February 26, 2016, Volume 5, Issue 19

02/26/2016

Update: Stakeholders filed comments in response to the complaints filed against AEP, FirstEnergy, and their unregulated generating affiliates. OMA Energy Group, PJM, the Independent Market Monitor, the Pennsylvania Public Utility Commission, OCC, and a few others offered comments in support of the complaints. OMA Energy Group argued that the FERC should rescind the waiver on affiliate power sales restrictions in order to protect customers, and especially manufacturers, from increased costs. Further, OMA Energy Group explained that the FERC should subject the proposed PPA contracts to the Edgar/Allegheny standard, which examines whether an affiliate transaction poses the risk of anticompetitive and abusive effects. Neither AEP nor FirstEnergy used a competitive solicitation in negotiating the proposed PPA contracts with their unregulated generating affiliates, thus OMA Energy Group asserted that the proposed PPA contracts would fail the Edgar/Allegheny standard.

Top