Update: As previously reported, applications for rehearing were filed by FirstEnergy and the OCC, as well as the Sierra Club and a number of other environmental groups regarding the PUCO’s disallowance of cost recovery in the amount of $43,362,796.50 for FirstEnergy’s imprudent renewable energy credit (“REC”) purchases.  At issue, among other things, is the amount of the disallowance and the manner in which credits for the disallowed recovery should be allocated among FirstEnergy customers.

On September 18, 2013, the PUCO granted its entry on rehearing for most parties.  The application for rehearing filed by Direct Energy was denied by the PUCO, which noted that Direct Energy failed to make a timely appearance in the case before the Order was issued.  Direct Energy’s concerns, which primarily centered on the manner in which refunds would be issued to its retail customers, will only be before the PUCO in so far as they are raised by Direct Energy’s competitors.  The PUCO will soon issue a substantive entry on rehearing which will likely provide clarity as to how FirstEnergy should allocate customer refunds.

In addition to its application for rehearing, the Ohio Sierra Club launched a boycott campaign against FirstEnergy this week, asking residents not to choose FirstEnergy Solutions as their electric provider.  The Ohio Environmental Council and other groups launched similar campaigns.

We will continue to monitor this case and related developments and will provide updates.