Update:  As noted last week, on August 15, 2012, the external auditor reports were filed with the PUCO, which evaluate whether or not FirstEnergy complied with the 3% cost cap mandate under Ohio law.  The audits of FirstEnergy’s process of acquiring renewable energy credits (“RECs”) to achieve its goals found that, while FirstEnergy technically complied with Ohio law, FirstEnergy paid “unreasonably high prices” for RECs that it purchased in comparison to prices paid by other utility companies.  Accordingly, the audit reports recommend that the PUCO consider not allowing FirstEnergy to pass on the excessive costs to customers.  The PUCO Staff also filed a 46-page, confidential final report regarding the audit reports.

On August 22, 2012, the PUCO issued an entry determining that a hearing regarding the content of the management/performance and financial audit reports was warranted.  Accordingly, a procedural schedule was established where FirstEnergy will file testimony by November 6, 2012; intervenor testimony is due by November 13, 2012; a prehearing conference will take place on November 20, 2012; and, the hearing will start on November 27, 2012.